|(a) Automobile liability insurance requirements. A
motor carrier must file proof of commercial automobile liability insurance
with the department on a form acceptable to the director for each
vehicle required to be registered under this subchapter. The motor
carrier must carry and maintain automobile liability insurance that
is combined single limit liability for bodily injury to or death of
an individual per occurrence, loss or damage to property (excluding
cargo) per occurrence, or both. Extraneous information will not be
considered acceptable, and the department may reject proof of commercial
automobile liability insurance if it is provided in a format that
includes information beyond what is required. Minimum insurance levels
are indicated in the following table. However, a motor carrier that
operates a foreign commercial motor vehicle must comply with the minimum
level of financial responsibility in 49 C.F.R. Part 387 to the extent
Part 387 prescribes a higher level of financial responsibility than
the following table. The department adopts by reference 49 C.F.R.
Part 387. Effective October 23, 2015, the department adopts by reference
the amendments to 49 C.F.R. Part 387 with an effective date of October
(b) Cargo insurance. Household goods carriers shall
file and maintain with the department proof of financial responsibility.
(1) The minimum limits of financial responsibility
for a household goods carrier for hire is $5,000 for loss or damage
to a single shipper's cargo carried on any one motor vehicle.
(2) The minimum limits of financial responsibility
for a household goods carrier for hire is $10,000 for aggregate loss
or damage to multiple shipper cargo carried on any one motor vehicle.
In cases in which multiple shippers sustain damage and the aggregate
amount of cargo damage is greater than the cargo insurance in force,
the insurance company shall prorate the benefits among the shippers
in relationship to the damage incurred by each shipper.
(c) Workers' compensation or accidental insurance coverage.
(1) A motor carrier that is required to register under
this subchapter and whose primary business is transportation for compensation
or hire between two or more incorporated cities, towns, or villages
shall provide workers' compensation for all its employees or accidental
insurance coverage in the amounts prescribed in paragraph (2) of this
(2) Accidental insurance coverage required by paragraph
(1) of this subsection shall be at least in the following amounts:
(A) $300,000 for medical expenses and coverage for
at least 104 weeks;
(B) $100,000 for accidental death and dismemberment,
including 70 percent of employee's pre-injury income for not less
than 104 weeks when compensating for loss of income; and
(C) $500 for the maximum weekly benefit.
(d) Qualification of motor carrier as self-insured.
(1) General qualifications. A motor carrier may meet
the insurance requirements of subsections (a) and (b) of this section
by filing an application, in a form prescribed by the department,
to qualify as a self-insured. The application must include a true
and accurate statement of the motor carrier's financial condition
and other evidence that establishes its ability to satisfy obligations
for bodily injury and property damage liability without affecting
the stability or permanency of its business. The department may accept
USDOT evidence of the motor carrier's qualifications as a self-insured.
(2) Applicant guidelines. In addition to filing an
application as prescribed by the department, an applicant for self-insured
status must submit materials that will allow the department to determine
the following information.
(A) Applicant's net worth. An applicant's net worth
must be adequate in relation to the size of its operations and the
extent of its request for self-insurance authority. The applicant
must demonstrate that it can and will maintain an adequate net worth.
(B) Self-insurance program. An applicant must demonstrate
that it has established and will maintain a sound insurance program
that will protect the public against all claims involving motor vehicles
to the same extent as the minimum security limits applicable under
this section. In determining whether an applicant is maintaining a
sound insurance program, the department will consider:
(ii) sinking funds;
(iii) third-party financial guarantees;
(iv) parent company or affiliate sureties;
(v) excess insurance coverage; and
(vi) other appropriate aspects of the applicant's program.
(C) Safety program. An applicant must submit evidence
of substantial compliance with the federal motor carrier safety regulations
as adopted by the Texas Department of Public Safety and with Transportation
Code, Chapter 644.
(3) Other securities or agreements. The department
may accept an application for approval of a security or agreement
if satisfied that the security or agreement offered will adequately
protect the public.
(4) Periodic reports. An applicant shall file annual
statements, semi-annual and quarterly reports, and any other reports
required by the department reflecting the applicant's financial condition
and the status of its self-insurance program while the motor carrier
(5) Duration and coverage of self-insured status. The
department may approve an applicant as a self-insured for any specific
time or for an indefinite time. An approved self-insured status only
applies to the type of cargo that the applicant reported to the department
in the application for self-insured status.
(6) Revocation of self-insured status. On receiving
evidence that a self-insured motor carrier's financial condition has
changed, that its safety program or record is inadequate, or that
it is otherwise not in compliance with this subchapter, the department
may at any time require the self-insured to provide additional information.
On 10 days' notice from the department, the self-insured shall appear
and demonstrate that it continues to have adequate financial resources
to pay all claims involving motor vehicles for bodily injury and property
damage liability. The self-insured shall also demonstrate that it
remains in compliance with the requirements of this section and of
any active self-insurance orders issued or adopted by the department.
If an applicant fails to comply with this paragraph, its self-insured
status may be revoked.
(7) Appeal. An applicant may appeal a denial or revocation
of self-insurance status by filing a petition for an administrative
hearing in accordance with Chapter 206, Subchapter D of this title
(relating to Procedures in Contested Cases).
(e) Filing proof of insurance with the department.
(A) A motor carrier shall file and maintain proof of
automobile liability insurance for all vehicles required to be registered
under this subchapter at all times. This proof shall be filed on a
form acceptable to the director.
(B) A household goods carrier shall also file and maintain
proof of cargo insurance for its cargo at all times. This proof shall
be on a form acceptable to the director.
(2) Filing proof of insurance. A motor carrier's insurer
shall file and maintain proof of insurance on a form acceptable to
(A) at the time of the original application for motor
carrier certificate of registration;
(B) on or before the cancellation date of the insurance
coverage as described in subsection (f) of this section;
(C) when the motor carrier changes insurers;
(D) when the motor carrier asks to retain the certificate
number of a revoked certificate of registration;
(E) when the motor carrier changes its name under §218.13(e)(2)
of this title (relating to Application for Motor Carrier Registration);
(F) when the motor carrier, under subsection (a) of
this section, changes the classification of the cargo being transported;
(G) when replacing another active insurance filing.
(3) Filing fee. Each certificate of insurance or proof
of financial responsibility filed with the department for the coverage
required under this section shall be accompanied by a nonrefundable
filing fee of $100. This fee applies both when the carrier submits
an original application and when the carrier submits a supplemental
application when retaining a revoked certificate of registration number.
(4) Acceptable filings. The motor carrier's insurer
must file proof of insurance with the department in a form prescribed
by the department and approved by an authorized agent of the insurer.
(f) Cancellation of insurance coverage. Except when
replaced by another acceptable form of insurance coverage or proof
of financial responsibility approved by the department, no insurance
coverage shall be canceled or withdrawn until 30 days after notice
has been given to the department by the insurer in a form approved
by the department. Nonetheless, proof of insurance coverage for a
seven day or 90 day certificate of registration may be canceled by
the insurer without 30 days' notice if the certificate of registration
is expired, suspended, or revoked, and the insurer provides a cancellation
date on the proof of insurance coverage.
(g) Replacement insurance filing. The department will
consider a new insurance filing as the current record of financial
responsibility required by this section if:
(1) the new insurance filing is received by the department;
(2) a cancellation notice has not been received for
previous insurance filings.
(h) Insolvency of insurance carrier. If the insurer
of a motor carrier becomes insolvent or becomes involved in a receivership
or other insolvency proceeding, the motor carrier must file an affidavit
with the department. The affidavit must be executed by an owner, partner,
or officer of the motor carrier and show that:
(1) no accidents have occurred and no claims have arisen
during the insolvency of the insurance carrier; or
(2) all claims have been satisfied.