ISO MOTOR CARRIER COVERAGE FORM OVERVIEW

(October 2022)

INTRODUCTION

The CA 00 20–Motor Carrier Coverage Form has been designed to insure the automobile liability and physical damage exposures of businesses that haul goods and merchandise. Transportation businesses have most of their assets tied up in their owned and leased vehicles. Their primary liability exposures are from lawsuits arising from accidents their vehicles cause. This coverage form is flexible, and any motor carrier can use it. A range of endorsements is available to broaden, restrict, or clarify coverage.

CA 00 20–Motor Carrier Coverage Form Analysis

ISO Motor Carrier Coverage Form Available Endorsements and Their Uses

ELIGIBILITY

Persons or organizations that transport goods, materials, or commodities by motor vehicles to assist in their business enterprises are eligible.

Related Article: Motor Carrier Coverage Form Eligibility

POLICY MAKE-UP

ISO Motor Carrier coverage is written using five basic forms:

IL DS 00–Common Policy Declarations

Note: This may be combined with the Motor Carrier Declarations.

IL 00 17–Common Policy Conditions

Note: This form contains conditions common to all commercial lines of insurance. It is a mandatory part of most monoline and commercial multi-line policies.

CA DS 21–Motor Carrier Declarations

Related Article: CA DS 21–Motor Carrier Declarations

CA 00 20–Motor Carrier Coverage Form

Policy Cover Page or Jacket. This form is designed by individual insurance companies for their own purposes and may include a table of contents or index to meet the requirements of some states.

CA 00 20–MOTOR CARRIER COVERAGE FORM

This coverage form is specifically designed for motor carriers, but motor carriers are not required to use this form. They may choose to be covered under CA 00 01–Business Auto Coverage Form instead.

The Motor Carrier Coverage Form consists of six sections:

Section I–Covered Autos

This section describes covered autos based on symbols on the declarations.

Section II–Covered Autos Liability Coverage

This section identifies the liability coverage provided for covered autos, including who is an insured, coverage extensions, exclusions, and limits of insurance.

Section III–Trailer Interchange Coverage

This section provides trailer interchange coverage, including coverage extensions, exclusions, limits of insurance and deductibles.

Section IV–Physical Damage Coverage

This section identifies the physical damage coverages available, including coverage extensions, exclusions, limits of insurance and deductibles.

Section V–Motor Carrier Conditions

This section includes both Loss Conditions and General Conditions.

Section VI–Definitions

This section defines certain terms used in the coverage form.

ENDORSEMENTS

Endorsements tailor the coverage form to customize the coverage provided to respond to specific situations. Some are used with certain types of businesses. Others cover other parties having financial interests in the covered vehicle. A few endorsements add coverage while others redefine policy language or apply rating and premium calculation procedures. Another category clarifies or restates a provision or condition in the coverage form as it applies to a specific insured.

UNDERWRITING AND RATING

Underwriting motor carriers coverage starts with determining who the named insured(s) is and what the operation does. Management must be evaluated, especially the safety attitude.

The most important underwriting factor is evaluating the drivers who operate the vehicles. Driving records, education, and training, periodic motor vehicle reports, and random drug and substance testing are some of the measures employers use to screen drivers. The insured must be in control of the drivers and have incentive programs as well as remedial action procedures in place.

The vehicles must be evaluated based on their make, model, age, value, and radius of operations. Vehicle maintenance programs, replacement schedules, types of safety devices and protection systems, such as theft alarms, and crime and environmental pollution issues must all be analyzed. Detailed loss history and related information are very important. Loss frequency, severity, and total losses will often determine risk acceptability.

RATING

Rating is subject to the ISO rules in Division One, Automobile, of the Commercial Lines Manual. The premium computation is based on very specific criteria.