Texas General Lines — Property and CasualtyCommercial LinesMedium
A client operates a regional trucking company with a fleet of 50 trucks. They primarily haul goods for others under contract. They are seeking comprehensive coverage for their vehicles, including liability and physical damage, as well as regulatory compliance with federal filings. Which Commercial Auto coverage form is most appropriate for this type of operation?
- AGarage Coverage Form
- BMotor Carrier Coverage Form
- CBusiness Auto Coverage Form
- DTruckers Coverage Form
Show answer & explanationAnswer & explanation
Correct answer: B. Motor Carrier Coverage Form
The Motor Carrier Coverage Form is specifically designed for businesses that transport property or passengers for hire, covering both common and contract carriers. It is broader than the Business Auto Coverage Form and addresses federal regulatory requirements.
Why the other options are wrong
- A. The Garage Coverage Form is for auto dealers, repair shops, and service stations, covering their operations and vehicles.
- C. The Business Auto Coverage Form is for businesses that own and operate vehicles for their own operations, not primarily for hauling goods for others for hire.
- D. The Truckers Coverage Form was replaced by the Motor Carrier Coverage Form and is no longer the current standard.
Motor Carrier Coverage Form
A Commercial Auto coverage form designed for businesses that transport property or passengers for hire, whether as common carriers or contract carriers. It provides comprehensive coverage for liability, physical damage, and addresses federal regulatory requirements.
- Replaced the Truckers Coverage Form.
- Covers both common and contract carriers.
- Addresses federal filings (e.g., MCS-90 endorsement for financial responsibility).
Memory trick: Auto's Awesome Options: Business, Garage, or Motor.