DIVISION 40
INSURANCE AND BONDS
740-040-0010
Insurance
(1) Insurance filed in compliance with ORS 825.160 or 825.166 must provide for payment of any final judgment recovered against the carrier for bodily injury to or the death of any person or for damage to property resulting from negligence in the operation, maintenance, ownership or use of the vehicle involved, except injury to or death of the name insured's employees while engaged in the course of their employment, and loss of or damage to property owned or operated by or in the care, custody or control of the name insured, and property transported by the named insured, designated as cargo, and to any obligation for which the named insured may be held liable under any workers' compensation law.
(2) The liability of the insurer as to each vehicle must be a continuing one notwithstanding any recovery under the policy.
(3) An insurance policy of public liability and property damage or a signed certificate of insurance signed by the carrier's insurer shall be filed with the Department:
(a) A certified statement of insurance may be filed by the motor carrier on a fully executed form approved by the Department when it is an interstate or private carrier operating in the state for the first time; and
(b) A certified statement shall not authorize operations for more than 60 days after the filing date. If a certified statement is filed, the carrier shall cause to be filed, within 60 days, a policy of insurance or a certificate of insurance signed by the carrier's insurer showing that the carrier's insurance was effective at the time the certificate or permit was issued and remained effective for the duration of the time operated. Failure to file within 60 days is cause for revocation or suspension of the carrier's certificate or permit without notice or hearing.
(4) Self-Insurers -- Interstate:
(a) Carriers claiming exempt status as qualified self-insurers under Title 49, Code of Federal Regulations, Part 1043 must establish such status by filing a certified copy of the Federal Highway Administration order declaring such status with the Department; and
(b) At the end of each calendar year, or as the Department otherwise requires, such carriers must file affidavits reciting that their certificates or self-insurance issued by the Federal Highway Administration remain in full force and effect.
(5) If for any reason a certificate of self-insurance becomes inoperative or evidence of insurance becomes insufficient, the certificate or permit of the concerned carrier shall immediately, and by operation hereof, be suspended.
[Publications: The publication referenced are available from the agency.]
Stat. Auth.: ORS 823.011 & ORS 825.164
Stats. Implemented: ORS 825.160 & ORS 825.166
Hist.: PUC 18, f. 1-21-55, ef. 9-1-54 (Order No. 33203); PUC 120, f.
10-26-62, ef. 11-15-62 (Order No. 38811); PUC 135, f. 5-9-66, ef.
5-15-66 (Order No. 42332); PUC 148, f. 7-29-68, ef. 9-1-68 (Order No.
44783); PUC 152, f. & ef. 12-22-69 (Order No. 46489); PUC 156, f.
8-6-73, ef. 8-15-73 (Order No. 73-507); PUC 181, f. 12-30-77, ef.
1-15-78 (Order No. 77-896); PUC 3-30, Part 1, f. & ef. 6-30-80
(Order No. 79-805); Renumbered from 860-033-0005; PUC 12-1981, f.
& ef. 12-16-81 (Order 81-880); PUC 19-1985, f. & ef. 11-1-85
(Order No. 85-1030); PUC 14-1986, f. & ef. 10-31-86 (Order No.
86-1116); PUC 16-1994(Temp), f. 12-28-94, cert. ef. 1-1-95 (Order No.
94-2077); PUC 5-1995, f. & cert. ef. 6-23-95 (Order No. 95-561);
MCT 3-1996, f. & cert. ef. 3-14-96; Renumbered from 860-063-0005;
MCT 9-1997, f. & cert. ef. 12-22-97; MCTB 1-2002, f. 6-21-02,
cert. ef. 7-1-02
740-040-0020
Liability Insurance
Carriers who are required to file liability insurance shall file evidence of such insurance for a minimum single limit of $750,000 per accident.
Stat. Auth.: ORS
823 & ORS
825
Stats. Implemented: ORS
825.160
Hist.: PUC 3-30, Part 1, f. & ef. 6-30-80 (Order No. 79-805);
Renumbered from 860-033-0008; PUC 8-1985, f. & ef. 6-10-85 (Order
No. 85-499); PUC 7-1992, f. 2-26-92, cert. ef. 3-1-92 (Order No.
91-1141); MCT 3-1996, f. & cert. ef. 3-14-96; Renumbered from
860-063-0008
740-040-0030
Cargo Insurance
(1) All Class 1A, 1G, 1B and 1C for-hire carriers are required under ORS 825.162 to have cargo insurance. A policy or a certificate of insurance in the minimum amount of $10,000, signed by the carrier's insurer, must be filed with the Department of Transportation.
(2) The Department may waive the requirement for cargo insurance in circumstances where a carrier makes a sufficient showing that its service is limited to commodities not subject to material damage or loss through ordinary transportation hazards. Commodities not subject to material damage or loss through ordinary transportation hazards include, but shall not be limited to: Sand, gravel, rock, dirt, debris, cinders, wet ready-mix concrete, metallic ores and concentrates; logs, poles, piling, and cut trees; cordwood, wood chips, lumber, shingles, veneer, plywood, particle board, wallboard, and siding; unprocessed agricultural commodities; fish scrap; newspapers; garbage and waste material for recycling; compressed motor vehicle bodies; and water.
Stat. Auth.: ORS
823.011 & ORS
825.162
Stats. Implemented: ORS
825.162
Hist.: PUC 18, f. 1-21-55, ef. 9-1-54 (Order No. 33203); PUC 120, f.
10-26-62, ef. 11-15-62 (Order No. 38811); PUC 135, f. 5-9-66, ef.
5-15-66 (Order No. 42332); PUC 148, f. 7-29-68, ef. 9-1-68 (Order No.
44783); PUC 156, f. 8-6-73, ef. 8-15-73 (Order No. 73-507);
Renumbered from 860-033-0010; PUC 12-1981, f. & ef. 12-16-81
(Order No. 81-880); PUC 1-1984, f. & ef. 2-9-84 (Order No.
84-076); PUC 19-1985, f. & ef. 11-1-85 (Order No. 85-1030); PUC
8-1987(Temp), f. & ef. 10-2-87 (Order No. 87-989); PUC 1-1988, f.
& cert. ef. 1-14-88 (Order No. 88-023)); PUC 16-1994(Temp), f.
12-28-94, cert. ef. 1-1-95 (Order No. 94-2077); PUC 5-1995, f. &
cert. ef. 6-23-95 (Order No. 95-561); MCT 2-1996, f. & cert. ef.
2-16-96; Renumbered from 860-063-0010; MCT 3-1996, f. & cert. ef.
3-14-96
740-040-0040
Sanctions for Insurance Cancellation
If a carrier's policy required pursuant to ORS 825.160 or 825.162 is cancelled, the motor vehicles assigned to that carrier shall not be operated on the highways of this state and the carrier's certificate or permit may be suspended by the Department.
Stat. Auth.: ORS 823.011, ORS 825.160 & ORS 825.164
Stats. Implemented: ORS 825.164
Hist.: PUC 19-1985, f. & ef. 11-1-85 (Order No. 85-1030); MCT
3-1996, f. & cert. ef. 3-14-96; Renumbered from 860-063-0012;
MCTB 1-2002, f. 6-21-02, cert. ef. 7-1-02
740-040-0050
Collect on Delivery Bonds and Securities
(1) Collect on delivery bonds required by ORS 825.162 must be filed on a form approved by the Department. Unless otherwise provided by the Department, minimum limits for securities filed pursuant to ORS 825.166 shall be $10,000.
(2) If a collect on delivery bond is cancelled, the certificate of the concerned carrier, as it pertains to collect on delivery service, shall be suspended.
Stat. Auth.: ORS
823 & ORS
825
Stats. Implemented: ORS
825.162 & ORS
825.166
Hist.: PUC 18, f. 1-21-55, ef. 9-1-54 (Order No. 33203); PUC 120, f.
10-26-62, ef. 11-15-62 (Order No. 38811); PUC 135, f. 5-9-66, ef.
5-15-66 (Order No. 42332); PUC 148, f. 7-29-68, ef. 9-1-68 (Order No.
44783); PUC 156, f. 8-6-73, ef. 8-15-73 (Order No. 73-507); PUC 4-79,
f. & ef. 9-21-79 (Order No. 70-641); PUC 2-80, f. & ef.
3-27-80 (Order No. 80-179); Renumbered from 860-033-0015; PUC 8-1985,
f. & ef. 6-10-85 (Order No. 85-499); PUC 19-1985, f. & ef.
11-1-85 (Order No. 85-1030); PUC 16-1994(Temp), f. 12-28-94, cert.
ef. 1-1-95 (Order No. 94-2077); PUC 5-1995, f. & cert. ef.
6-23-95 (Order No. 95-561); MCT 3-1996, f. & cert. ef. 3-14-96;
Renumbered from 860-063-0015
740-040-0060
Irrevocable Letters of Credit
(1) In lieu of filing liability insurance, cargo insurance or a collect-on-delivery bond, a motor carrier may file with the Department an irrevocable letter of credit.
(2) Any irrevocable letter of credit must meet the definition and requirements of ORS 75.1010 through 75.1170 and must:
(a) State the name and address of the issuing bank;
(b) State the name of the motor carrier;
(c) List the account number or numbers upon which draws may be made;
(d) Identify the Department as beneficiary of the letter;
(e) Set forth the amount of credit of the letter;
(f) Allow for partial draws;
(g) State the effective and termination dates of the letter;
(h) Be signed by a person with authority to bind the issuing bank; and
(i) Contain a provision that the issuing bank agrees to provide the Department written notice of at least 30 days before the issuing bank cancels the letter.
(3) The minimum amount of credit in an irrevocable letter of credit shall be as follows:
(a) For liability insurance, the minimum limit required by OAR 740-040-0020;
(b) For cargo insurance, the minimum limit required by OAR 740-040-0030; or
(c) For a collect-on-delivery bond, the minimum limit required by OAR 740-040-0050.
(4) A claimant requesting that the Department make a payment under an irrevocable letter of credit shall provide:
(a) A true copy of an agreement showing that the motor carrier has consented to settle for the amount of the payment; or
(b) A true copy of a judgment showing that a court is requiring the motor carrier to tender the amount of the payment and a statement certifying:
(A) That the judgment has not been appealed and that the time for appeal has run; or
(B) That the motor carrier has exhausted its appeal rights and that such appeal or appeals were unsuccessful.
(5) If the Department's authorization of payment will cause the amount of credit in an irrevocable letter of credit to fall below the applicable minimum of section (3) of this rule, the Department shall, prior to such authorization, send the motor carrier a written notice requiring the motor carrier to increase the amount of credit so that, after payment, the amount of credit will at least equal the applicable minimum of section (3) of this rule.
(6) On or before the tenth day following the date of the written notice required by section (5) of this rule, the motor carrier shall increase the amount of credit in its irrevocable letter of credit so that, after payment, the amount of credit will at least equal the applicable minimum of section (3) of this rule.
(7) A motor carrier which fails to comply with any requirement of this rule is subject to suspension of its authority.
Stat. Auth.: ORS
823.011, ORS
825.160 & ORS
825.164
Stats. Implemented: ORS
825.166
Hist.: PUC 9-1992, f. & cert. ef. 6-4-92 (Order No. 92-791); MCT
3-1996, f. & cert. ef. 3-14-96; Renumbered from 860-063-0017; MCT
8-1997, f. & cert. ef. 11-17-97; MCTB 2-1998, f. & cert. ef.
8-20-98
740-040-0070
Deposits to Secure Payment of Fees, Taxes, Charges, Penalties and Interest
(1) The Department requires each motor carrier that does not qualify for a deposit waiver under section (4) of this rule to deposit with the Department an amount of money necessary to insure the collection of fees, taxes, charges, penalties and interest.
(2) For purposes of this rule:
(a) "New carrier" means any motor carrier that has not previously received a permit or certificate of authority from the Department;
(b) "Established carrier" means any motor carrier that has operated in Oregon for 12 months or more in the most recent 36-month period;
(c) If an applicant, carrier, or employee of the applicant or carrier has had substantial interest or control, directly or indirectly, in or over the operations conducted in Oregon under any carrier's authority, the Department may treat the applicant or carrier as an established carrier.
(3) The security deposit schedule is as follows:
(a) Except as described in subsections (c) and (d) of this section, for new carriers:
(A) One vehicle -- $2,000;
(B) Plus $375 for each additional vehicle from 2-5 vehicles;
(C) Plus $250 for each additional vehicle from 6-10 vehicles;
(D) Plus $125 for each additional vehicle above 10 vehicles;
(E) Maximum deposit required -- $10,000.
(b) Except as described in subsections (c) and (d) of this section, for established carriers required to have a deposit, the deposit amount will be an amount determined by a review of Department records or as specified in paragraph (A) to (E) of this subsection, whichever is greater:
(A) One vehicle -- $2,000;
(B) Plus $750 for each additional vehicle from 2-5 vehicles;
(C) Plus $500 for each additional vehicle from 6-10 vehicles;
(D) Plus $250 for each additional vehicle from 10 vehicles;
(E) Maximum deposit required -- $20,000.
(c) For private carriers and farmers issued permits under ORS 825.024 who operate motor vehicles weighing under 55,000 pounds that use gasoline on which gasoline tax provided by law has been paid to the State of Oregon:
(A) One vehicle -- $500;
(B) Plus $150 for each additional vehicle;
(C) Maximum deposit required -- $10,000.
(d) For private carriers and farmers issued permits under ORS 825.024 who operate motor vehicles weighing under 55,000 pounds that use any fuel other than gasoline or use gasoline on which gasoline tax provided by law has not been paid to the State of Oregon:
(A) One vehicle -- $750;
(B) Plus $500 for each additional vehicle;
(C) Maximum deposit required -- $15,000.
(4) The Department will waive the deposit required of:
(a) A new carrier with a Dun & Bradstreet rating of 3A2 or higher;
(b) An established carrier if the Department finds that in the previous 12 months the motor carrier has had no:
(A) Suspensions with the Department;
(B) Revocation of IFTA tax license;
(C) Weight-mile tax reports filed late;
(D) Fees not timely paid;
(E) More than two estimated weight-mile tax reports filed;
(F) More than one estimated weight-mile tax report filed without an actual report filed within a 30-day period;
(G) Non-sufficient fund checks; and
(H) Outstanding billings for over-dimensional variance permits.
(5) Notwithstanding subsection (4)(b) of this rule, an established carrier may not qualify for a waiver of deposit if within the previous 36 months, the carrier has had a weight-mile tax audit resulting in an assessment that exceeds by more than 15% the amount of the weight-mile taxes and fees reported and paid during the audit period.
(6) The deposit required of a motor carrier may be increased, or a previously waived deposit may be required of a motor carrier, in accordance with subsection (3)(b) of this rule, if Department records indicate that:
(a) In the previous 12 months the motor carrier has had:
(A) Any suspensions with the Department;
(B) Revocation of IFTA tax license;
(C) More than one weight-mile tax report filed late;
(D) Fees not timely paid;
(E) More than two estimated weight-mile tax reports filed;
(F) More than one estimated weight-mile tax report filed without an actual report filed within 30 days;
(G) Any non-sufficient fund checks with the Department; or
(H) Outstanding billings for over-dimensional variance permits; or
(b) In the previous 36 months, the carrier has had a weight-mile tax audit resulting in an assessment that exceeds by more than 15% the amount of the weight-mile taxes and fees reported and paid during the audit period.
(7) Acceptable forms of deposit. Any motor carrier may deposit:
(a) Cash;
(b) A bond in the form prescribed and furnished by the Department of Transportation;
(c) Bonds, negotiable by delivery, of the State of Oregon, school districts therein, or obligations of the United States, or obligations for which the faith of the United States is pledged for the payment of both principal and interest, equal in value to the amount of the requested deposit; or
(d) Bank or savings and loan savings certificates.
(8) The Department reserves the right to modify or waive a deposit required by this rule if Department records indicate such modification, or waiver, is in the public interest.
Stat. Auth.: ORS 823.011 & ORS 825.506
Stats. Implemented: ORS 825.506
Hist.: PUC 120, f. 10-26-62, ef. 11-15-62 (Order No. 38811); PUC 135, f. 5-9-66, ef. 5-15-66 (Order No. 42332); PUC 148, f. 7-29-68, ef. 9-1-68 (Order No. 44783); PUC 156, f. 8-6-73, ef. 8-15-73 (Order No. 73-507); PUC 3-30, Part 1, f. & ef. 6-30-80 (Order No. 79-805); Renumbered from 860-033-0020; PUC 6-1984(Temp), f. & ef. 3-19-84 (Order No. 84-197); PUC 11-1984, f. & ef. 5-25-84 (Order No. 84-418); PUC 8-1985, f. & ef. 6-10-85 (Order No. 85-499); PUC 12-1990, f. & cert. ef. 7-6-90 (Order No. 90-950); PUC 2-1992, f. & cert. ef. 1-24-92 (Order No. 92-028); MCT 2-1996, f. & cert. ef. 2-16-96; Renumbered from 860-063-0020; MCT 3-1996, f. & cert. ef. 3-14-96; MCTB 3-1998, f. & cert. ef. 10-16-98; MCTB 1-2002, f. 6-21-02, cert. ef. 7-1-02; MCTB 4-2002, f. & cert. ef. 8-23-02
740-040-0080
Instruments Filed Become Permanent Records
All bonds, except those filed pursuant to ORS 825.166, policies or certificates of insurance filed with the Department as required by statute are permanent records and cannot be returned to insurer or removed from the custody of the Department as long as the insured is subject to regulation under ORS Chapter 825.
Stat. Auth.: ORS
823 & ORS
825
Stats. Implemented: ORS
825.506
Hist.: PUC 18, f. 1-21-55, ef. 9-1-54 (Order No. 33203); PUC 120, f.
10-26-62, ef. 11-15-62 (Order No 38811); PUC 135, f. 5-9-66, ef.
5-15-66 (Order No. 42332); PUC 148, f. 7-29-68, ef. 9-1-68 (Order No.
44783); PUC 156, f. 8-6-73, ef. 8-15-73 (Order No. 73-507);
Renumbered from 860-033-0025; MCT 3-1996, f. & cert. ef. 3-14-96;
Renumbered from 860-063-0025
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