CTB Carrier Selection & Risk Management 2

Question 1

A broker discovers that a carrier's operating authority was revoked two weeks ago but the carrier is still accepting loads. What is the broker's primary obligation?

Accepted Answer

Notify FMCSA immediately and refuse to tender the load

Answer

Brokers must verify active operating authority before each load tender; using a carrier with revoked authority exposes the broker to liability and violates federal regulations.

Question 2

Which FMCSA safety rating indicates that a carrier has been found to have critical safety violations that could result in service suspension?

Accepted Answer

Unsatisfactory

Answer

An 'Unsatisfactory' safety rating means the carrier has failed to comply with safety standards and may be ordered out of service by FMCSA.

Question 3

A carrier has a satisfactory FMCSA safety rating but a poor Carrier Safety Measurement System (SMS) score in the Hours of Service BASIC. How should a broker interpret this?

Accepted Answer

SMS data can indicate emerging risk even when the formal rating is satisfactory

Answer

SMS BASIC scores provide real-time behavioral data and can reveal risk trends that lag behind the periodic formal safety rating reviews.

Question 4

What minimum cargo insurance limit do most shippers and brokers require carriers to carry per standard industry practice?

Accepted Answer

$100,000

Answer

The industry standard minimum for carrier cargo insurance is $100,000 per occurrence, though high-value or specialized freight often requires higher limits.

Question 5

A shipper insists on using a specific carrier that the broker knows has multiple at-fault accidents in the past 12 months. What is the best course of action?

Accepted Answer

Document the shipper's request and the safety concerns in writing, then let the shipper decide

Answer

Brokers should document safety concerns and communicate them to the shipper in writing to demonstrate due diligence, while the shipper retains the right to make the final selection.

(CTB) Certified Transportation Broker Practice Test

(CTB) Certified Transportation Broker Practice Test

CTB Carrier Selection & Risk Management 2