Flames engulf a tractor-trailer and tour bus after they collided near Orland, Calif. on Apr. 10, 2014, killing 10. (AP Photo)

Current required minimum liability limits for motor carriers are insufficient to cover the costs of rare but catastrophic crashes, the Federal Motor Carrier Safety Administration (FMCSA) says, adding that it plans to develop a proposed rule to address the issue.

Industry observers acknowledge that catastrophic crashes can and do exceed current minimum limits, but wonder about the impact on rates and claims payments should those limits be raised. For its part, the FMCSA says its study did not assess potential premium increases as a regulatory cost, noting the lack of available information on underwriting and pricing practices from both insurers and motor carrier risk managers.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • 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?


NOT FOR REPRINT

© 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.

Dig Deeper

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.