1. Forms
2. CA
3. CA-DS-21

What the form is

The CA DS 21, Motor Carrier Declarations, is a fundamental component of an insurance policy for motor carriers. It is not a coverage form itself, but rather the page(s) that personalize the associated Motor Carrier Coverage Form (CA 00 20) for a specific insured. The declarations provide a summary of key information agreed upon by the insurer and the named insured. This includes details such as:

• The named insured and their mailing address.
• The policy period, including inception and expiration dates.
• A schedule of coverages, indicating which specific coverages (e.g., liability, physical damage, personal injury protection) are provided under the policy.
• The limits of insurance for each selected coverage.
• The designation of "covered autos" using numerical symbols from the Motor Carrier Coverage Form, which defines which vehicles are insured for each coverage.
• The premium for the policy.
• A list of all endorsements attached to the policy that modify its terms.
• Information about the insurance company and producer.

Classes of business it applies to

The CA DS 21 is specifically designed for motor carriers – businesses that transport goods, materials, or commodities using motor vehicles. This encompasses a wide range of operations, including:

• Common Carriers: Trucking companies that offer their services to the general public to haul various types of freight. For example, a long-haul trucking company transporting goods for multiple different businesses.
• Contract Carriers: Businesses that transport goods under specific contracts with particular shippers. For instance, a trucking company that has an exclusive agreement to transport goods for a single manufacturer.
• Private Carriers: Companies that haul their own goods as part of their primary business. An example would be a large bakery that owns and operates a fleet of trucks to deliver its products to retail stores.

Essentially, any business whose operations involve hauling goods for others or hauling their own goods as a significant part of their enterprise would utilize the Motor Carrier Declarations in conjunction with the Motor Carrier Coverage Form.

Special considerations

Accuracy and completeness are paramount when filling out the CA DS 21, as the information it contains dictates the scope and terms of the insurance coverage.

• Covered Auto Symbols: The selection of the correct numerical symbols to designate covered autos is critical. Using an incorrect symbol could lead to unintended coverage gaps or, conversely, broader coverage than anticipated. For example, Symbol 61 ("Any Auto") provides the broadest coverage, while other symbols restrict coverage to specific types of vehicles (e.g., owned autos, hired autos).
• Endorsements: All endorsements that amend the standard Motor Carrier Coverage Form must be listed on the declarations. This ensures clarity on how the base policy has been modified.
• Named Insured: The named insured should be precisely identified, including all legal entities that require coverage.
• Policy Period and Limits: These must be clearly stated and understood by the insured.
• Audit Provision: If the policy premium is subject to audit (e.g., based on mileage or gross receipts), the audit period will typically be specified on the declarations.

Key information for agents and underwriters

The CA DS 21 is a vital document for both insurance agents and underwriters:

• Agents: Agents must work closely with their motor carrier clients to ensure all information on the declarations is accurate and reflects the insured's operations and coverage needs. This includes selecting the appropriate covered auto symbols, limits, and any necessary endorsements. Misclassifications or omissions can lead to significant uncovered losses.
• Underwriters: Underwriters use the CA DS 21 as a primary source of information for risk assessment and pricing. The details on the declarations, such as the types of vehicles operated (inferred from schedules or symbols), radius of operations, limits of liability, and chosen coverages, help the underwriter evaluate the exposure and determine an appropriate premium. They will also review the list of endorsements to understand any modifications to standard coverage. The declarations page, along with applications and loss history, forms the basis of the underwriting decision.