What does 49 CFR 387.27 (Applicability) require?

Short answer

49 CFR 387.27 applies to for-hire motor carriers transporting passengers in interstate or foreign commerce, with exceptions for certain vehicles and operations. The rule requires these carriers to maintain minimum levels of financial responsibility.

The rule says

"This subpart applies to for-hire motor carriers transporting passengers in interstate or foreign commerce." (49 CFR 387.27(a))

"The rules in this subpart do not apply to (1) A motor vehicle transporting only school children and teachers to or from school; (2) A motor vehicle providing taxicab service and having a seating capacity of less than 7 passengers and not operated on a regular route or between specified points; (3) A motor vehicle carrying less than 16 individuals in a single daily round trip to commute to and from work; and (4) A motor vehicle operated by a motor carrier under contract providing transportation of preprimary, primary, and secondary students for extracurricular trips organized, sponsored, and paid by a school district." (49 CFR 387.27(b))

In plain English

This rule is about making sure that companies that transport people for a fee have enough money to cover potential accidents or other liabilities. It applies to most companies that transport people across state or international borders, but there are some exceptions for things like school buses, taxis, and commuter vans. The idea is to protect the public by ensuring that these companies have sufficient financial resources in case something goes wrong.

What to do

• Review your company's financial situation to ensure you meet the minimum levels of financial responsibility required by the rule.
• Check if your operations fall under any of the exceptions listed in the rule.
• Verify that you have the necessary insurance coverage or other financial arrangements in place to comply with the rule.
• Consult with a regulatory expert or attorney if you are unsure about how the rule applies to your company.