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A motor carrier cannot operate a commercial motor vehicle (CMV) transporting passengers until it has obtained, and has in effect, minimum levels of financial responsibility.
These requirements apply to for-hire motor carriers operating passenger-carrying CMVs in interstate commerce.
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 |
Vehicle seating capacity. Minimum limits:
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:
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: