What does 49 CFR 387.5 (Definitions) require?

Short answer

49 CFR 387.5 defines terms used in the subpart, including "Accident", "Bodily injury", "Cancellation of insurance", and "Financial responsibility".

1. Accident includes continuous or repeated exposure to the same conditions resulting in public liability.

2. Bodily injury means injury to the body, sickness, or disease including death resulting from any of these.

3. Cancellation of insurance means the withdrawal of insurance coverage by either the insurer or the insured.

4. Financial responsibility means the financial reserves sufficient to satisfy liability amounts set forth in this subpart covering public liability.

The rule says

"Accident includes continuous or repeated exposure to the same conditions resulting in public liability which the insured neither expected nor intended." (49 CFR 387.5)

"Bodily injury means injury to the body, sickness, or disease including death resulting from any of these." (49 CFR 387.5)

"Financial responsibility means the financial reserves (e.g., insurance policies or surety bonds) sufficient to satisfy liability amounts set forth in this subpart covering public liability." (49 CFR 387.5)

In plain English

These definitions are crucial for motor carriers to understand their financial responsibility requirements. The terms defined in 49 CFR 387.5 provide the basis for determining the minimum levels of financial responsibility that motor carriers must maintain to operate. For example, the definition of "Accident helps motor carriers understand what types of incidents may trigger public liability, while the definition of .Financial responsibility" outlines the financial reserves required to cover such liability. Motor carriers must ensure they have the necessary insurance coverage or surety bonds to satisfy these liability amounts.

What to do

• Review the definitions in 49 CFR 387.5 to understand the terms used in the subpart.
• Ensure you have the necessary insurance coverage or surety bonds to satisfy the minimum levels of financial responsibility.
• Verify that your insurance policies or surety bonds cover the types of accidents and bodily injuries defined in 49 CFR 387.5.
• Consult with a regulatory expert or attorney to ensure compliance with the financial responsibility requirements.