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Commercial Auto Filings and Policy Schedules
Bulletin – Wednesday, October 8, 2008
A question we are often asked is, “Why do we have to schedule all owned/operated vehicles when there are filings on a policy?”
A certificate of liability insurance is either issued for the FHWA (interstate) or PUC (intrastate) authority. These are filings issued by a carrier on behalf of the named insured that is sent to the state or federal government. There would also be an endorsement attached to the policy when that policy has filings.
An MCS90 is the endorsement that is attached with the FHWA filing, although, this endorsement may be attached to a policy without the filing.
An MC1632 (Form F) is the endorsement that corresponds with the state PUC Form E filing for proof of liability coverage.
An MC2444 (Form I) is the endorsement that corresponds with the state PUC Form H filing for proof of cargo coverage.
When filings are issued on a policy, the company is required to provide coverage for all autos owned and hired by the named insured. The carrier is required to provide coverage regardless if the vehicle is scheduled on the policy or not. There are no provisions in the policy that will relieve the company from paying a claim for a vehicle that was not scheduled.
If the company pays for a loss involving a vehicle that was not scheduled on a policy, they do have the right to recover damages from the insured, but recovery from an insured is often unlikely. To avoid the time and legal fees of trying to recover these claim amounts, the company requires all owned/operated vehicles to be scheduled.
Another tidbit to keep in mind is when your insured applies for their authority - be sure the name on the filing certificate and policy match exactly. Then there will be no question as to who the named insured is on a policy or filing.
(Information provided from AU66 Underwriting Commercial Liability, AICPCU, 2ND Edition)
A certificate of liability insurance is either issued for the FHWA (interstate) or PUC (intrastate) authority. These are filings issued by a carrier on behalf of the named insured that is sent to the state or federal government. There would also be an endorsement attached to the policy when that policy has filings.
An MCS90 is the endorsement that is attached with the FHWA filing, although, this endorsement may be attached to a policy without the filing.
An MC1632 (Form F) is the endorsement that corresponds with the state PUC Form E filing for proof of liability coverage.
An MC2444 (Form I) is the endorsement that corresponds with the state PUC Form H filing for proof of cargo coverage.
When filings are issued on a policy, the company is required to provide coverage for all autos owned and hired by the named insured. The carrier is required to provide coverage regardless if the vehicle is scheduled on the policy or not. There are no provisions in the policy that will relieve the company from paying a claim for a vehicle that was not scheduled.
If the company pays for a loss involving a vehicle that was not scheduled on a policy, they do have the right to recover damages from the insured, but recovery from an insured is often unlikely. To avoid the time and legal fees of trying to recover these claim amounts, the company requires all owned/operated vehicles to be scheduled.
Another tidbit to keep in mind is when your insured applies for their authority - be sure the name on the filing certificate and policy match exactly. Then there will be no question as to who the named insured is on a policy or filing.
(Information provided from AU66 Underwriting Commercial Liability, AICPCU, 2ND Edition)