601 KAR 1:101. Proof of liability and cargo insurance.

 

       RELATES TO: KRS 281.655, 281.656, 49 C.F.R. 367, 387

      STATUTORY AUTHORITY: KRS 281.655(1)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 281.655(1) authorizes the cabinet to promulgate administrative regulations requiring the applicant or holder of a certificate or permit to file or have on file with the cabinet an approved indemnifying bond or insurance policy. This administrative regulation establishes a system of insurance filings for all motor carriers operating in intrastate commerce or registered in Kentucky pursuant to the provisions of 49 C.F.R. Part 367.

 

      Section 1. Proof of Insurance of Interstate Exempt and Intrastate Motor Carriers. (1)(a) A motor carrier operating in intrastate for-hire commerce shall file a certificate of insurance with the cabinet as proof of insurance required by KRS 281.655(1).

      (b).the certificate of insurance shall be written to show the term of the policy to be continuous until cancelled

      (2) A certificate of bodily injury and property damage insurance shall be filed on Uniform Motor Carrier Bodily Injury and Property Damage Liability Certificate of Insurance, Form E, TC 95-211.

      (3) All motor carriers of household goods shall file proof of cargo insurance on Uniform Motor Carrier Cargo Certificate of Insurance, Form H, TC 95-212.

      (4) A policy of insurance shall be cancelled by the filing of Uniform Notice of Cancellation of Motor Carrier Insurance Policies, Form K, TC 95-213

 

      Section 2. Insurance - Interstate Authorized Carriers. (1) The minimum amounts of liability insurance for a motor carrier of property or passengers authorized by the Interstate Commerce Commission shall be governed by 49 C.F.R. 387.9

 

      Section 3. Reinstatement of Insurance. A motor carrier desiring to file a reinstatement of insurance that has been cancelled shall file a new certificate of insurance as established in this administrative regulation.

 

      Section 4. Self-insurers. (1) An applicant for an exemption as established in KRS 281.655(11) shall file with the cabinet:       (a) An application in petition form;

      (b) A balance sheet that reflects the financial condition of the applicant for the last calendar quarter preceding the date of the application prepared by a Certified Public Accountant or an accounting official of the applicant; and

      (c) An income statement for the last calendar quarter preceding the date of the application prepared by a Certified Public Accountant or an accounting official of the applicant.

      (2) An authorized interstate carrier that has received an order from the Interstate Commerce Commission qualifying the carrier as self insured may file as an exhibit a certified copy of the order with its application in lieu of a balance sheet and income statement required in subsection one (1) of this section.

      (3) Based on the financial documents presented by the applicant, the cabinet shall enter an order granting or denying the exemption order.

      (4) The cabinet may request additional documents from the applicant:

      (a) In order to further clarify the financial condition of the applicant; or

      (b) If an order has been granted by the cabinet and there is reason to believe the financial condition of the applicant has changed.

      (5) The cabinet shall revoke the exemption order if the financial condition of the applicant has deteriorated since the order was entered by the cabinet

 

      Section 5. Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "Uniform Motor Carrier Bodily Injury and Property Damage Liability Certificate of Insurance", Form E, TC 95-211, revised April 1988;

      (b) "Uniform Motor Carrier Cargo Certificate of Insurance", Form H, TC 95-212, revised April 1988;

      (c) "Uniform Notice of Cancellation of Motor Carrier Insurance Policies", Form K, TC 95-213, revised April 1988.

      (2) This material may be inspected, copied, or obtained at the Department of Vehicle Regulation, Division of Motor Carriers, Transportation Cabinet Building, 200 Mero Street, Frankfort, Kentucky 40622, Monday through Friday, 8 a.m. to 4:30 p.m. (20 Ky.R. 1506; Am. 2330; eff. 2-10-94; 23 Ky.R. 1012; 1592; eff. 10-1-96; 37 Ky.R. 1549; eff. 4-1-2011.)