Ask X3What does 49 CFR 387.409 (Insurance and surety companies) require?
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According to 49 CFR 387.409, the FMCSA will only accept a certificate of insurance or surety bond if it is issued by an insurance or surety company that is authorized (licensed or admitted) to issue bonds or underlying insurance policies in one of the following ways:
1. In every State where your freight-forwarding service is authorized by the FMCSA to operate; or
2. In the State where your principal place of business or domicile is located, provided the company also designates in writing—upon FMCSA request—a person to accept legal process (court papers) for any legal proceedings brought in any State where you perform service; or
3. In any State, as long as the company is eligible as an excess or surplus lines insurer in any State where business is written, and it makes the required designation of a process agent; or
4. For Canadian freight forwarders, in the Canadian Province or Territory where your principal place of business or domicile is located, provided you also designate in writing—upon FMCSA request—a person to accept legal process for any legal proceedings brought in any State where you operate.