Purpose
The MCS-90 Endorsement Notice addresses the insurer's potential federal financial-responsibility obligation under the Motor Carrier Act of 1980 while preserving all policy-based coverage defenses against the insured motor carrier.
When to Send
Send this letter when a commercial-auto claim involves an interstate or intrastate motor carrier subject to 49 U.S.C. § 13906 / 49 C.F.R. Part 387 and the investigation suggests the loss may fall outside the four corners of the policy but within the MCS-90's public-protection reach.
Required Components
1. Claim & Vehicle Facts
Identify the claim ({{claim_number}}), date of loss ({{date_of_loss}}), motor carrier ({{insured_name}}, USDOT {{usdot_number}}), power unit ({{vehicle_year}} {{vehicle_make}} {{vehicle_vin}}), and trailer if applicable.
2. Policy & Endorsement Citation
Cite the policy ({{policy_number}}) and the MCS-90 endorsement by form number. Reference 49 U.S.C. § 13906 and 49 C.F.R. § 387.15 as the statutory basis for the endorsement.
3. Scope of the MCS-90
Explain that the MCS-90 obligates the insurer to pay any final judgment recovered against the insured for public liability resulting from the negligent operation of motor vehicles subject to the financial- responsibility requirements — regardless of whether the vehicle is listed on the policy or the operation is otherwise covered.
4. Reservation of Rights Against the Insured
State that any payment made under the MCS-90 is a surety-style obligation running to the injured public, and that the insurer reserves the right to seek reimbursement from the insured for any amount paid that falls outside the policy's underlying coverage.
5. Coverage Investigation Items Still Open
List the specific coverage issues under review (e.g., scheduled-vehicle question, authorized-use exclusion, scope-of-business question, loaned- driver issue) and request any documents needed to complete the investigation.
Jurisdiction Notes
Universal
Most states recognize the MCS-90 as supplementary to state financial- responsibility laws; a parallel state-form filing (Form E / BMC-91) may apply for intrastate operations. Review the state's certificate-of- insurance filings before issuing this letter.
Adjuster Guidance
- Confirm the carrier's operating authority and the vehicle's registration
- Distinguish clearly between MCS-90 financial-responsibility exposure and
- Preserve the reimbursement right in writing; silence may be read as a
- Coordinate with coverage counsel if the loss involves a non-scheduled
