12.3 Motor Carrier / Trucking and MCS-90

Arkansas Property & Casualty Insurance State

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1 Standalone Coverage Map

Standalone Coverage Map

2 Introduction: Arkansas Property & Casualty Insurance Exam Overview

Arkansas Property & Casualty Exam Overview

3 National Portion: Insurance Fundamentals

1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority

4 National Portion: Property Insurance Concepts

2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses

5 National Portion: Dwelling Policies (DP)

3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage

6 National Portion: Homeowners Policies - Forms & Section I

4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners

7 National Portion: Homeowners Policies - Section II & Endorsements

5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)

8 National Portion: Personal Auto Policy - Liability & Injury

6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists

9 National Portion: Personal Auto Policy - Physical Damage & Duties

7.1 Part D: Coverage for Damage to Your Auto 7.2 Exclusions and Part E: Duties After an Accident 7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts

10 National Portion: Liability Insurance Concepts

8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

11 National Portion: Commercial Property Insurance

9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP

12 National Portion: Commercial General Liability - Coverages

10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments

13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions

11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements

14 National Portion: Commercial Auto Insurance

12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements

15 National Portion: Workers Compensation

13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements

16 National Portion: Other Commercial Lines - BOP, Crime & Marine

14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)

17 National Portion: Other Commercial Lines - Specialty & Professional

15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability

18 National Portion: Other Commercial Lines - Surety, Flood & Specialty

16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines

19 National Portion: Insurance Regulation & Market Conduct

17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations

20 National Portion: Ethics & Unfair Trade Practices

18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection

21 Chapter 1: Arkansas P&C Insurance Regulation & Licensing

1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities

22 Chapter 2: Arkansas Property Insurance

2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance

23 Chapter 3: Arkansas Casualty & Auto Insurance

3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance

24 Chapter 4: Arkansas Ethics & Professional Conduct

4.1 Ethical Practices and Consumer Protection

12.3 Motor Carrier / Trucking and MCS-90

Key Takeaways Explain This Topic AI

The Motor Carrier Coverage Form (CA 00 20) replaces the BAP for interstate for-hire haulers; the older Truckers form is CA 00 12.

Trailer interchange coverage insures legal liability for physical damage to non-owned trailers held under written interchange agreements.

The MCS-90 is a federally mandated public-protection (financial-responsibility) endorsement, not ordinary coverage.

The insurer that pays an MCS-90 claim the policy did not cover may seek reimbursement from the insured.

Federal minimums: $750,000 general freight, $1,000,000 oil/hazardous substances, $5,000,000 bulk hazmat or large passenger carriers.

Last updated: June 2026

The Motor Carrier Coverage Form (CA 00 20)

When a business hauls property or passengers for others for hire across state or interstate routes, the Business Auto form is usually replaced by the Motor Carrier Coverage Form (ISO CA 00 20) or the older Truckers Coverage Form (CA 00 12) . The Motor Carrier form adapts the BAP for federal regulation under the FMCSA (Federal Motor Carrier Safety Administration) and the older ICC/MCS rules.

The Motor Carrier form uses the same covered auto symbols with additions, most importantly Symbol 67 (all owned autos plus trailers and equipment you do not own while attached) and trailer-interchange concepts. It also addresses the unique exposure of pulling non-owned trailers under trailer interchange agreements .

Trailer interchange and Section coverage

Trailer Interchange Coverage insures the policyholder's legal liability for physical damage to a non-owned trailer in their possession under a written interchange agreement—comprehensive, specified causes of loss, or collision can each be selected per trailer.

The form clarifies who is an insured when a tractor (truck) and trailer owned by different parties are coupled—the tractor's liability policy generally follows the unit.

Bobtailing / deadheading: when an owner-operator drives a tractor with no trailer attached ("bobtail") or with an empty trailer not under dispatch ("deadhead"), the carrier's filed policy may exclude that use—non-trucking-use ("bobtail") liability is bought separately. This is a heavily tested gap because the trucker is between loads and not technically in the carrier's business.

Watch the leasing trap: under federal leasing rules, a carrier that leases an owner-operator's rig is treated as the statutory employer , so the carrier's policy (and MCS-90) follows the placarded vehicle even though the driver owns it.

• Form Use Federal hook
• CA 00 01 Business Auto Local/general business autos None directly
• CA 00 20 Motor Carrier For-hire interstate haulers FMCSA / MCS-90
• CA 00 12 Truckers Older for-hire trucking ICC legacy

The MCS-90 Endorsement

The MCS-90 (Motor Carrier Act Endorsement) is a federally mandated financial-responsibility endorsement , NOT ordinary insurance coverage. It is required of interstate for-hire motor carriers to guarantee that the public is paid for bodily injury, property damage, and environmental restoration caused by negligent operation, even if the policy would otherwise exclude the loss.

Critical exam points:

The MCS-90 is a suretyship-like public protection . If the insurer pays a claim under the MCS-90 that the underlying policy did not actually cover, the insurer has a right of reimbursement from the insured .

It responds only to public (third-party) claims, not to the carrier's own property.

It does not increase the policy limit between insurer and insured; it guarantees the statutory minimum to the public.

The MCS-90 does not require a specific covered auto to be involved—courts have applied it to vehicles not even on the policy schedule, because its purpose is public protection, not asset insurance. It cannot be cancelled without 35 days' written notice to the FMCSA, a frequent exam fact.

A related federal filing is the Form BMC-91/91X , the insurer's certificate of financial responsibility filed with the FMCSA evidencing the MCS-90 limits are in force. Intrastate-only carriers are governed by state financial-responsibility law instead, so the federal minimums above may not apply.

Federal minimum financial-responsibility limits

Federal minimums under the MCS-90 depend on what is hauled:

• Cargo type Minimum limit
• Non-hazardous property, GVWR 10,001+ lbs $750,000
• Oil / certain hazardous substances $1,000,000
• Hazardous materials (explosives, gases, large bulk) $5,000,000
• For-hire passengers (16+ seats) $5,000,000
• For-hire passengers (15 or fewer seats) $1,500,000

Trap: The familiar $750,000 figure applies to general freight. Candidates often wrongly pick $750,000 for hazmat—hazmat is $1,000,000 or $5,000,000. Also remember the MCS-90 limit is the public-protection floor ; the policy's own CSL may be higher.

MCS-90 vs. the Underlying Policy — Reading the Difference

Candidates routinely confuse the MCS-90 with the trucker's actual insurance. They operate on different planes:

• Feature Underlying BAP/Motor Carrier policy MCS-90 endorsement
• Protects The insured (and third parties within coverage) The public only
• Pays when policy excludes the loss No Yes , then seeks reimbursement
• Limit The negotiated CSL The statutory minimum
• Cancellation notice to FMCSA Per policy/state 35 days written notice
• Reimbursement from insured N/A Required if loss was not truly covered

Quick Answer: The MCS-90 is a public-protection guarantee, not coverage for the trucker. If it pays a loss the policy excluded, the insurer recovers that money from the motor carrier.

Bobtail, Non-Trucking Use, and the Statutory-Employer Trap

The biggest real-world gap for owner-operators is non-trucking use (bobtail) liability . While a tractor is being driven without a trailer and not under dispatch, the carrier's filed policy and MCS-90 may not respond, so the owner-operator buys a separate bobtail/non-trucking-use policy. Conversely, under federal leasing rules the carrier is the statutory employer of a leased owner-operator, so the carrier's policy and MCS-90 follow the placarded vehicle even though the driver owns the rig and even if the specific unit is not on the schedule.

Examiners pair these two ideas: in-dispatch use falls on the carrier (statutory employer); off-dispatch bobtail use falls on the owner-operator's separate policy. Knowing which side of the dispatch line the loss occurs on is the key to the answer.