FMCSA drops effort to increase insurance minimums
The Federal Motor Carrier Safety Administration has withdrawn its November 2014 advance notice of proposed rulemaking (ANPRM) that had set the stage toward a potential increase in the minimum levels of financial responsibility for motor carriers. Based on a study concluded in January 2013, the Obama administration had determined that there was preliminary support for increasing minimum insurance levels. The ANPRM also asked several questions related to broker/freight forwarder financial responsibility as it continues to implement Section 32918 of the Moving Ahead for Progress in the 21st Century Act.
FMCSA received nearly 2,200 comments with carriers and insurers generally opposed to an increase and safety advocates, trial lawyers and labor unions supporting an increase.
"Despite receiving a significant number of comments in response to the ANPRM, commenters did not provide responsive information necessary to allow the Agency to proceed to a notice of proposed rulemaking," FMCSA said. The agency said it was unable to obtain sufficient data on industry practice related to the level of liability limits higher than the minimum; the cost of such premiums; or the amount by which bodily injury and property damage claims exceed policy liability limits. Without adequate data on the potential increase in premiums or insurance companies' capital requirements, FMCSA said it cannot calculate the economic benefits of a change in minimum insurance levels.