Property and Casualty Insurance Practice Exam

What does the MCS-90 Endorsement provide coverage for?

1. Property damages in a collision

2. Public liability coverage for trucking operations

3. Comprehensive coverage for all types of vehicles

4. Workers' compensation for truck drivers

The correct answer is: Public liability coverage for trucking operations

The MCS-90 Endorsement is specifically designed to provide public liability coverage for trucking operations, particularly for motor carriers transporting property in interstate commerce. This endorsement is required by federal regulations and is used to ensure that there is a minimum level of financial responsibility for bodily injury and property damage resulting from accidents involving commercial vehicles. The MCS-90 operates as an endorsement to a commercial auto policy, ensuring that the commercial carrier has adequate coverage to protect third parties who may be affected by the insured's trucking operations. It emphasizes the importance of holding motor carriers accountable for damages that occur while they are engaged in interstate commerce, providing protection to the public in case of accidents. Other options presented do not accurately reflect the purpose of the MCS-90. For example, property damages in a collision and comprehensive coverage pertain more to the coverage within the vehicle's own policy rather than the regulatory framework addressing liability. Additionally, workers' compensation pertains to employee protection rather than public liability, which is the central focus of the MCS-90.