Subject 515-16-11 MOTOR CARRIER INSURANCE
This chapter describes the requirements for insurance or
other surety required for motor carriers engaged in intrastate, interstate, or
foreign commerce.
The criminal and civil penalties for violation of this
Chapter are those set forth in O.C.G.A. §§ 46-2-90
through
46-2-93,
46-7-39, 46-7-90 and 46-7-91, and in Chapters 515-16-3 and 515-16-10 of these
Transportation Rules; and such penalties can only be imposed by the Commission
after notice and hearing, unless the violator consents in writing to such
penalties.
| (1) |
No certificate or permit shall be issued
or continued in operation unless the applicant or holder shall give and
maintain bond, with adequate security, for the protection, in case of passenger
vehicles, of the passengers and baggage carried and of the public against
injury proximately caused by the negligence of such motor common or contract
carrier, its servants, or its agents. In cases of vehicles transporting
freight, the applicant or holder shall give bond, with adequate security, to
secure the owner or person entitled to recover therefore against loss or damage
to such freight for which the motor common or contract carrier may be legally
liable and for the protection of the public against injuries proximately caused
by the negligence of such motor carrier, its servants, or its agents. |
| (2) |
The Commission shall approve, determine,
and fix the amount of such bonds and shall prescribe the provisions and
limitations thereof; and such bonds shall be for the benefit of and subject to
action thereon by any person who shall sustain actionable injury or loss
protected thereby. |
| (3) |
The
Commission may, in its discretion, allow the filing of a certificate of
insurance on forms prescribed by the Commission, in lieu of such bond,
evidencing a policy of indemnity insurance in some indemnity insurance company
authorized to do business in this state, which policy must substantially
conform to all of the provisions of this article relating to bonds. The insurer
shall file such certificate. The failure to file any form required by the
Commission shall not diminish the rights of any person to pursue an action
directly against a motor carrier's insurer. |
| (4) |
It shall be permissible under this rule
for any person having a cause of action arising under this rule in tort or
contract to join in the same action the motor carrier and its surety, in the
event a bond is given. If a policy of indemnity insurance is given in lieu of
bond, it shall be permissible to join the motor carrier and the insurance
carrier in the same action, whether arising in tort or contract. |
| (5) |
The liability of the insurance or bonding
company on each motor vehicle for the following minimum limits shall be a
continuing one notwithstanding any recovery hereunder:
SCHEDULE OF LIMITS
|
Kind of equipment
|
Limit for bodily injury to or death
of one person:
|
Limit of bodily injuries to or death
of all persons injured or killed in any one accident (subject to a maximum of
$100,000 for bodily injuries to or death of one person):
|
Limit for loss or damage in any one
accident to property of others (excluding cargo):
|
|
Passenger equipment
(seating capacity):
12 passengers or less
Over 12 passengers
|
$100,000.00
$100,000.00
|
$300,000.00
$500,000.00
|
$50,000.00
$50,000.00
|
|
Freight equipment:
All motor vehicles used in the transportation of
property
|
$100,000.00
|
$300,000.00
|
$50,000.00
|
|
| (1) |
Except as otherwise provided by law no
motor carrier transporting household goods by motor vehicle required to hold a
certificate from the Commission shall engage in intrastate commerce, nor shall
any certificate be issued to such carrier, nor remain in force unless and until
there shall have been filed with and approved by the Commission a surety bond,
policy of insurance (or certificate of insurance in the form prescribed herein
in lieu thereof), or other securities or agreements in not less than the
amounts hereinafter prescribed, conditioned upon such carrier making
compensation to shippers or consignees for all property belonging to shippers
or consignees and coming into the possession of such carrier in connection with
its transportation service within the boundaries of the State of Georgia,
regardless of whether such motor vehicle is described in the policy or
not. |
| (2) |
Within the limits of
liability hereinafter provided it is further required that no condition,
provisions, stipulation, or limitation contained in the policy, or any other
endorsement thereon or violation thereof, or of this rule by the insured, shall
affect in any way the right of any shipper or consignee, or relieve the
insurance or bonding company from liability for the payment of any claim for
which the insured may be held legally liable to compensate shippers or
consignees, irrespective of the financial responsibility or lack thereof or
insolvency or bankruptcy of the insured. However, all terms, conditions, and
limitations in the policy are to remain in full force and effect as binding
between the insured and the insurance or bonding company. |
| (3) |
The liability of the insurance or bonding
company for the following minimum limits shall be a continuing one
notwithstanding any recovery hereunder:
| (a) |
For loss of or damage to property carried on any one motor vehicle.......
$25,000.00 |
| (b) |
For loss of or
damage to aggregate of losses or damage of or to property occurring at any one
time and place........ $50,000.00 |
|
Each certificate of insurance provided by these rules
covering bodily injury liability; property damage liability and cargo liability
filed with the Commission for approval must be for not less than the full
limits of liability required under these rules and regulations and in each case
the insurance company must be legally authorized to transact business in the
State of Georgia.
Certificates of insurance when filed with and accepted by the
Commission are public documents and after cancellation or expiration shall be
retained in the files of the Commission for a period of not less than two years
or such longer time as may be deemed necessary for the protection of the
insured.
| (1) |
Certificates of insurance evidencing
coverage shall be written in the full and correct name of the individual,
partnership, corporation, or other person to whom the certificate, permit, or
license is now or is to be issued. In case of a partnership all partners shall
be named. |
| (2) |
Certificates of
insurance evidencing coverage shall be continuous and NO LAPSE IN INSURANCE
COVERAGE IS PERMITTED. Certificates of insurance evidencing coverage shall be
continuous and shall not be canceled or withdrawn until after thirty (30) days'
notice in writing by the insurance company, surety or sureties, motor carrier,
or other party thereto, as the case may be, has first been given to the
Commission at its offices in Atlanta, Georgia, which period of thirty days
shall commence to run from the date such notice is actually received at the
office of the Commission. Upon receipt of the notice, original stamped copy
will be retained in the files of the Commission as evidence of the date of
cancellation thereof and attached to the certificate of insurance or the surety
bond. Except that the Commission will waive the required thirty (30) days'
notice where a motor carrier elects to substitute a certificate of insurance
evidencing coverage for insurance previously filed by a different insurance
company where such substituted certificate is accompanied by an affidavit of
the motor carrier that substitution has been authorized by the motor carrier
and that waiving of the thirty (30) days' notice is requested for the purpose
of avoiding the payment of double insurance premium. |
| (3) |
Forms:
| (a) |
Form E. Uniform motor
carrier bodily injury and property damage liability certificate of insurance
shall be in "Form E" prescribed by the Commission. |
| (b) |
Form H. Uniform motor
carrier cargo certificate of insurance shall be in "Form H" prescribed by the
Commission. |
| (c) |
Form
K. Uniform notice of cancellation of motor carrier insurance policies
shall be in "Form K" prescribed by the Commission. |
|
The Commission may revoke its approval of any certificate of
insurance, or other securities or agreements if it finds at any time such
security no longer complies with these rules. Any carrier which has its permit
or certificate automatically suspended or revoked can request and receive an
oral hearing before the Commission regarding such Commission action, but such
revoked or suspended certificate or permit will not be reinstated unless and
until acceptable proof of insurance (without lapse) has been received by the
Commission.
