281.655 Bonds or insurance policies.
1,232 words·~6 min read·
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(1)Before any certificate will be issued or renewed, the applicant or holder of the
certificate shall file or shall have on file with the department one
(1)or more
approved indemnifying bonds or insurance policies issued by some surety company
or insurance carrier authorized to transact business within the Commonwealth of
Kentucky. The term of each bond or policy shall be continuous and shall remain in
full force until canceled under proper notice. Each bond or policy shall have
attached thereto the state insurance endorsement. All bonds or policies required
under this section shall be issued in the name of the holder of the certificate. In lieu
of the bonds or policies, the department, under appropriate regulations, may require
the filing of one
(1)or more approved certificates of insurance, the terms of which
shall be continuous and shall remain in force and effect until canceled under proper
notice.
(2)The bonds or policies required of a U-Drive-It or automobile utility trailer lessor
shall provide public liability and property damage coverage when operated either
by the lessee or lessor thereof or agents, servants, or employees of either.
(3)All bonds or policies shall provide blanket coverage for all equipment operated
pursuant to the certificate or permit.
(4)The types and minimum amounts of insurance to be carried on each vehicle shall be
as follows:
MOTOR VEHICLES FOR THE TRANSPORTATION OF PERSONS,
INCLUDING U-DRIVE-ITS
Death of Total Liability
or Injury for Death
to Any One of or Injury Property
Capacity Person to Persons Damage
7 regular seats $100,000.00 $300,000.00 $50,000.00
8 or more regular seats $100,000.00 $600,000.00 $50,000.00
MOTOR VEHICLES FOR THE TRANSPORTATION OF PROPERTY,
INCLUDING U-DRIVE-ITS AND AUTOMOBILE UTILITY
TRAILERS
Death of Total Liability
or Injury for Death
to Any One of or Injury Property
Gross Weight Person to Persons Damage
18,000 lbs. or less $100,000.00 $300,000.00 $50,000.00
More than 18,000 lbs. $100,000.00 $600,000.00 $50,000.00
(5)Any person, firm, or corporation operating or causing to be operated any vehicle for
the transportation of petroleum or petroleum products in bulk in amounts less than
ten thousand (10,000) pounds shall have the following types and minimum amount
of insurance carried on each vehicle:
Death of Total Liability
or Injury for Death
to Any One of or Injury to Property
Person Persons Damage
$100,000.00 $300,000.00 $50,000.00
(6)Any person, firm, or corporation operating or causing to be operated any vehicle for
the transportation of hazardous material as defined in KRS 174.405, except
petroleum or petroleum products in bulk in amounts less than ten thousand (10,000)
pounds, shall have on each vehicle single limits liability insurance coverage of not
less than one million dollars ($1,000,000) for all damages whether arising out of
bodily injury or damage to property as a result of any one
(1)accident or
occurrence.
(7)Before any household goods certificate shall be issued or renewed, the applicant or
certificate holder shall file or have on file with the department an approved
insurance policy or bond compensating shippers or consignees for loss or damage to
property belonging to shippers or consignees and coming into possession of the
carrier in connection with its transportation service in the amounts required by 49
C.F.R. sec. 387.303(c) for interstate household goods motor carriers. The policy or
bond shall have attached thereto the Kentucky cargo policy endorsement and shall
be issued by some insurance or surety company authorized to transact business
within the Commonwealth of Kentucky. The term of the bond or policy shall be
continuous and shall remain in full force until canceled under proper notice. In lieu
of the bond or policy, the department, under appropriate regulations, may require
the filing of an approved certificate of insurance, the term of which shall be
continuous and shall remain in force and effect until canceled under proper notice.
(8)No insurance company or insurance carrier issuing any policy filed with the
department, and no surety or obligor on any bond or contract filed with the
department, shall be relieved from liability under the policy, bond, or contract until
after the expiration of thirty
(30)days' notice to the department of an intention to
cancel the policy, bond, or contract. A prior cancellation may be allowed in cases
where one
(1)policy, bond, or contract is substituted for another policy, bond, or
contract if the substituted policy, bond, or contract is of force and effect at a time
prior to the expiration of thirty
(30)days' notice to the department of an intention to
cancel the policy, bond, or contract for which the additional policy, bond, or
contract is being substituted. The acceptance of any notice of an intention to cancel
any policy, bond, or contract or the cancellation of any policy, bond, or contract by
the department, unless under the circumstances set forth, shall not relieve the
insurance company, insurance carrier, surety, or obligor of any liability that accrued
prior to the effective date of the cancellation.
(9)Upon the cancellation of any bond or insurance policy required by this section, all
operating rights granted by the certificate for which the bond or policy was filed,
shall immediately cease, and the department may immediately require the cessation
of all operations conducted under authority of the certificate, and may require the
immediate surrender of all certificates, licenses, and other evidence of a right to act
as a motor carrier.
(10)The department may exempt in whole or in part from the requirements of this
section any person who applies for the exemption and shows to the satisfaction of
the department that, by reason of the financial ability of the person applying, there
is due assurance of the payment of all damages for which he or she may become
liable as a result of the operation of any vehicle owned by him or her or operated
under authority of his or her certificate.
(11)The provisions of this section notwithstanding, the Secretary of Transportation may
adopt, incorporate by reference, or set forth in its entirety the provisions of Title 49,
United States Code of Federal Regulations, Part 387, relating to the levels of
financial responsibility for motor carriers, in effect as of June 24, 2015, or as
amended after that date, with respect to any motor carrier operating in Kentucky.
(12)The cabinet shall promulgate administrative regulations to set standards for pre-trip
acceptance liability policies and prearranged ride liability insurance policies for
transportation network company vehicles. The minimum amount of insurance for
pre-trip acceptance liability policies shall be fifty thousand dollars ($50,000) for
death and personal injury to one
(1)person, one hundred thousand dollars
($100,000) for death and personal injury resulting from one
(1)incident, and
twenty-five thousand dollars ($25,000) for property damage. The minimum amount
of insurance for prearranged ride liability policies shall be the same as for motor
vehicles for the transportation of persons under subsection
(4)of this section. Pre-
trip acceptance liability policies and prearranged ride liability policies may be
issued by an eligible surplus lines insurer.
(13)Notwithstanding any other provision of this section, any fully autonomous vehicle
operating under a certificate issued under this chapter shall have on file with the
department indemnifying bonds or insurance policies in the minimum amounts of:
(a)One million dollars ($1,000,000) of total liability for death of or injury to
persons resulting from any one
(1)accident; and
(b)One million dollars ($1,000,000) for property damage.