MTC Basics
What is Motor Truck Cargo insurance?
Covers loss of or damage to property of others being transported by truck.
What is the Carmack Amendment?
This federal amendment governs interstate cargo claims and limits carrier liability to actual loss or injury to property.
Why loss history provided in a submission?
Underwriters use this to estimate how much premium is needed to cover an average year’s losses.
What is the insuring agreement?
This policy section explains how coverage applies and what causes of loss are covered.
What is delay or loss of use?
This exclusion removes coverage for loss of income caused by late delivery.
What is care, custody, and control?
Applies while goods are in the carrier’s responsibility under this legal concept during transit.
What is at delivery to the carrier (good condition)?
To start a Carmack claim, the shipper must show the freight was undamaged at this point.
Why are gross receipts a CG exposure?
It is the revenue tied to the loads the insured is hauling.
What does “we will indemnify” mean?
This wording means the insurer reimburses the insured after the insured pays the claim.
DAILY DOUBLE (400) What is the preferred language we want in a policy?
What is employee dishonesty?
This exclusion applies to theft committed by drivers, including owner operators.
What is a common carrier?
Under this role, a motor carrier transports cargo under a bill of lading or shipping receipt.
What is negligence?
A carrier can only rely on Carmack defenses if it is free of this contributing factor.
Why is mileage a CG exposure?
True picture of what the insured runs or operates on the road when fuel surcharge or revenue can distort the exposure.
What is Earned Freight?
This coverage relates to charges the carrier would have earned had delivery been completed.
What is spoilage or change in temperature?
These exclusions commonly create issues for refrigerated and food carriers.
DAILY DOUBLE (600 pts): What coverage(s) can add this back? Explain why you chose this coverage.
What is a contract carrier?
Under this role, a motor carrier transports cargo based on the terms of a contract with a shipper.
What is the purpose of the BOL (Bill of Lading)?
Cargo shipped without this document is typically excluded from coverage.
What is driver turnover?
This underwriting factor measures how frequently drivers leave and must be replaced.
What is Debris Removal?
This sublimit applies to the cost of picking up and removing scattered cargo.
What is rust or corrosion?
This exclusion can cause flatbed loads to be rejected after exposure to moisture.
What are terminals?
Motor Truck Cargo coverage can extend to property at these locations if scheduled with a limit.
DAILY DOUBLE (1000) What does Travelers call terminal locations on a quote or policy?
What is direct physical loss?
Motor Truck Cargo coverage generally requires this type of loss to trigger coverage.
What is mechanical breakdown?
This term refers to a failure of equipment.
DAILY DOUBLE (1,000 pts): Does endorsement include driver error? Why or why not?
What is Pollutant Clean Up and Removal?
This sublimit applies when cargo seeps into land or water, and sometimes air.
What is voluntary parting?
This exclusion applies when cargo is voluntarily given to the wrong party.