The motor carrier form follows in many respects the language of the truckers coverage form. As befits its purpose, however, the motor carrier form does present different provisions so as to fit coverage more precisely to the loss exposures faced by today's common and private motor carriers. The following discussion highlights the provisions on CA 00 20 that make it a distinct coverage form. For more detailed information on the motor carrier coverage form, see Motor Carrier Coverage Form—Covered Autos. For more information on the truckers form, see Truckers Coverage Form.

Symbols

The motor carrier coverage form makes use of a set of numerical symbols for designating which autos qualify as “covered autos”. Item two of the declarations is the schedule of coverages and covered autos, with the symbols entered next to a coverage on the declarations to show just which particular coverage is provided for which particular auto.

The symbols range from “61″ (any auto) to “79″ and, despite the different numbers that are used on the respective forms, the motor carrier form and the truckers form cover the same types of vehicles, with one exception; that exception is “owned private passenger type autos only”. CA 00 20 uses symbol “63″ to denote covered auto status for the private passenger type autos owned by the named insured, including those private passenger type autos that the named insured acquires ownership of after the policy begins. Symbol “63″ can be used for any coverage under the motor carrier form. It might be used as an underwriting tool when an insurer is willing to cover a fleet of private passenger autos, but does not want to insure liability for larger vehicles that the insured might acquire during the policy period. An equally practical application might be for uninsured motorists coverage in a state where uninsured motorists coverage is not mandatory and the insured only wishes to have the coverage on its private passenger type vehicles.

The term “private passenger type” is defined on CA 00 20 as a private passenger or station wagon type auto and includes an auto of the pickup or van type if not used for business purposes. This does not mean that insureds who use vans or pickups for business purposes can not use the motor carrier form to provide coverage for those vehicles. Symbol “64″ on CA 00 20 applies to commercial autos, including trucks, and the commercial lines manual treats pickups and vans used for business purposes as trucks; so if the insured is using a van for motor carrier business, symbol “64″ would be the proper symbol to cover that exposure.

Who Is Insured

The clauses in the “who is an insured” section of CA 00 20 closely track with those found in the business auto coverage form. For more information on this form, see Business Auto Form—Liability Part.

Under the motor carrier form, the named insured is an insured, naturally, for any covered auto. Anyone else while using with the permission of the named insured a covered auto owned, hired, or borrowed by the named insured is an insured, with certain exceptions. For example, the owner or any employee, agent, or driver of the owner, or anyone else from whom the named insured hires or borrows a covered auto is not an insured under the CA 00 20 provisions. Also, the named insured's employees or agents are not considered as insureds if the covered auto is owned by that employee or agent or a member of his or her household.

The next category of insureds includes the owner or anyone else from whom the named insured hires or borrows a covered auto that is a trailer while the trailer is connected to another covered auto that is a power unit. CA 00 20 also states that the lessor of a covered auto (not a trailer), or any employee, agent, or driver of the lessor is an insured while the auto is leased to the named insured under a written agreement; this is so as long as that written agreement does not require the lessor to hold the named insured harmless and as long as the leased auto is used in the named insured's business as a motor carrier for hire. This category of insureds attempts to give coverage to those entities from whom the named insured hires or borrows or leases a vehicle for business purposes. This is a logical step since the owners of such vehicles would naturally be brought into a claim or lawsuit arising out of an accident simply because of their status of ownership.

Finally, anyone liable for the conduct of an insured is considered an insured, but only to the extent of that liability.

The motor carrier form also lists who is not considered an insured. The clauses in this part of the form apply to motor carriers who are self-insured or are bonded in compliance with Interstate Commerce Commission or Department of Transportation regulations and to those who do not have primary insurance. The insurer is simply stating here that, while it offers coverage for the named insured and certain others, it does not wish to extend that coverage to those who do not have (or who do not choose to purchase) primary insurance coverage.

Also not considered as insureds under CA 00 20 are rail, water, or air carriers, their employees or agents. These entities are not motor carriers in accordance with the spirit and definition of the motor carrier coverage form and should have insurance under aviation or marine policies that serve as more appropriate tools for those particular types of exposures.

Various Coverages

The liability coverage insuring agreement and the exclusions that apply to the liability coverage are the same on the motor carrier form as those that appear on the business auto form and the truckers form. Also, the trailer interchange coverage and the physical damage coverage under CA 00 20 mirror those particular coverages found on other commercial auto insurance forms. Trailer interchange coverage, so important to people and organizations like truckers and motor carriers, is discussed more fully in the Casualty volume; see Truckers Coverage Form.

Definitions

Most of the definitions on the motor carrier form are the same as those found on other ISO commercial insurance forms; however, CA 00 20 does somewhat particularize the definitions. For example, the form states that an insured contract does not include that part of any contract or agreement that holds harmless a person or organization engaged in the business of transporting property by auto for hire for the named insured's use of a covered auto unless the covered auto is used in the named insured's business as a motor carrier for hire. Basically, what the insured contract provision here is saying is that if the named insured leases an auto and that lease calls for the named insured to hold the lessor harmless, the named insured's motor carrier form will not consider that hold harmless agreement an insured contract unless the leased auto is used in the business of the named insured as a motor carrier for hire.

Also, a motor carrier is defined as a person or organization providing transportation by auto in the furtherance of a commercial enterprise. This is a rather broad definition that acts as a guideline to say just what type of entity should be insured by a motor carrier coverage form. Any person or organization that uses a land motor vehicle designed for travel on public roads to convey something from one place to another in the furtherance of his or her chosen business can be included in this definition of a motor carrier.

Due to the broad nature of the definition, a question can arise as to what difference there is between a motor carrier and a trucker, especially since a trucker is to be insured under a truckers coverage form (CA 00 12 03 06). The commercial lines manual, division one—automobile, does have separate definitions for motor carrier and trucker, with the distinction being that a motor carrier provides transportation in the furtherance of a commercial enterprise and a trucker is in the business of transporting goods, materials, or commodities for another. In other words, a trucker holds himself or herself out to the public as a transporter of goods and materials—that is his or her business, the be-all and end-all of the business. A motor carrier is in a business wherein transporting something is just a part of a much wider commercial enterprise.