1. Forms
2. FO
3. FORM-F

What the Form Is

The Form F, often titled "Motor Carrier Bodily Injury and Property Damage Liability Policy Endorsement" or similar, is an endorsement attached to a commercial automobile liability insurance policy issued to a motor carrier. Its primary purpose is to ensure that the motor carrier's insurance policy complies with the financial responsibility requirements of a specific state in which the carrier operates. This endorsement serves as a guarantee to the public and the relevant state regulatory authority (such as the Public Service Commission or Department of Transportation) that the insurer will pay for bodily injury and property damage caused by the motor carrier, up to the limits mandated by that state's law. A key feature of this endorsement is that this guarantee applies regardless of whether the specific vehicle involved in an accident is actually listed or described in the policy, and it ensures that the policy's coverage provisions meet or exceed state requirements for public liability protection.

Classes of Business It Applies To

Form F is specifically applicable to businesses engaged in motor carrier operations. This includes:

• Intrastate Motor Carriers: Trucking companies, couriers, or other transport businesses that haul goods or passengers solely within the borders of a single state and are subject to that state's motor carrier regulations. For example, a local delivery company operating exclusively within California might be required by the California Public Utilities Commission to have a Form F endorsement on its policy.
• Interstate Motor Carriers (for intrastate operations): While federal regulations (like the MCS-90 endorsement) apply to interstate commerce, motor carriers may also need to comply with individual state financial responsibility laws for their intrastate operations or when their vehicles are registered in a particular state.

Essentially, any motor carrier needing to provide proof of financial responsibility to a state regulatory body for its vehicles operating under that state's jurisdiction would likely require this type of endorsement.

Special Considerations

• State-Specific Requirements: The exact requirements and the necessity for Form F (or an equivalent) can vary significantly from state to state. It directly incorporates the financial responsibility laws of the specific state into the insurance contract.
• Filing with State Authorities: The Form F, often in conjunction with a Form E (Uniform Motor Carrier Bodily Injury and Property Damage Liability Certificate of Insurance), is typically filed directly with the state agency that regulates motor carriers.
• Broadened Coverage: The endorsement can effectively broaden the policy's coverage to meet statutory obligations, potentially covering situations or vehicles that might otherwise be excluded under the standard policy terms. However, this is for the benefit of the public, and the insurer may retain the right to seek reimbursement from the insured for any payments made solely due to the Form F that would not have been covered under the policy itself.
• Continuous Until Cancelled: Like Form E, Form F generally applies on a "continuous until cancelled" basis. If the underlying insurance policy is cancelled, the insurer is typically required to provide advance notice to the state regulatory agency, often by filing a Form K (Uniform Notice of Cancellation of Motor Carrier Insurance Policies).
• No Specified Limits on Form: Unlike some endorsements, Form F often does not state specific dollar limits itself; instead, it amends the policy to provide coverage in accordance with the state's law or regulation, up to the extent of the coverage and limits required by that law.

Key Information for Agents and Underwriters

• Risk Assessment: The requirement for a Form F signals that the insured is subject to stringent motor carrier regulations. Underwriters must be fully aware of the specific state's financial responsibility laws and the potential for the policy to respond to a broader range of incidents. The carrier's operational area, safety record, and compliance history are critical underwriting considerations.
• Pricing: The guarantee provided by Form F can increase the insurer's exposure, as it may obligate the insurer to pay claims for which coverage might not otherwise apply under the unendorsed policy. This increased risk should be factored into the premium.
• Ensure Accurate Filings: Agents play a crucial role in ensuring that the Form F (and related forms like E and K) are correctly completed and filed with the appropriate state authorities. Errors in the named insured, policy numbers, or regulatory docket numbers can lead to compliance issues for the motor carrier, including suspension of operating authority.
• Coverage Adequacy: While Form F ensures compliance with state minimums, these minimums may not be sufficient for the motor carrier's overall liability exposure. Agents should discuss the need for higher limits in the base policy and potentially an umbrella or excess liability policy.
• Cancellation Procedures: Both agents and underwriters must be aware of and strictly follow the specific procedures for policy cancellation, including timely notification to the relevant state agency using Form K or its equivalent, to avoid regulatory penalties or continued liability.