TRIP Documentation & Legal Requirements 3 — Questions and Answers
Question 1: What is the primary purpose of the MCS-90 endorsement attached to a motor carrier's insurance policy?
- It extends cargo coverage to shipper-owned trailers pulled by the carrier
- It certifies minimum public liability coverage to satisfy federal financial responsibility requirements (Correct answer)
- It establishes the carrier's credit rating for freight factoring companies
- It verifies the carrier's Unified Carrier Registration status with each state
Correct answer: It certifies minimum public liability coverage to satisfy federal financial responsibility requirements
The MCS-90 is a mandatory endorsement that ensures the public can collect for bodily injury and property damage caused by the carrier even if policy conditions would otherwise allow the insurer to deny the claim.
Question 2: What minimum public liability insurance is required by FMCSA for a for-hire motor carrier hauling general freight (non-hazmat) in vehicles over 10,001 lbs in interstate commerce?
- $300,000
- $500,000
- $750,000 (Correct answer)
- $1,000,000
Correct answer: $750,000
FMCSA regulations (49 CFR Part 387) require a minimum of $750,000 in public liability coverage for for-hire carriers transporting non-hazardous general commodities in vehicles over 10,001 lbs.
Question 3: The BMC-84 form filed with the FMCSA is associated with which regulated entity?
- Motor carriers certifying public liability insurance
- Property freight brokers filing a surety bond (Correct answer)
- Household goods carriers certifying cargo liability
- Motor carriers certifying cargo insurance coverage
Correct answer: Property freight brokers filing a surety bond
The BMC-84 is the surety bond form used by property freight brokers and freight forwarders to satisfy the $75,000 financial security requirement mandated by MAP-21.
Question 4: Under the Unified Carrier Registration (UCR) agreement, where do interstate motor carriers register and pay their annual fees?
- In their state of domicile (base state) (Correct answer)
- In each state where they operate
- Only with the FMCSA national database
- In the state generating the most revenue for that carrier
Correct answer: In their state of domicile (base state)
Under UCR, carriers register in their state of domicile (or a designated state if their state does not participate), and fees collected are distributed to participating states.
Question 5: How long must a motor carrier retain accident registers under FMCSA regulations (49 CFR Part 390)?
- 1 year from the date of each accident
- 2 years from the date of each accident
- 3 years from the date of each accident (Correct answer)
- 5 years from the date of each accident
Correct answer: 3 years from the date of each accident
FMCSA regulations require motor carriers to maintain accident registers for a minimum of three years from the date of each recordable accident.
Question 6: Which FMCSA form (BMC-91 or BMC-91X) must a motor carrier file to certify its public liability insurance or surety bond to obtain or maintain operating authority?
- BMC-91 for insurance; BMC-91X for a surety bond (Correct answer)
- BMC-91X for insurance; BMC-91 for a surety bond
- BMC-91 for both insurance and surety bonds
- BMC-91X for both insurance and surety bonds
Correct answer: BMC-91 for insurance; BMC-91X for a surety bond
BMC-91 is the certificate filed by an insurer on behalf of the carrier to certify insurance coverage, while BMC-91X is filed by a surety company to certify a surety bond.
Question 7: Under the International Fuel Tax Agreement (IFTA), carriers are required to retain fuel tax records for a minimum of:
- 1 year
- 2 years
- 3 years
- 4 years (Correct answer)
Correct answer: 4 years
IFTA requires carriers to retain fuel purchase records, trip reports, and distance records for four years, as audits can cover prior quarters within that window.
TRIP Documentation & Legal Requirements 3
What is the primary purpose of the MCS-90 endorsement attached to a motor carrier's insurance policy?