Open your eyes to the many potential pitfalls, coverage traps,
underwriting concerns, and claims issues lurking under the surface of the
seemingly innocuous MCS-90 endorsement. If you buy insurance for, sell
insurance to, or underwrite insurance on commercial vehicles, you need this
must-read reference to master the nuances and application of the MCS-90
endorsement.
The MCS-90 endorsement is an often misunderstood and litigated one-page
endorsement mandated by the Motor Carrier Act of 1980. The MCS-90 is attached
to auto insurance policies for the purpose of certifying that the insured
maintains the required minimum level of financial responsibility in order to
compensate others for public liability, including pollution, arising from an
auto or motor carrier (trucking) accident. Strictly speaking, the MCS-90 is
not a traditional endorsement that enhances or restricts coverage, but more
akin to a surety agreement guaranteeing payment. The most obvious category of
businesses that need this endorsement is motor carriers (truckers) of all
types. Additionally, however, it is often needed by others with vehicle
fleets such as private carriers.
The MCS-90 Book covers these topics.
- Historical and statutory developments of the MCS-90 endorsement
- The Motor Carrier Act of 1980
- The scope of the MCS-90
- What triggers the MCS-90 versus when it is not triggered?
- When is the endorsement primary versus excess?
- Environment restoration
- Cancellation of the MCS-90 versus cancellation of the supporting
insurance poicy
- Use of the MCS-90B
- State Forms E and F
- Underwriting pitfalls and guidance
Download Table of Contents
Agents, Brokers, and Account Support Staff
- Understand the coverage gap that often exists when this endorsement
is used and how to close it.
- Help explain to your clients why they need to buy auto pollution
coverage even if this endorsement is on their policy.
- Circumvent exposure pitfalls and help insureds make the right
coverage option choices.
Risk Managers, Financial Executives, and Insurance
Buyers
- Avoid costly truckers and motor carrier liability insurance coverage
gaps.
- Explain to management why auto pollution liability insurance is
needed.
Underwriters
- Get up to speed on what this unusual endorsement accomplishes (and
what it doesn't do).
- Advise brokers and insureds on the need for and application of this
endorsement.
- Discover the pitfalls and watch for them when underwriting motor
carrier accounts.
Claims Adjusters
- Show brokers and insureds documentation explaining the insurer's
right of subrogation under the MCS-90 endorsement.
- Understand and explain the differences between the MCS-90 endorsement
and traditional insurance endorsements.
Attorneys
- Prepare briefs faster using the citations and discussions of case law
interpreting the MCS-90 endorsement.
- Get up to speed on what this unusual endorsement accomplishes and
what it doesn't.
Consultants
- Get up to speed on what this unusual endorsement accomplishes and
what it doesn't.
- Help explain to your clients why they need to buy auto pollution
coverage even if this endorsement is on their policy.
- Circumvent exposure pitfalls, and help insureds make the right
coverage option choices.
Your purchase of an IRMI reference product includes a complimentary
subscription to The Electronic Owl e-newsletter. You'll
receive a monthly update with links to new content and tips on how to
get the most from your IRMI resources.
Your purchase of The MCS-90 Book comes with a digital copy
of the Contractor's Guide to CIPs, a handy reference that
provides guidance on 39 issues contractors should consider when
accepting coverage through a wrap-up or controlled insurance program.
This publication was prepared by the OCIP Task Force of the AGC of
America.