What does 49 CFR 387.31 (Financial responsibility required) require?

Short answer

49 CFR 387.31 requires motor carriers transporting passengers to obtain and maintain minimum levels of financial responsibility. The minimum levels are set forth in 387.33 of this subpart.

The rule says

"No motor carrier shall operate a motor vehicle transporting passengers until the motor carrier has obtained and has in effect the minimum levels of financial responsibility as set forth in 387.33 of this subpart." (49 CFR 387.31(a))

"Policies of insurance, surety bonds, and endorsements required under this section shall remain in effect continuously until terminated." (49 CFR 387.31(b))

1. "Cancellation may be effected by the insurer or the insured motor carrier giving 35 days' notice in writing to the other." (49 CFR 387.31(b)(1))

2. "Exception. Policies of insurance and surety bonds may be obtained for a finite period of time to cover any lapse in continuous compliance." (49 CFR 387.31(b)(2))

(49 CFR 387.31)

In plain English

This rule means that passenger-carrying motor carriers must have insurance or surety bonds in place to cover potential accidents or injuries. The insurance must be continuous, but there are exceptions for temporary coverage or replacement policies. Motor carriers must also maintain proof of financial responsibility at their principal place of business and make it available for inspection. In practice, this means that motor carriers need to carefully manage their insurance coverage and ensure that they have the required minimum levels of financial responsibility in place at all times.

What to do

• Obtain and maintain minimum levels of financial responsibility as set forth in 387.33.
• Ensure policies of insurance, surety bonds, and endorsements remain in effect continuously until terminated.
• Maintain proof of financial responsibility at the motor carrier's principal place of business.
• Make proof of financial responsibility available for inspection upon reasonable request by a member of the public.