
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 49USC13906]

 
                        TITLE 49--TRANSPORTATION
 
                 SUBTITLE IV--INTERSTATE TRANSPORTATION
 
 PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT FORWARDERS
 
                        CHAPTER 139--REGISTRATION
 
Sec. 13906. Security of motor carriers, brokers, and freight 
        forwarders
        
    (a) Motor Carrier Requirements.--
        (1) Liability insurance requirement.--The Secretary may register 
    a motor carrier under section 13902 only if the registrant files 
    with the Secretary a bond, insurance policy, or other type of 
    security approved by the Secretary, in an amount not less than such 
    amount as the Secretary prescribes pursuant to, or as is required 
    by, sections 31138 and 31139, and the laws of the State or States in 
    which the registrant is operating, to the extent applicable. The 
    security must be sufficient to pay, not more than the amount of the 
    security, for each final judgment against the registrant for bodily 
    injury to, or death of, an individual resulting from the negligent 
    operation, maintenance, or use of motor vehicles, or for loss or 
    damage to property (except property referred to in paragraph (3) of 
    this subsection), or both. A registration remains in effect only as 
    long as the registrant continues to satisfy the security 
    requirements of this paragraph.
        (2) Agency requirement.--A motor carrier shall comply with the 
    requirements of sections 13303 and 13304. To protect the public, the 
    Secretary may require any such motor carrier to file the type of 
    security that a motor carrier is required to file under paragraph 
    (1) of this subsection. This paragraph only applies to a foreign 
    motor private carrier and foreign motor carrier operating in the 
    United States to the extent that such carrier is providing 
    transportation between places in a foreign country or between a 
    place in one foreign country and a place in another foreign country.
        (3) Transportation insurance.--The Secretary may require a 
    registered motor carrier to file with the Secretary a type of 
    security sufficient to pay a shipper or consignee for damage to 
    property of the shipper or consignee placed in the possession of the 
    motor carrier as the result of transportation provided under this 
    part. A carrier required by law to pay a shipper or consignee for 
    loss, damage, or default for which a connecting motor carrier is 
    responsible is subrogated, to the extent of the amount paid, to the 
    rights of the shipper or consignee under any such security.

    (b) Broker Requirements.--The Secretary may register a person as a 
broker under section 13904 only if the person files with the Secretary a 
bond, insurance policy, or other type of security approved by the 
Secretary to ensure that the transportation for which a broker arranges 
is provided. The registration remains in effect only as long as the 
broker continues to satisfy the security requirements of this 
subsection.
    (c) Freight Forwarder Requirements.--
        (1) Liability insurance.--The Secretary may register a person as 
    a freight forwarder under section 13903 of this title only if the 
    person files with the Secretary a bond, insurance policy, or other 
    type of security approved by the Secretary. The security must be 
    sufficient to pay, not more than the amount of the security, for 
    each final judgment against the freight forwarder for bodily injury 
    to, or death of, an individual, or loss of, or damage to, property 
    (other than property referred to in paragraph (2) of this 
    subsection), resulting from the negligent operation, maintenance, or 
    use of motor vehicles by or under the direction and control of the 
    freight forwarder when providing transfer, collection, or delivery 
    service under this part.
        (2) Freight forwarder insurance.--The Secretary may require a 
    registered freight forwarder to file with the Secretary a bond, 
    insurance policy, or other type of security approved by the 
    Secretary sufficient to pay, not more than the amount of the 
    security, for loss of, or damage to, property for which the freight 
    forwarder provides service.
        (3) Effective period.--The freight forwarder's registration 
    remains in effect only as long as the freight forwarder continues to 
    satisfy the security requirements of this subsection.

    (d) Type of Insurance.--The Secretary may determine the type and 
amount of security filed under this section. A motor carrier may submit 
proof of qualifications as a self-insurer to satisfy the security 
requirements of this section. The Secretary shall adopt regulations 
governing the standards for approval as a self-insurer. Motor carriers 
which have been granted authority to self-insure as of January 1, 1996, 
shall retain that authority unless, for good cause shown and after 
notice and an opportunity for a hearing, the Secretary finds that the 
authority must be revoked.
    (e) Notice of Cancellation of Insurance.--The Secretary shall issue 
regulations requiring the submission to the Secretary of notices of 
insurance cancellation sufficiently in advance of actual cancellation so 
as to enable the Secretary to promptly revoke the registration of any 
carrier or broker after the effective date of the cancellation.
    (f) Form of Endorsement.--The Secretary shall also prescribe the 
appropriate form of endorsement to be appended to policies of insurance 
and surety bonds which will subject the insurance policy or surety bond 
to the full security limits of the coverage required under this section.

(Added Pub. L. 104-88, title I, Sec. 103, Dec. 29, 1995, 109 Stat. 885; 
amended Pub. L. 104-287, Sec. 5(34), Oct. 11, 1996, 110 Stat. 3392.)


                            Prior Provisions

    Provisions similar to those in this section were contained in 
section 10927 of this title prior to the general amendment of this 
subtitle by Pub. L. 104-88, Sec. 102(a).


                               Amendments

    1996--Subsec. (d). Pub. L. 104-287 substituted ``January 1, 1996,'' 
for ``the effective date of this section''.


                          Self-Insurance Rules

    Section 104(h) of Pub. L. 104-88 provided that: ``The Secretary of 
Transportation shall continue to enforce the rules and regulations of 
the Interstate Commerce Commission, as in effect on July 1, 1995, 
governing the qualifications for approval of a motor carrier as a self-
insurer, until such time as the Secretary finds it in the public 
interest to revise such rules. The revised rules must provide for--
        ``(1) continued ability of motor carriers to qualify as self-
    insurers; and
        ``(2) the continued qualification of all carriers then so 
    qualified under the terms and conditions set by the Interstate 
    Commerce Commission or Secretary at the time of qualification.''
    [Interstate Commerce Commission abolished by section 101 of Pub. L. 
104-88, set out as a note under section 701 of this title.]

                  Section Referred to in Other Sections

    This section is referred to in sections 13902, 13904, 13905, 13908, 
14707, 31102 of this title.
