What it does
Form MCS-90 is the proof of financial responsibility that 49 CFR 387.7 requires motor carriers of property to keep at their principal place of business. By attaching it, the insurer agrees to pay, within the limits described, "any final judgment recovered against the insured for public liability resulting from negligence in the operation, maintenance or use of motor vehicles" subject to the federal financial responsibility rules, "regardless of whether or not each motor vehicle is specifically described in the policy," and no policy condition, exclusion or violation relieves the insurer of that obligation. In exchange, the insured "agrees to reimburse the company" for any payment it would not have owed under the policy except for the endorsement. Courts describe it as a suretyship protecting the public rather than added coverage for the carrier.
Who needs it
- For-hire carriers of property in interstate or foreign commerce operating vehicles of 10,001 pounds GVWR or more: minimum $750,000.
- Carriers of oil and listed hazardous materials: $1,000,000; certain bulk hazardous materials and highway-route-controlled radioactive material: $5,000,000 (including some private carriers and some intrastate hazmat).
- Vehicles under 10,001 pounds GVWR are generally outside 49 CFR 387 subpart A unless carrying specified high-hazard materials.
Key rules
- The endorsement must be issued in the exact name of the motor carrier and remain in effect continuously until cancelled with 35 days' written notice.
- Carriers domiciled in a contiguous foreign country must carry a legible English copy of the MCS-90 (or MCS-82) in each vehicle operated in the United States.
Selling notes
Explain the reimbursement clause: if the insurer pays a claim only because of the MCS-90 (for example, an unscheduled vehicle or excluded driver), it can recover from the carrier. The federal filing that proves coverage to FMCSA is a separate certificate (BMC-91 or BMC-91X) filed electronically by the insurer.
