Risky Business

Why VOI? Did You Know #8

When a Motor Carrier signs an insurance application requesting an MCS90 endorsement and 91X filing with FMCSA, it is a “protection to the public” contract. The MC agrees to insure “all units owned or operated” under his authority at all times. So when an MCS90 judgment occurs that involves an improperly insured Owner Operator, the insurance company must still pay that promise to the public.

However, if that Motor Carrier did not fully disclose to his insurance company any and all units operating on his behalf, expect the insurance provider who paid the 91X promise to circle around and sue for losses paid under insurance fraud and misrepresentation.