AUTHORITY: Implementing Sections 18c-1901 through 18c-1905 and authorized by Section 18c-1202(9) of The Illinois Commercial Transportation Law [625 ILCS 5/18c-1101, 18c-1202(9) and 5/18c-1901 through 1905].

SOURCE: Emergency rule at 4 Ill. Reg. 2, p. 237, effective January 1, 1980, for a maximum of 150 days; adopted at 4 Ill. Reg. 23, p. 71, effective May 28, 1980; codified at 8 Ill. Reg. 13670; Part recodified at 10 Ill. Reg. 18002; Part repealed, new Part adopted at 11 Ill. Reg. 16472, effective October 1, 1987; amended at 18 Ill. Reg. 11162, effective July 1, 1994.

SUBPART A: INSURANCE OR BOND COVERAGE

 

Section 1425.10  Licenses Conditioned Upon Compliance With Insurance Requirements

 

A license or registration issued by the Illinois Commerce Commission ("Commission") to a motor carrier of property has force and effect only while the carrier is in compliance with requirements for the filing of proof of insurance or bond coverage.

 

(Source:  Amended at 18 Ill. Reg. 11162, effective July 1, 1994)

 

Section 1425.20  Proof of Insurance or Bond Coverage

 

a)         The Illinois Commerce Commission incorporates by reference 49 CFR 1023.51 through 1023.65, 1023.71, 1023.72, and 1023.81 as of December 1, 1986, as its regulations governing the filing of proof of insurance or bond coverage of cancellation, except as otherwise provided in this Part.

b)         The filing of such proof shall constitute acceptance of the minimum terms required by this Part or by statute and shall bind the insurance company thereto.

c)         Such coverage shall remain in effect until a cancellation form is filed with the Commission or the coverage is cancelled by the filing of a subsequent form E or H certificate of insurance.

d)         Regulated interstate motor carriers of property which use Illinois as their registration state shall file a copy of public liability and property damage insurance or bond coverage that is filed with the Interstate Commerce Commission in accordance with the provisions of Section 11506 of the Interstate Commerce Act (49 USC 11506).

e)         No incorporation in this Section contains any later amendments or editions.

f)         For Illinois domiciled carriers, and for Illinois licensed intrastate carriers, regardless of domicile, such coverage shall be executed by an admitted insurance company authorized under the laws of the State of Illinois to deliver commercial automobile insurance contracts within the State.

 

(Source:  Amended at 18 Ill. Reg. 11162, effective July 1, 1994)

 

Section 1425.30  Public Liability and Property Damage Coverage

 

The minimum amounts of public liability and property damage insurance coverage required of all motor carriers of property shall be the amounts required by 49 CFR 1043.2, November 13, 1990, "Security for the protection of the public:  Minimum limits".

 

(Source:  Amended at 18 Ill. Reg. 11162, effective July 1, 1994)

 

Section 1425.40  Cargo Damage Coverage

 

a)         The minimum amounts of cargo damage coverage required of all motor common carriers of property shall be as required by the provisions of 49 CFR 1043.2(c), November 13, 1990, except as specified in subsection (b) below.

b)         The minimum amounts of cargo damage coverage required of intrastate motor common carriers of property transporting unprocessed agricultural commodities and ordinary livestock shall be $5,000 liability for the unprocessed agricultural commodities, milk in bulk, commodities in dump-type vehicles, or ordinary livestock carried on each vehicle at any one time.

c)         Waiver of Requirement.  An intrastate motor common carrier of property may be excused from the requirement of filing proof of cargo insurance if:

1)         The carrier has filed with the Commission a completed copy of the Commission's Cargo Insurance Waiver Affidavit form stating that the carrier will not, at any time, carry in any vehicle cargo with a value exceeding $5,000, and the carrier does not, at any time, carry cargo in any vehicle with a value exceeding $5,000; and

2)         The carrier advises each shipper in writing, prior to rendition of the service, that it does not carry the minimum level of cargo insurance.  The burden of proving compliance with this latter requirement shall be on the carrier.

 

(Source:  Amended at 18 Ill. Reg. 11162, effective July 1, 1994)

 

Section 1425.50  Collect On Delivery ("C.O.D.") Bond Coverage

 

a)         The minimum amount of C.O.D. insurance or bond coverage required of a motor common carrier of property for each shipper or consignee for failure of the carrier to remit payment of C.O.D. monies is $10,000.

b)         Waiver of requirement.  An intrastate motor common carrier of property may be excused from the requirement of filing proof of C.O.D. insurance or bond coverage if:

1)         The carrier has filed with the Commission a completed copy of the Commission's C.O.D. Bond Waiver Affidavit form stating that the carrier will not, at any time, accept a C.O.D. shipment, and the carrier does not, at any time, accept a C.O.D. shipment; and

2)         The carrier advises each shipper in writing, prior to rendition of the service, that it does not accept C.O.D. shipments.  The burden of proving compliance with this latter requirement shall be on the carrier.

SUBPART B: SELF-INSURANCE

 

Section 1425.110  Effect of Qualification as Self-Insurer

 

A carrier which has been authorized by order of the Commission to act as a self-insurer is not required to file proof of insurance or bond coverage under this Part.

 

Section 1425.120  Minimum Requirements for Self-Insurers

 

The minimum requirements for a carrier to qualify and continue to act as a self-insurer are:

a)         Net worth of:

1)         $500,000, if the carrier operates less than 25 vehicles;

2)         $750,000, if the carrier operates from 25 to 100 vehicles; and

3)         $1,000,000, if the carrier operates more than 100 vehicles.

b)         Property with a value of $500,000 or more located within the State of Illinois, free from all liens.

 

Section 1425.130  Reports to be Filed by Self-Insurers

 

Each motor carrier of property authorized to be a self-insurer shall file a report with the Commission, not later than the 20th day following the end of each calendar quarter, listing all accidents, injuries, and fatalities arising out of such carrier's operations within the State of Illinois; and claims filed against such carrier of the type for which the carrier is a self-insurer, which have occurred or been filed during the reporting period.  The quarterly reports shall also state whether the carrier continues to meet the qualifications for self-insurers listed in Section 1425.120.

 

Section 1425.140  Revocation of Authorization to be a Self-Insurer

 

a)         Whenever, after inspection of reports filed pursuant to Section 1425.130, the Commission finds that a carrier no longer meets the minimum requirements of Section 1425.120 for self-insurance, the Commission shall institute a proceeding pursuant to 83 Ill. Adm. Code 200 to suspend or revoke the carrier's authorization to be a self-insurer.

b)         If a carrier fails to file the reports required by Section 1425.130, the Commission shall institute a proceeding pursuant to 83 Ill. Adm. Code 200 to suspend or revoke the carrier's authorization to be a self-insurer.

c)         Based upon the accident information supplied in the reports filed pursuant to Section 1425.130, the Commission may institute a proceeding pursuant to 83 Ill. Adm. Code 200 to suspend or revoke a carrier's authorization to be a self-insurer.

 

Section 1425.150  Reinstatement

 

A carrier that has had its authorization to be a self-insurer suspended or revoked may petition the Commission pursuant to 83 Ill. Adm. Code 200 for reinstatement of its status as a self-insurer.  A carrier shall be reinstated if it has remedied the grounds for the suspension or revocation.