29- 250 C.M.R. ch. 153, § 8

Current through 2024-50, December 11, 2024

Section 250-153-8 - INSURANCE

A. No permit and/or registration will be issued by the Secretary of State until evidence of appropriate insurance has been provided for each motor vehicle to be operated. For intrastate carriers an insurance policy, or policies, or a surety bond shall be written only by an accepted company on forms approved by the Superintendent of Insurance. Evidence of appropriate insurance be filed with the Secretary of State on the State of Maine Form JB revised. The form shall be in duplicate, and signed by an authorized representative of the company certifying that coverage exists in no less amounts than as provided for in Title 29-A Section 1611. Insurance may be filed electronically in place of paper filings.

In filing evidence of insurance with the Secretary, the insuring company agrees to pay any final judgment recovered against the Insured for bodily injury to or death of any person or loss of, or damage to property of others (excluding injury to or death of the Insured's employees while in the course of their employment and loss of or damage or property of the Insured and property transported by the Insured designated as cargo), resulting from the negligent or willful operation, maintenance or use of motor vehicles (including any motor vehicles substituted for or added to those scheduled) under a permit issued to the Insured by the Secretary, or otherwise, within the limits required herein, regardless of whether such motor vehicles are specifically listed in the policy or bond.

It is understood and agreed that upon failure of the Company to pay a final judgment recovered against the Insured, the judgment creditor may maintain an action in court of competent jurisdiction against the Company to compel such payment.

The bankruptcy or insolvency of the Insured shall not relieve the Company of any of its obligations under the policy. Nothing contained in the policy or bond or any endorsement thereon shall relieve the Company from liability or from payment of any such final judgment. The liability of the Company extends to losses, damages, injuries or deaths whether occurring on the route or in the territory authorized to be served by the Insured or elsewhere.

Any cancellation of a policy of bond on file with the Secretary of State shall not take effect until after thirty (30) day notice. This notice shall be completed in writing by the insuring or bonding company on the Uniform Notice of Cancellation of Motor Carrier Insurance Policies (Form K). The thirty (30) day notice shall commence from the date the notice is received by the Secretary of State at Commercial Vehicles Division.

In the event that the carrier has obtained a policy or bond from another insurance company, and such insurance or other security becomes effective prior to the effective date of said 30 days, cancellation shall be effective as of the effective date of such other insurance or receipt of security.

B. In the case of equipment leased to the holder of a permit, insurance coverage must be provided for both the lessor and the lessee, filed with and approved by the Secretary prior to issuance of operating authority.

Where two or more policies affording valid and collectible liability insurance apply to the same motor vehicle, or where the lessor under a trip lease agreement has agreed to hold the lessee harmless from liability, or in all other cases where liability has been assumed by oral or written agreement and insurance policy provisions would exclude such assumption of liability, in an occurrence out of which a liability loss shall arise, the insurance afforded by that policy in which such motor vehicle is described or rated as an owned motor vehicle shall be primary and the insurance afforded by any other policy or policies shall be excess.

C. It shall be the duty of all such persons to arrange for continuity of coverage as provided in the foregoing. In the event of expiration or cancellation of coverage, such persons must arrange prior to the date of such expiration or cancellation, for renewed coverage effective as of the date of said expiration or cancellation and to see that the aforesaid evidence of such coverage is at all times on file at the offices of the Secretary.

In the event of failure on the part of any person to have evidence of appropriate insurance coverage for any motor vehicle or vehicles on file with the Secretary, the permit shall become void and of no effect as of the date of expiration or cancellation of coverage. The person shall immediately surrender such permit, vehicle registration certificate, [license] plate, and stickers to any representative of the Secretary of State holding a pick-up order from the Secretary of State demanding the return thereof or upon receipt of such pick-up order by certified mail.

29- 250 C.M.R. ch. 153, § 8