Administrative Rules of the State of Montana

(1) All insurance policies issued by the insurance company to the carrier must include, at time of issuance, the terms, conditions and requirements set forth in this rule and repeated on endorsement forms approved by the commission and identified as "Endorsement MV4" and "Endorsement MV2" available from the office of the commission.

(2) The following terms, conditions and requirements are hereby deemed a substantive part of all policies issued, and are hereby incorporated therein:

(a) Cargo insurance (Endorsement MV2) shall be issued in an amount no less than:

(i) $1,000 for cargo transported in a vehicle designed, equipped, and primarily intended for transportation of 7 passengers or less or a vehicle of manufacturers GVW rating of 10,000 pounds or less designed, equipped, and primarily intended for transportation of cargo;

(ii) $10,000 for all other vehicles.

(b) Casualty (liability) insurance (Endorsement MV4) shall be issued in an amount no less than:

(i) $100,000 for 7 passengers or less;

(ii) $500,000 for 8 to 15 passengers;

(iii) $750,000 for 16 to 30 passengers;

(iv) $5,000,000 for 31 passengers or more;

(v) except any motor carrier, other than as provided in (b) (i) above, operating under a certificate of public convenience and necessity authorizing passenger operations only within a particular city or 10 mile radius thereof is required

to carry a minimum of $500,000 insurance regardless of size of

vehicle used;

(vi) $100,000 for transportation of nonhazardous freight in a vehicle designed, equipped and primarily intended for transportation of 7 passengers or less or a vehicle of manufacturer's GVW rating of 10,000 pounds or less designed, equipped, and primarily intended for transportation of cargo;

(vii) $500,000 for transportation of nonhazardous freight for all other vehicles;

(viii) the federal department of transportation minimum insurance limits for hazardous materials freight, as hazardous materials is defined by that department.

(3) These endorsements must be executed, countersigned and attached to the original policy when issued.

CASUALTY INSURANCE

Endorsement MV-4

The policy to which this endorsement is attached is written in pursuance of and is to be construed in accordance with the MOTOR CARRIER ACT, (TITLE 8, CHAPTER 1, RCM 1947, Sections 8-101 to 8-130) , and the rules and regulations of the Public Service Commission of the State of Montana adopted thereunder. The policy is to be filed with the state in accordance with said statutes and rules.

In consideration of the premium stated in the policy to which this endorsement is attached, the Company hereby agrees to pay any final judgment recovered against the insured for bodily injury to or the death of any person or loss of or damage to property of others (excluding injury to or death of the insured's employees while engaged in the course of their employment, and loss of or damage to property of the insured, and property transported by the insured, designated as cargo) , resulting from the negligent operation, maintenance, or use of motor vehicles under certificate of public convenience and necessity or permit issued to the insured by the Public Service Commission of the State of Montana, under the Motor Carrier Act (R.C.M. 1947, Sections 8-101 et seq.) , within the limits of liability hereinafter provided, regardless of whether such motor vehicles are specifically described in the policy or not. It is understood and agreed that upon failure of the Company to pay any such final judgment recovered against the insured, the judgment creditor may maintain an action in any court of competent jurisdiction against the Company to compel such payment. The bankruptcy or insolvency of the insured shall not relieve the Company of any of its obligations hereunder. The liability of the Company extends to such losses, damages, injuries, or deaths whether incurring on the route or in the territory authorized to be served by the insured or elsewhere in the State of Montana.

The liability of the Company on each motor vehicle for the following limits shall be a continuing one notwithstanding any recovery hereunder:

SCHEDULE OF LIMITS

MOTOR CARRIERS - BODILY INJURY LIABILITY - PROPERTY DAMAGE LIABILITY

(1)

KIND OF EQUIPMENT

(2)

Limit for bodily injuries to or death of one person

(3)

Limit for bodily injuries to or death of all persons injured or killed in any one accident (subject to a maximum of $25,000 for bodily injuries to or death of one person)

(4)

Limit for loss or damage in any one accident to property of others (excluding cargo)

Passenger Equipment (Seating Capacity

Seven passengers or less

8 to 12 passengers, inclusive

13 to 20 passengers, inclusive

21 to 30 passengers, inclusive

30 passengers or more

Freight Equipment

All motor vehicles used in the transportation of property

$25,000

25,000

25,000

25,000

25,000

$25,000

$100,000

150,000

200,000

250,000

$100,000

$10,000

10,000

10,000

10,000

10,000

$10,000

Nothing contained in the policy or any other endorsement thereon, nor the violation of any of the provisions of the policy or of any endorsement thereon by the insured, shall relieve the Company from liability hereunder or from the payment of any such final judgment.

This endorsement may not be cancelled without cancellation of the policy to which it is attached. Such cancellation may be effected by the Company or the insured giving thirty (30) days' notice in writing to the Public Service Commission of the State of Montana at its offices at 1227 11th Avenue, Helena, Montana 59601, said thirty (30) days' notice to commence to run from the date notice is actually received at the office of said Commission.

            Attached to and forming a part of Policy No. ........................................................................................................................... issued by the

                                                                                                                                                                                                              Insurance Company to





(Date)                                            (Signature of agent or other officer) Inland Marine Insurance (Cargo)

INLAND MARINE INSURANCE (CARGO)

    ENDORSEMENT MV-2

           PROPERTY BEING TRANSPORTED

The policy to which this endorsement is attached is written in pursuance of and is to be construed in accordance with Chapter 310, Revised Codes of Montana, 1935, (Sections 3847.1-3847.28) , and the rules and regulations of the Public Service Commission of the State of Montana adopted thereunder. The policy is to be filed with the State in accordance with said statute.

In consideration of the premium stated in the policy to which this endorsement is attached, the Company hereby agrees to pay, within the limits of liability hereinafter provided, any shipper or consignee for all loss of or damage to all property belonging to such shipper or consignee, and coming into the possession of the Insured in connection with its transportation service, for which loss or damage the Insured may be held legally liable, regardless of whether the motor vehicles, terminals, warehouses, and other facilities used in connection with the transportation of the property hereby insured are specifically described in the policy or not. The liability of the Company extends to such losses or damages whether occurring on the route or in the territory authorized to be served by the Insured or elsewhere.

Within the limits of liability hereinafter provided it is further understood and agreed that no condition, provision, stipulation, or limitation contained in the policy, or any other endorsement thereon or violation thereof, or of this endorsement by the Insured, shall affect in any way the right of any shipper or consignee, or relieve the Company from liability for the payment of any claim for which the Insured may be held legally liable to compensate shippers or consignees, irrespective of the financial responsibility or lack thereof or insolvency or bankruptcy of the Insured. However, all terms, conditions and limitations in the policy to which this endorsement is attached are to remain in full force and effect as binding between the Insured and the Company. The Insured agrees to reimburse the Company for any payment made by the Company on account of any loss or damage involving a breach of the terms of the policy and for any payment that the Company would not have been obligated to make under the provisions of the policy, except for the agreement contained in this endorsement.

The liability of the Company for the limits provided in this endorsement shall be a continuing one notwithstanding any recovery hereunder. The Company shall not be liable for an amount in excess of $1,000, in respect of any loss of or damage to or aggregate of losses or damages of or to the property hereby insured occurring at any one time or place, nor in any event for an amount in excess of $1,000, in respect of the loss of or damage to such property carried on any one motor vehicle, whether or not such losses or damages occur while such property is on a motor vehicle or otherwise.

This endorsement may not be cancelled without cancellation of the policy to which it is attached. Such cancellation may be effected by the Company or the Insured giving thirty (30) days' notice in writing to the Public Service Commission at its office at 1227 11th Avenue, Helena, Montana 59601, said thirty (30) days' notice to commence to run from the date notice is actually received at the office of said Public Service Commission.

Attached to and forming a part of Policy No ........................issued by

the .......................... (herein called Company) of......................... ..........................................to......................................

Dated at ......................this day of ............................, 19...

              Countersigned by .................................................

              (Authorized Company Representative)

History: Sec. 69-12-201, MCA; IMP, Sec. 69-12-402, MCA; Eff. 12/31/72; AMD, 1990 MAR p. 1263, Eff. 9/1/90; EMERG, AMD, 1991 MAR p. 360, Eff. 3/29/91; AMD, 1997 MAR p. 1062, Eff. 6/24/97.