Given the potential for catastrophic trucking accidents, insurers for the trucking industry are certainly aware of legally mandated policy endorsements that can increase their exposure well beyond the policy terms.
Under the Motor Carrier Act of 1980 (MCA), interstate motor carriers must show proof of financial responsibility to maintain their operating permits. Therefore, their liability insurers typically include an "MCS-90″ endorsement on their policies.
This MCS-90 endorsement is designed to protect the motoring public by guaranteeing a minimum level of compensation for injured claimants (currently $750,000). However, recent court decisions have ignored the purpose of the endorsement and ordered "stacking" of multiple endorsements, mandating that underwriters and claims people work together to limit an insurer's exposure. Other issues have arisen as well.
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