CTB Carrier Selection & Risk Management 4

Question 1

Which FMCSA Safety Measurement System (SMS) BASIC category specifically tracks a carrier's record of driving violations such as speeding and reckless driving?

Accepted Answer

Unsafe Driving

Answer

The Unsafe Driving BASIC captures violations related to speed, lane changes, distracted driving, and other behavior-based offenses recorded during roadside inspections.

Question 2

A broker receives a carrier packet that shows the carrier's MC number but not a DOT number. What conclusion should the broker draw?

Accepted Answer

The packet is incomplete; both numbers are required to verify authority and safety data

Answer

Both the MC (operating authority) and DOT (safety registration) numbers are required for a complete carrier vetting; the DOT number links to SMS safety data and inspection history.

Question 3

What is the primary purpose of including an 'indemnification clause' in a carrier-broker agreement?

Accepted Answer

To allocate financial responsibility for losses, claims, or damages arising from the carrier's negligence

Answer

An indemnification clause specifies that the party responsible for a loss (typically the carrier for freight damage) will defend and compensate the other party for resulting claims.

Question 4

When a carrier's authority has been inactive for fewer than 180 days and they apply for reinstatement, what additional requirement does FMCSA typically impose?

Accepted Answer

Re-filing of insurance and process agent designations

Answer

Carriers reinstating authority must re-file active insurance (Form MCS-90) and process agent designations (BOC-3) since those filings expire when authority lapses.

Question 5

A broker notices a carrier's Crash Indicator BASIC is in the 'Alert' percentile. What does this signal?

Accepted Answer

The carrier has a disproportionately high rate of DOT-recordable crashes compared to peers

Answer

An Alert status in the Crash Indicator BASIC means the carrier's crash rate per miles driven is statistically worse than 75% of carriers in the same category.

(CTB) Certified Transportation Broker Practice Test

(CTB) Certified Transportation Broker Practice Test

CTB Carrier Selection & Risk Management 4