1. Forms
2. CA
3. CA-23-30

What the form is

The CA 23 30 Motor Carrier Endorsement is designed to be added to a standard Business Auto Coverage Form (CA 00 01). Its primary purpose is to modify the Business Auto Policy to address the specific exposures of an insured who operates as a motor carrier (i.e., a trucker transporting goods for others for a fee) in addition to their other non-trucking business operations. This endorsement essentially tailors the Business Auto Coverage Form by incorporating certain provisions typically found in the more specialized Motor Carrier Coverage Form (CA 00 20), thereby allowing a business with mixed operations to be covered under a single policy rather than requiring two separate ones.

Classes of business it applies to

This endorsement is suitable for businesses that have a primary operation other than trucking but also engage in motor carrier activities. For example:

• A manufacturing company that primarily uses its trucks to deliver its own products (private carriage) but occasionally uses those same trucks to haul goods for others for a fee (common or contract carriage).
• A retail business, like a floral shop, that owns vehicles for local deliveries but decides to also use one or two of those vehicles to operate a small, for-hire trucking service.

Essentially, it's for insureds whose trucking operations are significant enough to require motor carrier-specific coverages but not so dominant as to necessitate a full Motor Carrier Coverage Form for all their vehicle exposures.

Special considerations

Several important considerations apply when using the CA 23 30 endorsement:

• Schedule Completion: The endorsement contains a schedule that must be carefully and accurately completed. This schedule addresses critical aspects such as hired auto provisions specifically for motor carrier operations, the rating basis for these operations (which can be cost of hire, gross receipts, or mileage), and details for Trailer Interchange Coverage if it's being provided.
• Named Insured and Effective Date: If a Named Insured or an effective date is entered on the endorsement itself, this information can override what is stated on the main policy Declarations. This could lead to unintended coverage gaps or confusion, so it's often best to leave these blank if the intent is for the endorsement to apply to all named insureds on the policy and from the policy's inception date.
• Modifies Key Policy Sections: The endorsement makes significant changes to the underlying Business Auto Coverage Form, including:
  • Who Is An Insured: The definition of an insured is altered to reflect scenarios common in motor carrier operations, such as the owner of a hired or borrowed vehicle used in the named insured's motor carrier business.
  • Trailer Interchange Coverage: This section can be activated to provide physical damage coverage for non-owned trailers in the insured's possession under a written trailer interchange agreement, subject to the terms and conditions outlined.
  • Physical Damage Coverage: Modifications may be made to how physical damage coverage applies.
  • Other Insurance: The 'Other Insurance' condition is amended to address how coverage applies when other insurance may also be available, particularly in situations involving hired or borrowed autos and written agreements between motor carriers.

Key information for agents and underwriters

Agents and underwriters should be mindful of the following when dealing with the CA 23 30:

• Appropriate Use: Agents should recommend this endorsement when their client has a clear mix of non-trucking and for-hire trucking operations to ensure proper coverage without the complexity or potential redundancy of two separate policies.
• Risk Assessment: Underwriters need to thoroughly evaluate the nature and extent of the motor carrier operations. This includes understanding the types of cargo being hauled, the radius of operations, driver qualifications, and the specifics of any trailer interchange agreements.
• Rating: The rating for the motor carrier portion of the exposure will be based on the information provided in the endorsement's schedule (e.g., cost of hire, gross receipts, or mileage). This premium is typically subject to audit to ensure accuracy.
• Coverage Gaps: It's crucial to ensure that the limits and coverages provided are adequate for the motor carrier exposures, which can sometimes be more severe than typical business auto risks. Pay close attention to how the endorsement interacts with the primary Business Auto Coverage Form and any other endorsements on the policy.
• Contractual Agreements: The 'Other Insurance' provisions are particularly important in the context of motor carrier operations, as written agreements (e.g., hold harmless clauses in lease agreements) between parties can dictate which policy is primary and which is excess in the event of a loss involving hired or borrowed vehicles.