Motor carriers are required to have their policies endorsed under the Motor Carrier Safety Act of 1980. The MCS-90 endorsement is the most common of endorsements and provides evidence of the motor carrier having met the minimum levels of insurance coverage. What happens when there is a policy exclusion or limitation thereby reducing the motor carriers’ insurance coverage?
When a policy exclusion is raised, the motor carrier insurance company is alleging that no coverage exists under the terms of the insurance policy and thus they have no duty to compensate an injured victim. Thankfully, this tactic is not enough for the motor vehicle company to avoid its responsibilities.
Case law has established that the MC-90 endorsement provides coverage even when the underlying policy does not. Case law establishes this point because the MC-90 endorsement provides that “no condition, provision, stipulation, or limitation contained in the policy … or violation thereof, shall relieve the company from liability.” Thus even if the insurer of the motor vehicle company attempts to make an insurance defense they may still be liable as a result of the strict construction of the MCS-90 endorsement language.
All of this description of insurance coverage is here to explain that if you suffer a personal injury in a car accident involving someone with an MCS-90 endorsement, there is more than one way to ensure that your rights are protected.