CTB Carrier Selection & Risk Management 3

Question 1

A carrier operating under a lease agreement with an owner-operator causes an accident. Under FMCSA regulations, who bears primary liability?

Accepted Answer

The authorized carrier whose operating authority is being used

Answer

Under 49 CFR Part 376, the authorized carrier (lessee) bears primary liability for accidents involving leased equipment because the carrier's authority covers the operation.

Question 2

Which of the following best describes 'double brokering' and its primary risk to a freight broker?

Accepted Answer

A carrier re-tenders the load to another carrier without the broker's consent, creating unauthorized liability exposure

Answer

Double brokering occurs when a carrier passes the load to another carrier without authorization, voiding insurance coverage and exposing the originating broker to uninsured cargo claims.

Question 3

When evaluating a new carrier, which combination of resources provides the most comprehensive safety profile?

Accepted Answer

FMCSA SAFER system, SMS BASICs, and carrier references

Answer

Cross-referencing SAFER authority data, SMS BASIC scores for behavioral trends, and peer references gives a complete picture of the carrier's regulatory standing and operational reputation.

Question 4

A broker's carrier agreement should contain a clause requiring the carrier to name the broker as what on its cargo insurance policy?

Accepted Answer

Additional insured or certificate holder

Answer

Requiring the broker to be listed as an additional insured or certificate holder ensures the broker receives notice of policy cancellations and can verify active coverage.

Question 5

Under 49 CFR Part 387, what is the minimum public liability insurance requirement for a for-hire carrier transporting non-hazardous general freight in vehicles over 10,001 lbs. GVWR?

Accepted Answer

$750,000

Answer

FMCSA requires a minimum of $750,000 in public liability coverage for non-hazardous general freight transported in vehicles weighing over 10,001 lbs. GVWR.

(CTB) Certified Transportation Broker Practice Test

(CTB) Certified Transportation Broker Practice Test

CTB Carrier Selection & Risk Management 3