Question
We are a small trucking company that has been running with 4 owner/ops for a little over a year now. We have had everyone listed on their own insurance policy due to an OWI on my husband's record. We informed our agent a couple week's ago that my husband planned to go back to working for a different company because he made it past his suspension time and that we want to put everyone on the same policy as it should be. We pay approximately $1000/month for his insurance right now and want to cancel it this week. He said we have to pay for 35 more days because the FMSCA requires that time for the MCS-90 to be canceled. I can't understand why we can't just inform them that we are replacing it with another insurance policy. Everyone has been paying their premiums so why should he have to pay for it when he's not even working under our authority? The owner/operators all have us listed as an additional insured on their policies and we would be changing they're policies to be in our name so there would not be any lapse in coverage. Is my agent correct in what he's telling me, or is there a way to make this change without having to spend the extra $$ for nothing. Any input would be greatly appreciated.
Answer
The filings required by the federal and state agencies, specifically call for a 35 day notice of cancellation. When the policy was purchased and the filings requested, the filings complied with the requirement to provide the 35 day notice of cancellation. The reason for cancellation is irrelevant. The time must be provided as agreed by the terms of the filing.
You insurance agent has informed you correctly.
Answer
Thanks for the help Connie. It wasn't exactly the answer I was hoping for, but I'm glad that my agent is being honest with me. He always has been in the past, but when dealing with that kind of money I wanted to be sure there wasn't any way around it. Thanks again!