This subpart sets the minimum levels of financial responsibility that must be maintained by motor carriers of property. These levels are required when operating motor vehicles in interstate, foreign, or intrastate commerce.
387.2 Applicability.
(a) This subpart applies to for-hire motor carriers operating motor vehicles transporting property in interstate or foreign commerce.
(b) This subpart applies to motor carriers operating motor vehicles transporting hazardous materials, hazardous substances, or hazardous waste in interstate, foreign, or intrastate commerce.
(c) Exception.
(1) The rules in this part do not apply to a motor vehicle that has a gross vehicle weight rating (GVWR) of less than 10,000 pounds. This exception does not apply if the vehicle is used to transport any quantity of a Division 1.1 or 1.3 explosive material, any quantity of Division 2.3, Hazard Zone A, or to any Class 7 material in interstate or foreign commerce.
(2) The rules in this part do not apply to the transportation of nonbulk oil, nonbulk hazardous materials, substances, or wastes in intrastate commerce, except for Class 7 material in intrastate commerce.
387.3 Financial responsibility required.
(a) Policies of insurance, surety bonds, and endorsements required under this section shall remain in effect continuously until terminated. Cancellation may be effected by the insurer or the insured motor carrier giving 35 days notice in writing to the other.
(b) Exception. Policies of insurance and surety bonds may be obtained for a finite period of time to cover any lapse in continuous compliance.
(c) Policies of insurance and surety bonds required under this section may be replaced by other policies of insurance or surety bonds. The retiring insurer or surety will be considered not liable for events occurring on or after the effective date of the replacement policy or bond or at the end of the 35-day cancellation period required in paragraph (a) of this section, whichever is sooner.
Question
You are a for-hire motor carrier. The most likely purpose of the document shown is to:
A.ensure that motor carriers can fulfill their liabilities in the event of an accident, disaster, or similar loss.
B.penalize motor carriers who transport any kind of hazardous or explosive substance without proper insurance.
C.regulate the initiation and termination of relationships between motor carriers and their insurers.
D.stipulate the dollar amount of coverage motor carriers must maintain to meet their financial obligations.
E.establish rules governing the operation of light trucks in interstate, foreign, and intrastate commerce.
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The most likely purpose of the document shown is to:
A. ensure that motor carriers can fulfill their liabilities in the event of an accident, disaster, or similar loss.
This conclusion is drawn from the focus of the document on establishing minimum levels of financial responsibility that motor carriers must maintain while operating their vehicles, which is primarily aimed at ensuring they can cover liabilities arising from accidents and similar incidents.
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