In the know

The rate of crash occurrence used by the FMCSA to gauge safety performance during audits, expressed per-million-miles.

The specific risk characteristics an insurer desires and is willing to underwrite.

The outcome assigned to a motor carrier following a DOT audit by the FMCSA, indicating its overall level of compliance with federal safety regulations. Possible results are Satisfactory, Conditional, Unsatisfactory, or Not Rated.

• Unsatisfactory

  The motor carrier does not have adequate safety management controls, posing an imminent hazard to public safety.

• Conditional

  The motor carrier lacks adequate controls in one or more areas and requires improvement.

• Satisfactory

  The motor carrier has adequate safety management controls in place.

• Not Rated

  The motor carrier has not yet undergone an audit or received a formal rating.

Permission from the FMCSA to participate, for compensation, in the transporting of goods or passengers across state lines.

• Broker of Household Goods

  Receives compensation for arranging transportation of household goods for others using a third-party motor carrier without ever taking possession of the freight.

• Broker of Property (Except Household Goods)

  Receives compensation for arranging transportation of property (other than household goods) for others using a third-party motor carrier without ever taking possession of the freight.

• Motor Carrier of Household Goods

  For-hire motor carrier authorized to transport household goods for the public using their own equipment, typically bundling services like estimates, packing, and in-home loading/unloading.

• Motor Carrier of Property (Except Household Goods)

  For-hire motor carrier authorized to transport regulated commodities, other than household goods, for the public using their own equipment.

• Motor Carrier of Passengers

  For-hire motor carrier authorized to transport passengers across state lines.

• Freight Forwarder of Household Goods

  Arranges for and takes physical possession of for-hire household goods shipments end-to-end, using third party motor carriers to perform the actual transport.

• Freight Forwarder of Property (Except Household Goods)

  Receives compensation for arranging end-to-end transportation of property (other than household good) for others using a third-party motor carrier, but does take physical possession of the goods, often packing, storing and/or consolidating cargo.

• Enterprise Motor Carrier of Household Goods

  A U.S.-headquartered household goods motor carrier majority-owned (over 55%) by a Mexican citizen or resident alien, authorized to transport international household goods to or from Mexico.

• Enterprise Motor Carrier of Property (Except Household Goods)

  A U.S.-headquartered motor carrier majority-owned (over 55%) by a Mexican citizen or resident alien, authorized to transport international cargo to or from Mexico.

• Mexico Domiciled Motor Carrier of Household Goods

  A Mexico-based for-hire motor carrier authorized to transport household goods between Mexico and the U.S.

• Mexico Domiciled Motor Carrier of Property (Except Household Goods)

  A Mexico-based for-hire motor carrier authorized to transport regulated property, other than household goods, between Mexico and the U.S.

• Mexico Domiciled Private Motor Carrier of Property (Except Household Goods)

  A Mexico-based motor carrier authorized to transport its own property (not for-hire) between Mexico and the U.S.

• Emergency Temporary Authority

  Expedited operating authority granted to a motor carrier during a declared emergency to provide direct disaster relief assistance; it expires when the emergency declaration ends.

The percentile rankings of a motor carrier as defined by the Federal Motor Carrier Safety Administration's (FMCSA) official Safety Measurement System (SMS) across seven safety categories, comparing each motor carrier's safety performance to peers using officially observed safety inspections, violations and crashes from the past 24 months.

• Unsafe Driving

  A carrier's percentile ranking for violations involving reckless or careless operation of a commercial vehicle.

• Crash Indicator

  A carrier's percentile ranking based on the rate and severity of crashes reported to the Federal Department of Transportation (DOT).

• Hours of Service Compliance

  A carrier's percentile ranking for violations of federal limits on driving and on-duty time.

• Vehicle Maintenance

  A carrier's percentile ranking for violations found during inspection related to a vehicle's mechanical fitness.

• Controlled Substances and Alcohol

  A carrier's percentile ranking for violations tied to drug and alcohol testing, possession, or use by drivers.

• Driver Fitness

  A carrier's percentile ranking for violations involving a driver's licensure qualifications, medical certifications, and training requirements.

• Hazardous Materials Compliance

  A carrier's percentile ranking for violations specific to the transportation of hazardous materials, including improper securement, labeling, and documentation.

A practice where an agent or producer sends an incomplete submission for a specific motor carrier, not necessarily to bind coverage, but to lock out another agent from quoting that motor carrier with that same insurer.

A motor carrier that re-registers their authority under a new name and DOT number while continuing to operate the same underlying business in an attempt to evade FMCSA enforcement, a poor safety rating, an out-of-service order, unpaid fines, or high insurance costs tied to its other identity.

An agency within the U.S. Department of Transportation (US DOT), created in the year 2000, primarily responsible for regulating and providing safety oversight of commercial motor vehicles operating within the United States.

A pact known as the International Fuel Tax Agreement among U.S. states and Canadian provinces that allows interstate motor carriers to file one quarterly fuel tax report with their base jurisdiction, rather than filing separately with each jurisdiction where they operate.

A 0–100 rating assigned to trucking companies by the FMCSA, calculated from a carrier's safety violations, inspection results, and crash data, and used by inspectors and bypass systems to decide in real time whether a truck gets pulled for inspection.

• Inspect

  Marked red. A score of 75–100 puts a carrier in the highest-risk group, and inspection is highly recommended.

• Optional

  Marked yellow. A score of 50–74 leaves the inspection decision up to the officer's discretion.

• Pass

  Marked green. A score of 0–49 signals a good safety record, and the vehicle is typically waved through without inspection.

The commonly understood market name for one or more insurance companies with a single reputation in the marketplace as an individual market actor.

An actuarial or underwriting estimate of the losses an insurance policy is expected to incur in the upcoming period, typically calculated by applying a multiple to annualized losses from a 3- or 5-year historical period.

A company that operates commercial motor vehicles to transport property or passengers, either for compensation or as a private carrier of its own goods, as registered with the FMCSA.

Not an acronym, but Latin for "movement" or "progress" it is the U.S. Department of Transportation's registration system for the commercial motor vehicle transportation industry.

A member-owned liability insurance company, chartered in one state under the federal Liability Risk Retention Act of 1986, that insures businesses with similar or related operations and can operate across all states under that single charter.

The distinct legal insurance company name on which an insurance policy is written.