Auto Accidents With Trucks Insurance

Auto Accidents with Trucks-Insurance

Brien Roche

Insurance coverage is important in truck accident cases.

Developing all sources of insurance is critical in any truck accident case.

Auto Accidents with Trucks-Insurance-MCS-90

Get copies of all of the policies of insurance. They apply to the tractor, the trailer, the trucking company, their independent contractors, the shipper and the company loading the truck. Also the company loading the truck may be an insured under the MCS-90 even though not named on the policy. In addition U.S. law requires the issuance of a MCS-90 Form. It provides unconditional coverage to the public. This is attached to the primary policy. Therefore the insurer must pay any final judgment. This is whether or not each motor vehicle is described in the policy. The purpose is to provide coverage where the underlying policy does not. In addition it voids lack of notice or cooperation as a defense. However it only applies to interstate motor carriers. The minimum coverage is $750,000. Also if the tractor and trailer are separately owned then separate policies apply.

The MCS-90 is only applicable to interstate commerce. In spite of that, the Virginia Supreme Court has held that coverage pursuant to the MCS-90 provides universal coverage for all accidents, regardless of how and where the vehicle is being used. Heron v. Transportation Casualty Insurance Corp., 274 Va. 534 (2007)

The MCS-90 creates a suretyship by the insurer to protect the public when the policy to which the MCS-90 is attached would otherwise not provide coverage. Canal Insurance Co. v. Distributing Services, 320 F.3d 488 (4th Cir., 2003) Once the carrier has paid the liability judgment under the MCS-90, it can seek indemnification from the motor carrier.

Virginia Law

The statutory framework dealing with this issue of coverage is complex. For companies insured by a policy issued in Virginia, you need to look at Virginia Code § 46.2-706.1, § 46.2-2108.4, § 46.2-2142, § 46.2-2143, § 46.2-2143.1 and § 46.2-2144 which collectively indicate that both the motor carrier and the insurance company have obligations to report to the DMV that the truck was insured for at least the required minimum and the motor carrier was required to keep the truck insured for that required amount. Also case law on the issue confirms that where the terms of the policy conflict with the statute, the statute controls. State Farm Mutual v. Seay, 236 Va. 275, 280, 373 S.E.2d 910, 913 (1988) and Canal Ins. Co. v. Barker, 358 F.App.’x 470, 474-475 (4th Cir. 2009) which suggests that policy limits will be increased to meet the minimum required under § 46.2-2143.

Also tow trucks in Virginia are required to carry $750,000 in coverage.

Under the Virginia regulations, a commercial motor vehicle used exclusively in intrastate commerce in Virginia is not subject to the federal minimum liability limits unless the vehicle is used to transport hazardous materials. Va. Code § 46.2-2143.1

All commercial auto policies issued for delivery in Virginia must include the standard form endorsement for UM coverage and medical expense coverage.