§ 23-13-227 — Certificates and permits - Security for the protection of the public

Arkansas § 23-13-227

• Jurisdiction: Arkansas
• Title: 23

Text

(a) No certificate or permit shall be issued to a motor carrier or remain in force unless the carrier complies with such reasonable rules as the Arkansas Department of Transportation shall prescribe governing the filing and approval of surety bonds, policies of insurance, qualification as a self-insurer or other securities or agreements in such reasonable amount as the department may require, conditioned to pay, within the amount of the surety bonds, policies of insurance, qualifications as a self-insurer or other securities or agreements, any final judgment recovered against the motor carrier for bodily injuries to or the death of any person resulting from the negligent operation, maintenance, or use of motor vehicles under the certificate or permit or for loss or damage to the property of others. (b) (1) In its discretion and under such rules as it shall prescribe the department may require any such common carrier to file a surety bond, policies of insurance, qualifications as a self-insurer, or other securities or agreements, in a sum to be determined by the department, to be conditioned upon the carrier making compensation to shippers or consignees for all property belonging to shippers or consignees and coming into the possession of such carriers in connection with its transportation service. (2) Any carrier which may be required by law to compensate a shipper or consignee for any loss, damage, or default for which a connecting motor common carrier is legally responsible shall be subrogated to the rights of the shipper or consignee under any such bond, policies, or insurance or other securities or agreements, to the extent of the sum so paid, plus any court costs and reasonable attorney's fees paid by the carrier in defending any action brought thereon by the shipper or consignee. (c) The reasonable rules of the department authorized by this section shall conform as nearly as may be consistent with the public interest to those rules made by the United States Surface Transportation Board from time to time with respect to surety for the protection of the public by motor carriers engaged in interstate or foreign commerce. (d) Any motor carrier who has qualified as a self-insurer in accordance with the rules of the United States Surface Transportation Board governing motor carriers engaged in interstate or foreign commerce shall be prima facie deemed qualified as a self-insurer in the State of Arkansas. (e) In any action against any motor carrier operating under the provisions of this subchapter, whether in law or equity, the insurer, insurance company, or obligor in any policy of insurance or bond given by the carrier in compliance with this section shall not be joined as a party to the suit and shall not be a proper party thereto. (f) Upon any motor carrier's failure to pay any final judgment rendered against it, the judgment creditor may maintain an action in any court of competent jurisdiction against the insurer, insurance company, or obligor in any policy of insurance, or bond, or obligation, filed under this section, to compel payment of the judgment.

Legislative History

Amended by Act 2019, No. 315,§ 2427, eff. 7/24/2019. Amended by Act 2017, No. 707,§ 202, eff. 8/1/2017. Acts 1955, No. 397, § 15; A.S.A. 1947, § 73-1768.