AB 546

This bill specifies the minimum liability insurance policy limit applicable to

motor carriers of passengers operating solely in intrastate commerce.

Current law requires proof of motor vehicle liability insurance as a prerequisite

to obtaining a motor carrier operating permit. The minimum policy limit required

for this insurance is generally an amount specified under federal law (currently

between $300,000 and $5,000,000). Current law, however, specifies different

minimum policy limit amounts for two carrier types: 1) for a vehicle with a gross

weight of not more than 10,000 pounds that is not transporting hazardous materials,

$300,000; and 2) for taxicabs operating as motor carriers, either the amount required

by the local taxicab regulating ordinance or $50,000 for bodily injury and $10,000 for

property damage, whichever is greater.

This bill specifies that for motor carriers of passengers that operate solely in

intrastate commerce, the minimum policy limit is the following:

1. For a motor vehicle with a passenger-carrying capacity of 15 or fewer

passengers, $500,000.

2. For a motor vehicle with a passenger-carrying capacity of 16 or more

passengers, $1,000,000.