601 KAR 1:101. Proof of liability and cargo insurance

Link to law: http://www.lrc.ky.gov/kar/601/001/101.htm
Published: 2015

      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.)
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