601 KAR 1:101. Proof of liability and
cargo insurance.
RELATES TO: KRS 281.655, 281.656, 49
C.F.R. 367, 387
STATUTORY AUTHORITY: KRS 281.655(1)
NECESSITY, FUNCTION, AND CONFORMITY: KRS
281.655(1) authorizes the cabinet to promulgate administrative regulations
requiring the applicant or holder of a certificate or permit to file or have on
file with the cabinet an approved indemnifying bond or insurance policy. This administrative
regulation establishes a system of insurance filings for all motor carriers
operating in intrastate commerce or registered in Kentucky pursuant to the provisions
of 49 C.F.R. Part 367.
Section 1. Proof of Insurance of
Interstate Exempt and Intrastate Motor Carriers. (1)(a) A motor carrier
operating in intrastate for-hire commerce shall file a certificate of insurance
with the cabinet as proof of insurance required by KRS 281.655(1).
(b).the certificate of insurance shall be
written to show the term of the policy to be continuous until cancelled
(2) A certificate of bodily injury and
property damage insurance shall be filed on Uniform Motor Carrier Bodily Injury
and Property Damage Liability Certificate of Insurance, Form E, TC 95-211.
(3) All motor carriers of household goods
shall file proof of cargo insurance on Uniform Motor Carrier Cargo Certificate
of Insurance, Form H, TC 95-212.
(4) A policy of insurance shall be
cancelled by the filing of Uniform Notice of Cancellation of Motor Carrier Insurance
Policies, Form K, TC 95-213
Section 2. Insurance - Interstate
Authorized Carriers. (1) The minimum amounts of liability insurance for a motor
carrier of property or passengers authorized by the Interstate Commerce
Commission shall be governed by 49 C.F.R. 387.9
Section 3. Reinstatement of Insurance. A
motor carrier desiring to file a reinstatement of insurance that has been
cancelled shall file a new certificate of insurance as established in this
administrative regulation.
Section 4. Self-insurers. (1) An
applicant for an exemption as established in KRS 281.655(11) shall file with
the cabinet: (a) An application in petition form;
(b) A balance sheet that reflects the
financial condition of the applicant for the last calendar quarter preceding
the date of the application prepared by a Certified Public Accountant or an accounting
official of the applicant; and
(c) An income statement for the last
calendar quarter preceding the date of the application prepared by a Certified
Public Accountant or an accounting official of the applicant.
(2) An authorized interstate carrier that
has received an order from the Interstate Commerce Commission qualifying the
carrier as self insured may file as an exhibit a certified copy of the order
with its application in lieu of a balance sheet and income statement required
in subsection one (1) of this section.
(3) Based on the financial documents
presented by the applicant, the cabinet shall enter an order granting or
denying the exemption order.
(4) The cabinet may request additional
documents from the applicant:
(a) In order to further clarify the
financial condition of the applicant; or
(b) If an order has been granted by the
cabinet and there is reason to believe the financial condition of the applicant
has changed.
(5) The cabinet shall revoke the
exemption order if the financial condition of the applicant has deteriorated
since the order was entered by the cabinet
Section 5. Incorporation by Reference.
(1) The following material is incorporated by reference:
(a) "Uniform Motor Carrier Bodily
Injury and Property Damage Liability Certificate of Insurance", Form E, TC
95-211, revised April 1988;
(b) "Uniform Motor Carrier Cargo
Certificate of Insurance", Form H, TC 95-212, revised April 1988;
(c) "Uniform Notice of Cancellation
of Motor Carrier Insurance Policies", Form K, TC 95-213, revised April
1988.
(2) This material may be inspected,
copied, or obtained at the Department of Vehicle Regulation, Division of Motor
Carriers, Transportation Cabinet Building, 200 Mero Street, Frankfort, Kentucky
40622, Monday through Friday, 8 a.m. to 4:30 p.m. (20 Ky.R. 1506; Am. 2330;
eff. 2-10-94; 23 Ky.R. 1012; 1592; eff. 10-1-96; 37 Ky.R. 1549; eff. 4-1-2011.)