Motor carriers of passengers

Scope

These requirements apply to for-hire motor carriers operating passenger-carrying CMVs in interstate commerce.

Regulatory citations

• 49 CFR 387, Subpart B — Motor carriers of passengers

Key definitions

• Commercial motor vehicle (CMV): A self-propelled or towed motor vehicle used on a highway, in interstate commerce, that meets any one of the following criteria:
  • Is designed or used to transport more than 8 passengers (including the driver) for compensation; or
  • Is designed or used to transport more than 15 passengers (including the driver), and not used to transport passengers for compensation.

• Endorsement: An amendment to an insurance policy.

• Financial responsibility: The financial reserves (insurance policies, surety bonds) sufficient to satisfy liability.

Summary of requirements

The following are the minimum levels of financial responsibility for a property-carrying motor carrier:

Vehicle seating capacity. Minimum limits:

• Any vehicle with a seating capacity of 16 passengers or more, including the driver: $5,000,000
• Any vehicle with a seating capacity of 15 passengers or less, including the driver: $1,500,000

Policies of insurance, surety bonds, and endorsements required must remain in effect continuously until terminated. Cancellation may be effected by the insurer or insured motor carrier by giving 35 days’ notice in writing to the other. The 35 days’ notice shall start from the date the notice is transmitted. Proof of transmission shall be sufficient proof of notice.

Exceptions. The financial responsibility requirements do not apply to:

• A motor vehicle transporting only school children and teachers to/from school;
• A motor vehicle providing taxicab service and having a capacity of fewer than 7 passengers, which is not operated on a regular route or between specified points;
• A motor vehicle carrying fewer than 16 individuals in a single daily round-trip commute to/from work; and
• A motor vehicle operated by a motor carrier under contract providing transportation of preprimary, primary, and secondary students for extracurricular trips organized, sponsored, and paid by a school district.

Policies and surety bonds may be obtained for a finite period to cover any lapse in continuous compliance. All endorsements must be in the form prescribed by 387.39.

Recordkeeping. Each motor carrier must maintain the following at its principal place of business:

• “Endorsement(s) for Motor Carrier of Passengers Policies of Insurance for Public Liability Under Section 18 of the Bus Regulatory Reform Act of 1982” (Form MCS-90B), issued by an insurer(s); or
• “Motor Carrier of Passengers Surety Bond for Public Liability Under Section 18 of the Bus Regulatory Reform Act of 1982” (Form MCS-82B), issued by a surety.