Layover.com: Delinquent Brokers; Cancelled Insurance

Delinquent Brokers; Cancelled Insurance

I am a Licensed Insurance Agent and retired Interstate Commerce Commission (ICC) Investigator with more than 49 years in transportation. For the past 16 years I have been a transportation consultant assisting those who would like to get their own motor carrier or broker authority. Send me your questions and I will use my expertise and knowledge to answer them.

Q	How do I collect from a broker that is delinquent in payment?

A	Go to the License & Insurance (L&I) web site at http://li-public.fmcsa.dot.gov/LIVIEW/pkg_carrquery.prc_carrlist and. Insert the broker's MC number. Click on "Report" under "View Details." Check to see if the broker is "active" or "inactive." Check the active/pending insurance for the insurance carrier. Contact the insurance carrier for its procedure to obtain the funds due. If the "Type of Insurance" does not show an active "Surety" or "Trust Fund," the so-called "broker" is considered an illegal broker. You should always check to see if the broker is legal before accepting any loads.

Q	I changed insurance companies and my authority was cancelled. What is the proper procedure in changing insurance companies?

A	When you cancel or change your insurance, the insurance company files a Notice of Cancellation with the FMCSA. Thirty days from the date of the cancellation with the FMCSA, your authority will be considered cancelled or void unless the new insurance company files the insurance with the FMCSA within the same thirty-day period. If for any reason the new insurance is not filed within the thirty days, your authority will be cancelled. At that point, in order to continue to operate, you must file for a reinstatement of your authority with the FMCSA. This can take several days. In the meantime, you do not have authority to operate in interstate transportation.

Q	What is the best authority to have for 2008?

A	In my opinion, the best authority to have is both common carrier and broker. If you intend to work with the U.S. Government, some government agencies require that you have both liability and cargo insurance on file with the FMCSA. Your broker authority should be under another name and MC number than the common carrier authority. This allows you to broker loads if all of your equipment is in use or if your destinations are where you do not wish to travel. Either way, you have the opportunity to earn revenue.

Q	What does "having your authority" mean?

A	Having your own authority allows you to transport in interstate transportation for compensation. Having your own authority also tells the shippers that you have the required insurance for protection of the public.

Q	Can a contract or common carrier or freight forwarder broker loads?

A	NO. You must first have a license to operate as a broker of freight.

Q	I want to change the name of my transportation company. Can I keep the same MC and US DOT numbers?

A	Yes, you will keep the same MC and USDOT numbers. However, you will not receive a new Certificate, Permit, or License. You will receive a Re-entitlement Decision that should be attached to your original operating authority..

Q	My authority was granted in August 2007 and I still have not been able to file for the Unified Carrier Registration (UCR). Who can I contact to find out why my MC number is not in the UCR system?

A	Call either the UCR headquarters in Indiana at (317) 615-7285 or check your base state at http://www.ucr.in.gov/MCS/StateContactList.htm.

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Ask Rex...

Rex Evilsizor & Associates specializes in filing motor carrier authorities (both freight and passenger) with the Federal Highway Administration. Rex is a retired ICC investigator (Special Agent) and Licensed Insurance Agent with more than 49 years of transportation experience.

Due to the amount of questions we receive, we are unable to answer all of them individually. We will answer as many as possible in this column.

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Delinquent Brokers; Cancelled Insurance