| (a) Automobile liability insurance requirements. A
motor carrier must file proof of 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
shall carry and maintain automobile liability insurance that is combined
single limit liability for bodily injury to or death of an individual
per occurrence, and loss or damage to property (excluding cargo) per
occurrence. Extraneous information will not be considered acceptable,
and the department may reject proof of 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 is required to register with
the department under Transportation Code, Chapter 643 and operates
a foreign commercial motor vehicle must comply with the minimum level
of financial responsibility in 49 C.F.R. Part 387 for such vehicle.
The department adopts by reference 49 C.F.R. Part 387 regarding the
required level of financial responsibility, including any amendments
that became effective through July 1, 2024.
Attached Graphic
(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 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 is $10,000 for aggregate loss or damage
to multiple shippers’ 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 municipalities shall provide workers'
compensation for all its employees or accidental insurance coverage
in the amounts prescribed in paragraph (2) of this subsection.
(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 for at least 104
weeks;
(B) $100,000 for accidental death and dismemberment;
(C) 70 percent of the employee's pre-injury income
for not less than 104 weeks when compensating for loss of income;
and
(D) $500 for the maximum weekly benefit.
(d) Qualification of motor carrier as self-insured
motor carrier.
(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 motor carrier. 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, or cargo liability,
if applicable, 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 motor carrier.
(2) Applicant guidelines. In addition to filing an
application as prescribed by the department, an applicant for self-insured
status must submit information and documents that will enable 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 shall maintain a sound insurance program
that will protect the public against all claims involving motor vehicles
to the same extent as the minimum insurance levels applicable under
this section. In determining whether an applicant is maintaining a
sound insurance program, the department shall consider:
(i) reserves;
(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 a current "satisfactory" safety rating from the Texas Department
of Public Safety under Transportation Code, Chapter 644 and administrative
rules adopted under Transportation Code, Chapter 644 or a "satisfactory"
safety rating from FMCSA under federal law. An application by a motor
carrier with less than a current "satisfactory" safety rating or no
safety rating will be summarily denied.
(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 approved self-insured motor
carrier shall file with the department annual statements and any reports
required by the department reflecting the motor carrier’s financial
condition and the status of its self-insurance program while the motor
carrier is self-insured.
(5) Duration and coverage of self-insured status. The
department may approve an applicant as a self-insured motor carrier
for any specific time or for an indefinite time. An approved self-insured
status only applies to the type of cargo that the motor carrier reported
to the department in the application for self-insured status, and
is subject to any limitations, restrictions, or requirements that
the department includes in any letter approving 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 motor carrier to provide
additional information and documents. On 10 days' notice from the
department, the self-insured motor carrier shall provide the department
with information and documents, as applicable, that demonstrate that
it remains in compliance with the requirements of this section and
of any active self-insurance requirements included in the department's
approval letter. If a motor carrier fails to comply with the applicable
requirements under this section, its self-insured status may be revoked.
The revocation of self-insured status will be governed by Chapter
224 of this title (relating to Adjudicative Practice and Procedure)
and Transportation Code, Chapter 643.
(7) Appeal of denial of application for self-insured
status. An applicant may appeal a denial of self-insured status by
filing an appeal in accordance with §224.126 of this title (relating
to Appeal of a Denial of Self-Insured Status).
(e) Filing proof of insurance with the department.
(1) Forms.
(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
the director:
(A) at the time of the original application for a 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;
and
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