Definitions used in Commercial Truck Insurance
•IFTA – Interstate Fuel Tax Agreement – Report all interstate carriers keep
track of miles in each state that they drive through. They pay fuel tax based on
the miles traveled.
• MCS-150 Motor Carrier Safety 150 Report – Report all Truckers must fill
out to be compliant with Federal Motor Carrier Safety Act. Can be viewed on
SAFER or CAB website.
• BCM 34 Federal Filing – For common carrier Cargo compliant
• 91X Federal Filing for Liability – compliance either
• Motor Carrier – A company that provides truck transportation. There are
two types of motor carriers.
– Contract Carrier – Provides for hire truck transportation to specific individual
shippers based on contracts. Must file liability insurance.
– Common Carrier – Provides for hire truck transportation to the general public.
Must file both liability and cargo insurance.
• Out of Service – When a carrier is stopped and not allowed to move on
because the inspector believes there is a mechanical condition or load is
hazardous to operate and likely to cause an accident or a breakdown
• Private Carrier – Company that provides truck transportation of its own
cargo, usually as part of a business that produces, uses, sells and or buys the
cargo being hauled.
• For Hire Carrier – Company that transports cargo of others and is paid for it.
To operate as an interstate for hire carrier, a company must register with
Federal Motor Carrier Safety Administration. There are two types of for hire
• Motor Truck Cargo – Cargo once it is loaded onto the truck. Covers loss to
• General Liability – Covers Trucker for losses associated with hauling. Slip &
fall, damage to goods not on truck.
• Trailer Interchange – Physical Damage coverage on trailers of others by
interchange agreement between two parties. Usually is figured by a limit and
trailer days. Charge daily rated based on the physical damage. Number of
days that a trucker pulls a trailer he does not own. Often used with Rail
• Non Owned Physical Damage – Usually amounts will be determined by
owner of the trailer
• Intermodal Freight – Containerized freight where in the entire container is
loaded intact between different modes of transportation such as ships, trains
• Owner Operator – Owns their own truck and hire on with a carrier
• Dead Head – Non Trucking Liability traveling in a truck with no trailer
• Hopper bottom trailer – Trailer that delivers its goods from the bottom of the
trailer. Bottom opens up. Good for haulers of sticky material like coal &
• End Dump – Dumps by hydraulic means up and out
• Mechanical Dumps – Conveyor system to deliver goods out the rear with no
trailer lift. Good for hauling sticky material like coal & coke.
• Named Driver Exclusion – Excludes specific drivers from policies