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The Motor Carrier Act of 1980 requires carriers to demonstrate that they are insured against damages they cause. They can fulfill this responsibility by a MCS-90 endorsement attached to contract insurance, a surety bond, or through self insurance. The issue in the case of Jason Wells versus Gulf Insurance Co. was whether an endorsement -- the form of which is prescribed by the MCA's implementing regulations -- requires an excess insurer to drop below its liability floor and pay a judgment when it is the first solvent insurer. The district court thought so, but on appeal this decision was reversed by the US District Court of Appeals. To read all the details, please click here.
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