When a new motor carrier applies for operating authority, the insurance company must file the appropriate insurance forms with the Federal Motor Carrier Safety Administration (FMCSA) on the applicant's behalf. This filing is a critical step, as FMCSA will not grant operating authority until the minimum financial responsibility is on file.
An MC number, also known as a docket number, is the operating authority that FMCSA grants to a for-hire motor carrier. A USDOT number, in contrast, identifies a carrier for safety and registration records. To maintain operating authority, a for-hire carrier must continuously keep the required liability insurance on file with FMCSA.
The Insurance Filing Process
According to FMCSA, entities should contact their insurance provider immediately after receiving a docket number. The insurance company then files electronically through an e-Filer account. This account requires an FMCSA Portal account and Login.gov. FMCSA states that applications for an e-Filer account can take up to four weeks to process.
There is a $10 filing fee that applies for each policy filing. If the necessary filings are not made within 20 days of the FMCSA Register publication, the application will be dismissed unless the entity complies within 60 days.
Importance of Maintaining Insurance Filings
Proof of insurance must be kept on file with FMCSA to avoid the revocation of operating authority. If an insurer cancels a policy or the filing lapses, FMCSA can initiate a suspension of the carrier's operating authority. A carrier that receives a suspension notice typically has until a stated deadline to get a valid insurance filing recorded. If this deadline is missed, FMCSA will suspend or revoke the authority.
Insurance agents, brokers, and shippers can check a carrier's authority and insurance-filing status for free using FMCSA public records. These public records, published on data.transportation.gov, include carrier registration, authority, insurance-filing, and suspension-notice data.
TruckMorning processes these FMCSA public records to create a daily list for insurance agents. This list highlights carriers that have experienced changes, such as new registrations, cancellations, renewals, or suspension warnings.
Source: FMCSA insurance requirements