Volume 2, Issue 2 October, 2003

Livery Exchange Client Newsletter

WHAT ARE THE REQUIRED INSURANCE LIMITS AND WHY
The limousine industry is engaged in transporting people for hire and are subject to various federal ,state, and Quasi-Governmental (i.e. - airports) regulatory requirements. In order to address each area properly, I will address in three separate parts.  The first part will cover the federally-imposed limits, the second will focus on the state-imposed limits, and the final part will focus on the quasi-governmental requirements. I hope these articles sheds some light as to what insurance limits are required and by whom.  Should you need further clarification, please do not hesitate to call us at 508-754-6817.

What is the Interstate Commerce Commission??
The Interstate Commerce Commission (ICC) was established in 1887 and was charged with regulating the economics and services of specified carriers engaged in transportation between states.  More specifically, the surface transportation under the ICC's jurisdiction included railroads, trucking companies, bus lines, freight forwarders, water carriers, oil pipelines, transportation brokers, and express agencies.

The ICC's safety functions were transferred to the Dept. of Transportation when that department was created in 1966; while the ICC retained its rate-making and regulatory functions. However, in consonance with the deregulatory movement, the ICC's powers over rates and routes in rails and trucking were curtailed in 1980 by the Staggers Rail Act and Motor Carriers Act. Most ICC control over interstate trucking was abandoned in 1994, and the agency was terminated at the end of 1995. Many of its remaining functions were transferred to the new National Surface Transportation Board, now referred to as the Federal Motor Carrier Safety Administration (FMCSA).

What is the Federal Motor Carrier Safety Administration (FMCSA)??
The Federal Motor Carrier Safety Administration (FMCSA) was established as a separate administration within the U.S. Department of Transportation on January 1, 2000, pursuant to the Motor Carrier Safety Improvement Act of 1999. Their primary mission is to reduce crashes, injuries, and fatalities involving large trucks and buses and they are dedicated to improving bus, limousine, and truck safety.

What Limits of Liability are required to travel interstate??

APPLICATION FOR MOTOR PASSENGER CARRIER AUTHORITY
All motor passenger carrier applicants must maintain public liability insurance if they operate in interstate commerce.  Such operations can include both trips across state lines, or furtherance of interstate commerce? which could be defined to include airport runs for passengers arriving or departing across state lines.  The minimum amount of insurance coverage required is as follows:

• Vehicles with seating capacities of 16 passengers or more ($5,000,000)
• Vehicles with seating capacities of 15 passengers or fewer only ($1,500,000)

Are special filings need to travel interstate?
Yes.  In order to transport people for hire interstate (across state lines), two things are required:

1. Your company must have the proper financial responsibility limit as stated above and,
2. Your company must have the federal authority to travel interstate. This authority can be obtained by filing the proper application with the Federal Motor Carrier Safety Administration (FMCSA)

We at Wolpert Insurance Agency can provide you with this application and can assist you in completing it, or can refer you to an organization who can get you the authority.