Calif. PUC Issues Proposed Resolution Involving Commission General Orders, Insurance Certificate Form PL-914, Insurance Endorsement Form PL-912
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SUMMARY
This Resolution amends Commission
BACKGROUND
State law establishes the insurance requirements for Passenger Stage Corporations (PSCs) and Transportation Charter-Party Carriers (TCPs) in
1. the Motor Carrier Automobile Bodily Injury Liability and Property Damage (PL&PD) insurance policy is amended by the attachment of Insurance Endorsement Form PL912;
2. by attachment, the insurance policy provides liability protection as required by Pub. Util. Code Sec.Sec. 1040, 5391 or 5391.2, or 5433 where applicable; by
3. the protection of the insurance policy extends to the operation, maintenance, or use of any vehicle requiring a Commission certificate of permit although such vehicle may not be specifically described in the policy;
4. upon request the insurance company will provide the Commission a copy of the insurance policy and all endorsements; and
5. the insurance policy cannot be cancelled without thirty (30) days prior notice to the Commission.
Furthermore, when filing an insurance policy electronically, the insurance company certifies that the Standard Form of Endorsement Prescribed by the
1. That the policy to which the PL-912 is attached is amended to ensure compliance of the insured as to their operations as a PSC or TCP to provide the liability protection as required by Pub. Util. Code Sec.Sec. 1040, 5391 or 5391.2, or 5433 where applicable, by
2. That in consideration of the policy's premium, the insurance company agrees to pay any final judgment against the insured for bodily injury to or death of any person, or loss of or damage to property to others, with specific exclusions;
3. That there are no conditions or limitations in the policy to this endorsement;
4. That the limitations in coverage apply separately to each accident, and that any payment for any one accident will not reduce the liability of the insurance company for any other accident; and
5. That a schedule of insurance limits based upon the seating capacity of each motor vehicle is included.
SB 757 (ARCHULETA: 2023)
On
To fully protect the public, Pub. Util. Code Sec. 5384.3, along with its insurance requirements, should be incorporated by the Commission into Forms PL-914, PL-912, and Commission
VEHICLE SEATING CAPACITY
The amount of liability coverage required by the Commission is determined by vehicle seating capacity. The exceptions to this are transportation network companies, carriers that operate under TCP "C" Certificates, and the newly created Crew Transportation Operators.
Currently, in the calculation of vehicle seating capacity, GO 101-E and GO 115-G refer to the number of "passengers" in the vehicle without accounting for the "driver" of the vehicle. Commission staff have received occasional inquiries from carriers, insurance companies, and insurance brokers as to whether the driver of the vehicle counts as a passenger. The description of vehicle seating capacities is inconsistent between the Public Utilities Code, Code of Federal Regulations (CFR), Commission
Insurance requirements for PSCs and TCPs are found in Pub. Util. Code Sec. 1040,/8 which requires that the insurance levels not be set at an amount less than the amount set by the Federal Bus Regulatory Reform Act of 1982 (P.L. 97-261), as amended, and not more than
49 CFR Sec. 387.33T/10 sets the minimum insurance requirements as:
Vehicle seating capacity ...Minimum limits
(a) Any vehicle with a seating capacity of 16 passengers or more, including the driver ...
(b) Any vehicle with a seating capacity of 15 passengers or less, including the driver ...
In one of its definitions of "commercial motor vehicle," 49 CFR Sec. 387.33T describes it as "designed or used to transport more than 8 passengers (including the driver) for compensation..." However, as previously stated, Pub. Util. Code Sec. 1040 clarifies the
While the CFR and Pub. Util. Code specifically mention the driver (e.g., "Any vehicle with a seating capacity of 16 passengers or more, including the driver" requires
To be consistent and clear, GOs 101 and 115 and Insurance Endorsement Form PL-912 should be updated to match the descriptions in the CFR and Pub. Util. Code by specifying that the driver is included in the calculation of vehicle seating capacity.
SELF-INSURANCE
GOs 101-E and 115-G require that carriers that opt to be self-insured be qualified as a selfinsurer with the
(6) Any charter-party carrier of passengers engaged in interstate or intrastate operations within the
(7) Each charter-party carrier of passengers desiring to become qualified as a self-insurer, or to have orders or certificates issued by the
The ICC was abolished with the ICC Termination Act of 1995 (Public Law No. 104-88, 109 Stat. 803)./11 The Motor Carrier Safety Improvement Act of 1999 created the "
COMMENTS
Public Utilities Code Sec. 311(g)(1) provides that this Resolution must be served on all parties and subject to at least 30 days public review. Any comments are due within 20 days of the date of its mailing and publication on the Commission's website and in accordance with any instructions accompanying the notice. Section 311(g)(2) provides that this 30-day review period and 20-day comment period may be reduced or waived upon the stipulation of all parties in the proceeding.
The 30-day review and 20-day comment period for the draft of this Resolution is neither waived nor reduced. Accordingly, this draft Resolution was emailed to all licensed PSCs and TCPs along with all insurance companies with active accounts in the Commission's Transportation Carrier Portal for comments and will be placed on the Commission's agenda no earlier than 30 days from today.
FINDINGS OF FACT
1. Insurance requirements for PSCs are set forth in Pub. Util. Code Sec. 1040.
2. Insurance requirements for TCPs are set forth in Pub. Util. Code Sec.Sec. 1040 and 5391.
3. The insurance filing requirements for PSCs and TCPs are set forth in Commission
4. Commission Resolution TL-19105 requires an insurance company to electronically file an insurance certificate for the policies they insure.
5. When an insurance company files the required insurance policy electronically, they must also file a "MOTOR CARRIER AUTOMOBILE BODILY INJURY LIABILITY AND PROPERTY DAMAGE LIABILITY CERTIFICATE OF INSURANCE" (Form PL-914), which states in part that the insurance company of the passenger carrier certifies that the insurance policy has been amended by the attachment of "STANDARD FORM OF ENDORSEMENT PRESCRIBED BY THE PUBLIC UTILITIES COMMISSION OF THE
6. Form PL-912 ensures compliance of the PSC and/or TCP carrier with Pub. Util. Code Sec.Sec. 1040 and 5391, where applicable, and GO 101 Series and/or GO 115 Series, and the pertinent rules, orders, and regulations of the
7. SB 757 set new insurance requirements for [Railroad] Crew Transportation Operators that operate Contract Crew Transportation Vehicles.
8. Commission staff have received inquiries regarding if a driver is counted as a passenger when determining the minimum required level of insurance.
9. Passenger carriers can satisfy insurance requirements under GOs Series 101 and 115 by showing that they have been qualified as self-insurers by the Federal Government.
10.
11. The
12. GOs Series 101 and 115 and Forms PL-912 and PL-914 should be updated to include insurance requirements of SB 757, clarify vehicle seating capacity requirements, and identify the FMCSA as the current agency that qualifies passenger carriers to selfinsure.
THEREFORE, IT IS ORDERED THAT:
1.
2. The Executive Director shall cause a copy of this Resolution to be served on all licensed Passenger Stage Corporations and Charter-Party Carriers and insurance companies with active accounts in the Commission's Transportation Carrier Portal.
3. This Resolution is effective today.
I hereby certify that this Resolution was adopted by the
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Original text here: https://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M525/K127/525127604.pdf
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