MCS-90 endorsement
An endorsement that must be attached to the auto liability policy
of certain regulated motor carriers to ensure that federally mandated
coverage (e.g., required liability limits and environmental restitution
coverage) is in place. The endorsement does not actually provide
insurance except on a reimbursement basis. For example, a standard
unendorsed Insurance Services Office, Inc. (ISO), commercial auto
policy contains a pollution exclusion that would preclude coverage
for environmental restitution. In the event the broadened pollution
liability coverage endorsement (CA 99 48) is attached to a regulated
motor carrier's policy, the pollution exclusion is modified but
not totally deleted. In either event, if the MCS-90 endorsement
is attached, the insurer's obligation with respect to such a situation
is determined by the MCS-90 endorsement provisions regardless. If
the policy would provide such coverage even without that endorsement,
the insurer pays the claim and the endorsement effectively has no
impact on the issue. However, if the claim would not have been covered
under the policy except for the MCS-90 endorsement provisions, the
insurer pays the claim and then has the right to seek reimbursement
from the insured. See also
Motor Carrier Act (MCA) of 1980;
Motor
carrier policy.
Links for IRMI Online Subscribers
Only:
CAI III.T,
XIII.Y