Property and Casualty Insurance Practice Exam

What requirement did the Motor Carrier Act of 1980 place on trucking companies?

1. To provide insurance for cargo transported

2. To obtain certification of financial responsibility for liabilities

3. To limit the number of trucks in operations

4. To employ a certain number of drivers

The correct answer is: To obtain certification of financial responsibility for liabilities

The Motor Carrier Act of 1980 significantly deregulated the trucking industry, allowing for greater flexibility in operations. However, it also imposed certain safety and financial responsibility requirements on trucking companies to ensure that they could cover liabilities related to accidents and other incidents. By mandating that trucking companies obtain certification of financial responsibility, the Act helps assure that these companies are capable of covering damages or injuries caused by their operations. This certification typically involves maintaining a minimum level of liability insurance, thus protecting the public and promoting safe, responsible practices within the industry. This provision was crucial in establishing a framework that balances deregulation with the need for financial accountability and safety in the transportation of goods. The other options, while they may pertain to general trucking industry operations or prior regulations, do not directly reflect the core requirement set out by the Motor Carrier Act of 1980.