What it does
Certificates of insurance filed with FMCSA cannot simply lapse. Under 49 CFR 387.313(d) they "shall not be cancelled or withdrawn until 30 days after written notice has been submitted" on the prescribed form: Form BMC-35, Notice of Cancellation Motor Carrier Policies of Insurance, or Form BMC-36 for surety bonds. The 30 days run from the date the notice is filed with FMCSA.
Who uses it
The insurer (or the carrier) when a policy supporting a BMC-91, BMC-91X or BMC-34 filing is cancelled or non-renewed. Some states accept BMC-35 or BMC-36 notices for their own filings as well; Colorado's motor carrier rules, for example, direct insurers to give notice on BMC-35 or BMC-36.
Key rules
- A replacement filing accepted by FMCSA terminates the prior insurer's liability as of the replacement's effective date, without waiting 30 days.
- If the filing lapses without replacement, the carrier no longer meets the continuing security requirement that its authority depends on (49 CFR 387.301(c)).
Selling notes
When moving a trucker to a new insurer, have the new insurer's filing effective on the same day the old policy ends. Monitor FMCSA's licensing records for pending BMC-35 cancellations on your accounts so the carrier is not put out of service.
