With the delivery of warning letters to motor carriers from the Federal Motor Carrier Safety Administration still months away, transportation insurers are struggling to determine how to react to potential changes in exposure from the new oversight system, according to a coverage expert.
Tommy Ruke, president of Insurance Business Consultants in Fort Myer, Fla., described scenarios that could prompt midterm policy cancellations as the FMCSA's CSA initiative moves forward. (See pages 12 and 14 for details of the initiative.)
While insurance regulations specific to cancellations vary from state to state, Mr. Ruke–an instructor for courses on the basics of trucking insurance coverage and regulatory issues for the King of Prussia, Pa.-based American Association of Managing General Agents and other associations–said that, in general, an insurer cannot cancel a policy after 60 days.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
