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Chapter 3. Insurance of California Vehicle Code >> Division 14.85. >> Chapter 3.
(a) A motor carrier permit shall not be granted to any motor
carrier of property until there is filed with the department proof
of financial responsibility in the form of a currently effective
certificate of insurance, issued by a company licensed to write that
insurance in this state or by a nonadmitted insurer subject to
Section 1763 of the Insurance Code, if the policy represented by the
certificate meets the minimum insurance requirements contained in
Section 34631.5. The certificate of insurance or surety bond shall
provide coverage with respect to the operation, maintenance, or use
of any vehicle for which a permit is required, although the vehicle
may not be specifically described in the policy, or a bond of surety
issued by a company licensed to write surety bonds in this state, or
written evidence of self-insurance by providing the self-insured
number granted by the department on a form approved by the
department.
(b) Proof of financial responsibility shall be continued in effect during the active life of the motor carrier permit. The certificate of insurance shall not be cancelable on less than 30 days' written notice from the insurer to the department except in the event of cessation of operations as a permitted motor carrier of property.
(c) Whenever the department determines or is notified that the certificate of insurance or surety bond of a motor carrier of property will lapse or be terminated, the department shall suspend the carrier's permit effective on the date of lapse or termination unless the carrier provides evidence of valid insurance coverage pursuant to subdivision (a).
(1) If the carrier's permit is suspended, the carrier shall pay a reinstatement fee as set forth in Section 34623.5, and prior to conducting on-highway operations, present proof of financial responsibility pursuant to subdivision (a) in order to have the permit reinstated.
(2) If the evidence provided by the carrier of valid insurance coverage pursuant to subdivision (a) demonstrates that a lapse in coverage for the carrier's operation did not occur, the reinstatement fee shall be waived.
(b) Proof of financial responsibility shall be continued in effect during the active life of the motor carrier permit. The certificate of insurance shall not be cancelable on less than 30 days' written notice from the insurer to the department except in the event of cessation of operations as a permitted motor carrier of property.
(c) Whenever the department determines or is notified that the certificate of insurance or surety bond of a motor carrier of property will lapse or be terminated, the department shall suspend the carrier's permit effective on the date of lapse or termination unless the carrier provides evidence of valid insurance coverage pursuant to subdivision (a).
(1) If the carrier's permit is suspended, the carrier shall pay a reinstatement fee as set forth in Section 34623.5, and prior to conducting on-highway operations, present proof of financial responsibility pursuant to subdivision (a) in order to have the permit reinstated.
(2) If the evidence provided by the carrier of valid insurance coverage pursuant to subdivision (a) demonstrates that a lapse in coverage for the carrier's operation did not occur, the reinstatement fee shall be waived.
The proof of financial responsibility required under Section
34630 shall be evidenced by the deposit with the department,
covering each vehicle used or to be used under the motor carrier
permit applied for, of one of the following:
(a) A certificate of insurance, issued by a company licensed to write insurance in this state, or by a nonadmitted insurer subject to Section 1763 of the Insurance Code, if the policies represented by the certificate comply with Section 34630 and the rules promulgated by the department pursuant to Section 34604.
(b) A bond of a surety company licensed to write surety bonds in the state.
(c) Evidence of qualification of the carrier as a self-insurer as provided for in subdivision (a) of Section 34630. However, any certificate of self-insurance granted to a motor carrier of property shall be limited to serve as proof of financial responsibility under paragraphs (1) and (2) of subdivision (a) of Section 34631.5 minimum limits only and shall not be acceptable as proof of financial responsibility for the coverage required pursuant to paragraph (3) or (4) of subdivision (a) of Section 34631.5.
(d) Evidence on a form that indicates that coverage is provided by a charitable risk pool operating under Section 5005.1 of the Corporations Code, if the registered owner of the vehicle is a nonprofit organization that is exempt from taxation under paragraph (3) of subsection (c) of Section 501 of the United States Internal Revenue Code. The form shall include all of the following:
(1) The name and address of the motor carrier.
(2) The name and address of the charitable risk pool providing the policy for the motor carrier.
(3) The policy number, effective date, and liability limits of the policy.
(4) A statement from the charitable risk pool that the policy meets the requirements of Section 34631.5.
(a) A certificate of insurance, issued by a company licensed to write insurance in this state, or by a nonadmitted insurer subject to Section 1763 of the Insurance Code, if the policies represented by the certificate comply with Section 34630 and the rules promulgated by the department pursuant to Section 34604.
(b) A bond of a surety company licensed to write surety bonds in the state.
(c) Evidence of qualification of the carrier as a self-insurer as provided for in subdivision (a) of Section 34630. However, any certificate of self-insurance granted to a motor carrier of property shall be limited to serve as proof of financial responsibility under paragraphs (1) and (2) of subdivision (a) of Section 34631.5 minimum limits only and shall not be acceptable as proof of financial responsibility for the coverage required pursuant to paragraph (3) or (4) of subdivision (a) of Section 34631.5.
(d) Evidence on a form that indicates that coverage is provided by a charitable risk pool operating under Section 5005.1 of the Corporations Code, if the registered owner of the vehicle is a nonprofit organization that is exempt from taxation under paragraph (3) of subsection (c) of Section 501 of the United States Internal Revenue Code. The form shall include all of the following:
(1) The name and address of the motor carrier.
(2) The name and address of the charitable risk pool providing the policy for the motor carrier.
(3) The policy number, effective date, and liability limits of the policy.
(4) A statement from the charitable risk pool that the policy meets the requirements of Section 34631.5.
(a) (1) Every motor carrier of property as defined in
Section 34601, except those subject to paragraph (2), (3), or (4),
shall provide and thereafter continue in effect adequate protection
against liability imposed by law upon those carriers for the payment
of damages in the amount of a combined single limit of not less than
seven hundred fifty thousand dollars ($750,000) on account of bodily
injuries to, or death of, one or more persons, or damage to or
destruction of, property other than property being transported by the
carrier for any shipper or consignee whether the property of one or
more than one claimant in any one accident.
(2) Every motor carrier of property, as defined in Section 34601, who operates only vehicles under 10,000 pounds GVWR and who does not transport any commodity subject to paragraph (3) or (4), shall provide and thereafter continue in effect adequate protection against liability imposed by law for the payment of damages caused by bodily injuries to or the death of any person; or for damage to or destruction of property of others, other than property being transported by the carrier, in an amount not less than three hundred thousand dollars ($300,000).
(3) Every intrastate motor carrier of property, as defined in Section 34601, who transports petroleum products in bulk, including waste petroleum and waste petroleum products, shall provide and thereafter continue in effect adequate protection against liability imposed by law upon the carrier for the payment of damages for personal bodily injuries (including death resulting therefrom) in the amount of not less than five hundred thousand dollars ($500,000) on account of bodily injuries to, or death of, one person; and protection against a total liability of those carriers on account of bodily injuries to, or death of more than one person as a result of any one accident, but subject to the same limitation for each person in the amount of not less than one million dollars ($1,000,000); and protection in an amount of not less than two hundred thousand dollars ($200,000) for one accident resulting in damage to or destruction to property other than property being transported by the carrier for any shipper or consignee, whether the property of one or more than one claimant; or a combined single limit in the amount of not less than one million two hundred thousand dollars ($1,200,000) on account of bodily injuries to, or death of, one or more persons or damage to or destruction of property, or both, other than property being transported by the carrier for any shipper or consignee whether the property of one or more than one claimant in any one accident.
(4) Except as provided in paragraph (3), every motor carrier of property, as defined in Section 34601, that transports any hazardous material, as defined by Section 353, shall provide and thereafter continue in effect adequate protection against liability imposed by law on those carriers for the payment of damages for personal injury or death, and damage to or destruction of property, in amounts of not less than the minimum levels of financial responsibility specified for carriers of hazardous materials by the United States Department of Transportation in Part 387 (commencing with Section 387.1) of Title 49 of the Code of Federal Regulations. The applicable minimum levels of financial responsibility required are as follows:
(2) Every motor carrier of property, as defined in Section 34601, who operates only vehicles under 10,000 pounds GVWR and who does not transport any commodity subject to paragraph (3) or (4), shall provide and thereafter continue in effect adequate protection against liability imposed by law for the payment of damages caused by bodily injuries to or the death of any person; or for damage to or destruction of property of others, other than property being transported by the carrier, in an amount not less than three hundred thousand dollars ($300,000).
(3) Every intrastate motor carrier of property, as defined in Section 34601, who transports petroleum products in bulk, including waste petroleum and waste petroleum products, shall provide and thereafter continue in effect adequate protection against liability imposed by law upon the carrier for the payment of damages for personal bodily injuries (including death resulting therefrom) in the amount of not less than five hundred thousand dollars ($500,000) on account of bodily injuries to, or death of, one person; and protection against a total liability of those carriers on account of bodily injuries to, or death of more than one person as a result of any one accident, but subject to the same limitation for each person in the amount of not less than one million dollars ($1,000,000); and protection in an amount of not less than two hundred thousand dollars ($200,000) for one accident resulting in damage to or destruction to property other than property being transported by the carrier for any shipper or consignee, whether the property of one or more than one claimant; or a combined single limit in the amount of not less than one million two hundred thousand dollars ($1,200,000) on account of bodily injuries to, or death of, one or more persons or damage to or destruction of property, or both, other than property being transported by the carrier for any shipper or consignee whether the property of one or more than one claimant in any one accident.
(4) Except as provided in paragraph (3), every motor carrier of property, as defined in Section 34601, that transports any hazardous material, as defined by Section 353, shall provide and thereafter continue in effect adequate protection against liability imposed by law on those carriers for the payment of damages for personal injury or death, and damage to or destruction of property, in amounts of not less than the minimum levels of financial responsibility specified for carriers of hazardous materials by the United States Department of Transportation in Part 387 (commencing with Section 387.1) of Title 49 of the Code of Federal Regulations. The applicable minimum levels of financial responsibility required are as follows:
Combined
Single
Limit
Commodity Transported: Coverage
Oil listed in Section 172.101
of Title 49 of the Code of
Federal Regulations; or
hazardous waste, hazardous
materials and hazardous
substances defined in Section
(A) 171.8 of Title 49 of the Code $1,000,000
of Federal Regulations and
listed in Section 172.101 of
Title 49 of the Code of
Federal Regulations, but not
mentioned in subparagraph (C)
or (D).
Hazardous waste as defined in
Section 25117 of the Health
and Safety Code and in
Article 1 (commencing with
(B) Section 66261.1) of Chapter $1,000,000
11 of Division 4.5 of Title
22 of the California Code of
Regulations, but not
mentioned in subparagraph (C)
or (D).
Hazardous substances, as
defined in Section 171.8 of
Title 49 of the Code of
Federal Regulations, or
(C) liquefied compressed gas or $5,000,000
compressed gas, transported
in cargo tanks, portable
tanks, or hopper-type vehicle
with capacities in excess of
3,500 water gallons.
Any quantity of division 1.1,
1.2, or 1.3 explosives; any
quantity of poison gas
(Poison A); or highway route (D) controlled quantity $5,000,000 radioactive materials as defined in Section 173.403 of Title 49 of the Code of Federal Regulations.
(Poison A); or highway route (D) controlled quantity $5,000,000 radioactive materials as defined in Section 173.403 of Title 49 of the Code of Federal Regulations.
(b) (1) The protection required under subdivision (a) shall be
evidenced by the deposit with the department, covering each vehicle
used or to be used in conducting the service performed by each motor
carrier of property, an authorized certificate of public liability
and property damage insurance, issued by a company licensed to write
the insurance in the State of California, or by a nonadmitted insurer
subject to Section 1763 of the Insurance Code.
(2) The protection required under subdivision (a) by every motor carrier of property engaged in interstate or foreign transportation of property in or through California, shall be evidenced by the filing and acceptance of a department authorized certificate of insurance, or qualification as a self-insurer as may be authorized by law.
(3) A certificate of insurance, evidencing the protection, shall not be cancelable on less than 30 days' written notice to the department, the notice to commence to run from the date notice is actually received at the office of the department in Sacramento.
(4) Every insurance certificate or equivalent protection to the public shall contain a provision that the certificate or equivalent protection shall remain in full force and effect until canceled in the manner provided by paragraph (3).
(5) Upon cancellation of an insurance certificate or the cancellation of equivalent protection authorized by the Department of Motor Vehicles, the motor carrier permit of any motor carrier of property, shall stand suspended immediately upon the effective date of the cancellations.
(6) No carrier shall engage in any operation on any public highway of this state during the suspension of its permit.
(7) No motor carrier of property, whose permit has been suspended under paragraph (5) shall resume operations unless and until the carrier has filed an insurance certificate or equivalent protection in effect at the time and that meets the standards set forth in this section. The operative rights of the complying carriers shall be reinstated from suspension upon the filing of an insurance certificate or equivalent protection.
(8) In order to expedite the processing of insurance filings by the department, each insurance filing made should contain the insured' s California carrier number, if known, in the upper right corner of the certificate.
(c) (1) Notwithstanding any other provision of law, the operator of a for-hire tow truck who is in compliance with subdivision (a) may perform emergency moves, irrespective of the load carried aboard the vehicle being moved.
(2) For the purposes of paragraph (1), an "emergency move" is limited to one or more of the following activities:
(A) Removal of a disabled or damaged vehicle or combination of vehicles from a highway.
(B) Removal of a vehicle or combination of vehicles from public or private property following a traffic collision.
(C) Removal of a vehicle or combination of vehicles from public or private property to protect public health, safety, or property.
(D) Removal of a vehicle or combination of vehicles from any location for impound or storage, at the direction of a peace officer.
(3) The authority granted under paragraph (1) applies only to the first one-way carriage of property from the scene of the emergency to the nearest safe location. Any subsequent move of that property shall be subject to subdivision (a), including, but not limited to, a requirement that the for-hire tow truck operator have a level of liability protection that is adequate for the commodity being transported by the towed vehicle or combination of vehicles.
(4) Any transportation of property by an operator of an operator of a for-hire tow truck that is not an emergency move, as authorized under paragraph (1), shall be subject to subdivision (a), including, but not limited to, a requirement that the for-hire tow truck operator have a level of liability protection that is adequate for the commodity being transported by the towed vehicle or combination of vehicles.
(2) The protection required under subdivision (a) by every motor carrier of property engaged in interstate or foreign transportation of property in or through California, shall be evidenced by the filing and acceptance of a department authorized certificate of insurance, or qualification as a self-insurer as may be authorized by law.
(3) A certificate of insurance, evidencing the protection, shall not be cancelable on less than 30 days' written notice to the department, the notice to commence to run from the date notice is actually received at the office of the department in Sacramento.
(4) Every insurance certificate or equivalent protection to the public shall contain a provision that the certificate or equivalent protection shall remain in full force and effect until canceled in the manner provided by paragraph (3).
(5) Upon cancellation of an insurance certificate or the cancellation of equivalent protection authorized by the Department of Motor Vehicles, the motor carrier permit of any motor carrier of property, shall stand suspended immediately upon the effective date of the cancellations.
(6) No carrier shall engage in any operation on any public highway of this state during the suspension of its permit.
(7) No motor carrier of property, whose permit has been suspended under paragraph (5) shall resume operations unless and until the carrier has filed an insurance certificate or equivalent protection in effect at the time and that meets the standards set forth in this section. The operative rights of the complying carriers shall be reinstated from suspension upon the filing of an insurance certificate or equivalent protection.
(8) In order to expedite the processing of insurance filings by the department, each insurance filing made should contain the insured' s California carrier number, if known, in the upper right corner of the certificate.
(c) (1) Notwithstanding any other provision of law, the operator of a for-hire tow truck who is in compliance with subdivision (a) may perform emergency moves, irrespective of the load carried aboard the vehicle being moved.
(2) For the purposes of paragraph (1), an "emergency move" is limited to one or more of the following activities:
(A) Removal of a disabled or damaged vehicle or combination of vehicles from a highway.
(B) Removal of a vehicle or combination of vehicles from public or private property following a traffic collision.
(C) Removal of a vehicle or combination of vehicles from public or private property to protect public health, safety, or property.
(D) Removal of a vehicle or combination of vehicles from any location for impound or storage, at the direction of a peace officer.
(3) The authority granted under paragraph (1) applies only to the first one-way carriage of property from the scene of the emergency to the nearest safe location. Any subsequent move of that property shall be subject to subdivision (a), including, but not limited to, a requirement that the for-hire tow truck operator have a level of liability protection that is adequate for the commodity being transported by the towed vehicle or combination of vehicles.
(4) Any transportation of property by an operator of an operator of a for-hire tow truck that is not an emergency move, as authorized under paragraph (1), shall be subject to subdivision (a), including, but not limited to, a requirement that the for-hire tow truck operator have a level of liability protection that is adequate for the commodity being transported by the towed vehicle or combination of vehicles.
(a) Every motor carrier of property shall furnish the
department annually, as specified by the department, a list, prepared
under oath, of all vehicles, described in Section 34601, used in
transportation during the preceding year.
(b) If the carrier's insurer informs the department that the carrier has failed to obtain insurance coverage for any vehicle reported on the list, the department shall, in addition to any other applicable penalty provided in this division, suspend the carrier's permit.
(b) If the carrier's insurer informs the department that the carrier has failed to obtain insurance coverage for any vehicle reported on the list, the department shall, in addition to any other applicable penalty provided in this division, suspend the carrier's permit.
Every motor carrier of property with a carrier fleet of 20
or more commercial motor vehicles as defined in Section 34601 shall,
under oath, file annually a report with the department indicating the
number, classification, and compensation of all employees and
owner-operator drivers hired or engaged during the reporting period.
The department shall submit a copy of the report to the administrator
of the corporation's workers' compensation self-insurance plan if
the corporation is self-insured, or to the carrier's workers'
compensation insurer if the carrier's workers' compensation
protection is provided by a policy or policies of insurance.
(a) Upon receipt of a stop order issued by the Director of
Industrial Relations pursuant to Section 3710.1 of the Labor Code,
the department shall determine whether the motor carrier of property
has filed a false statement relative to workers' compensation
insurance coverage, in violation of statute, or rules or orders of
the department. If, after notice and opportunity to be heard, the
department determines that there has been a violation of statute, or
rules or orders of the department, the department shall, in addition
to any other applicable penalty provided in this division, suspend
the carrier's permit.
(b) Upon notification from the Director of Industrial Relations that a final judgment has been entered against any motor carrier of property as a result of an award having been made to an employee pursuant to Section 3716.2 of the Labor Code, the department shall, 30 days from the date the carrier is mailed the notice pursuant to subdivision (c), revoke the carrier's permit unless the judgment has been satisfied or has been discharged in accordance with the bankruptcy laws of the United States or the carrier requests a hearing pursuant to subdivision (c).
(c) Within seven days of notification from the Director of Industrial Relations that a final judgment has been entered against any motor carrier of property as a result of an award having been made to an employee pursuant to Section 3716.2 of the Labor Code, the department shall furnish to the carrier named in the final judgment written notice of the right to a hearing regarding the revocation of the permit and the procedure to follow to request a hearing. The notice shall state that the department is required to revoke the carrier's permit pursuant to subdivision (b) after 30 days from the date the notice is mailed unless the carrier provides proof that the judgment is satisfied or has been discharged in accordance with the bankruptcy laws of the United States and the department has been so notified seven days prior to the conclusion of the 30-day waiting period. The carrier may request a hearing within 10 days from the date the notice is sent by the department. The request for the hearing shall stay the revocation. The hearing shall be held within 30 days of the receipt of the request. If the department finds that an unsatisfied judgment exists concerning a debt arising under Section 3717 of the Labor Code, the department shall immediately revoke the carrier's permit.
(b) Upon notification from the Director of Industrial Relations that a final judgment has been entered against any motor carrier of property as a result of an award having been made to an employee pursuant to Section 3716.2 of the Labor Code, the department shall, 30 days from the date the carrier is mailed the notice pursuant to subdivision (c), revoke the carrier's permit unless the judgment has been satisfied or has been discharged in accordance with the bankruptcy laws of the United States or the carrier requests a hearing pursuant to subdivision (c).
(c) Within seven days of notification from the Director of Industrial Relations that a final judgment has been entered against any motor carrier of property as a result of an award having been made to an employee pursuant to Section 3716.2 of the Labor Code, the department shall furnish to the carrier named in the final judgment written notice of the right to a hearing regarding the revocation of the permit and the procedure to follow to request a hearing. The notice shall state that the department is required to revoke the carrier's permit pursuant to subdivision (b) after 30 days from the date the notice is mailed unless the carrier provides proof that the judgment is satisfied or has been discharged in accordance with the bankruptcy laws of the United States and the department has been so notified seven days prior to the conclusion of the 30-day waiting period. The carrier may request a hearing within 10 days from the date the notice is sent by the department. The request for the hearing shall stay the revocation. The hearing shall be held within 30 days of the receipt of the request. If the department finds that an unsatisfied judgment exists concerning a debt arising under Section 3717 of the Labor Code, the department shall immediately revoke the carrier's permit.
