No Proof of Financial Responsibility

On August 9, 2009 a commercial passenger carrier (Tierra Santa of Van Nuys, CA) vehicle/driver was subject to a Level II inspection. The officer performing the inspection determined there was "no proof of financial responsibility", however, this is not a out-of-service violation. Eight months later Tierra Santa was involved in an accident involving fatalities and critical injuries. No financial responsibility was in place at the time the accident occurred. Issue: Should \"no proof of liability insurance\" be an out-of-service violation?

The Federal Motor Carrier Safety Administration has significantly increased the scrutiny of new entrant applicants. Additionally, the current economy has likely resulted in numerous insurance cancellations. Financial responsibility is a critical component in passenger carrier safety as there is generally some assumption the liability insurer plays a role in risk mitigation. The absence of insurance is a clear indication of a "problem". Obviously, when an accident occurs and there is no financial responsibility in place, the public loses a critical financial resource to pay medical claims and income replacement.

UMA respectfully requests the CVSA Passenger Carrier Committee research, discuss and determine the appropriateness of placing a passenger carrier out-of-service should no proof of financial responsibility be evident.