Ask X3What does 49 CFR 387.37 (Fiduciaries) require?
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Short answer
49 CFR 387.37 requires that the coverage of fiduciaries attach at the moment of succession of such fiduciaries.
The rule says
"The coverage of fiduciaries shall attach at the moment of succession of such fiduciaries." (49 CFR 387.37)
In plain English
This means that when a fiduciary takes over, the insurance coverage or financial responsibility requirements must be in place immediately, with no gap in coverage. In practice, this ensures that the new fiduciary has the necessary financial backing to operate safely and responsibly from the start.
What to do
- Review your insurance policies or surety bonds to ensure they include fiduciary coverage.
- Verify that your coverage attaches immediately upon succession.
- Confirm that your policies or bonds meet the minimum financial responsibility requirements.
- Update your records to reflect any changes in fiduciary coverage.