What Is The MCS-90 Form and Why Do I Need It?

The MCS-90 form acts as a guarantee. It states that there will be a source of funds designated to pay for a loss when the insured is legally liable.  It’s purpose is to the public that in the event that a motor carrier doesn’t have the required minimum, no financial consequences will be present. Inside the MCS-90 it states that it “covers all vehicles owned, operated, or maintained by the insured regardless of whether or not each motor vehicle is specifically described in the policy”. However,  there is a chance the insurance company may redeem their losses by substituting the claims paid against the motor carrier.

 

What Regulations Make The MCS-90 Form Necessary?

The Federal Motor Carrier Act of 1980 is the main reason why the need for the MCS-90 form is present. Inside this act, it states that each motor carrier who participates in interstate or for hire commerce has a requirement to have proof that shows their financial responsibility is equal to or greater than the state minimum. There are three ways in which a motor carrier can present their proof:

  • The motor carrier can select the option to self-insure their company.  By selecting self insuring, the motor carrier is basically saying that they have the resources to cover all claims. These claims are ones that come about from their company’s disregard. It also states that they are legally liable to pay.
  • The motor carrier can select the option to provide the proof of financial responsibility with a surety bond.   A surety bond is a promise for one party  to pay for another party in case they fail to pay.
  • The motor carrier can select the option to acquire insurance through the standard market.  If, and when, the motor carrier chooses this option, this is when the MCS-90 form will  be necessary.

While the MCS-90 form does not provide the insurance itself, it is a vital part of a motor carrier’s portfolio and can go a long way to help motor carriers and insurers protect themselves.

Endorsement for Motor Carrier Policies of Insurance
FORM MCS - 90
Motor Carrier Name :
Motor Carrier State or Province :
USDOT Number :
Amending Policy Number :
Effective Date :
Name of Insurance Company :
Telephone Number :
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If you have any questions regarding the MCS-90 form, please do not hesitate to give us a call at 1-888-669-4383. We will be more than happy to assist you.