Georgia intrastate motor carrier insurance filings

Motor carriers and certificates under O.C.G.A. 40-1-100

O.C.G.A. 40-1-100 and Section 40-1-112 both appear in Part 2, headed "Certification of Motor Carriers" in the official code hierarchy, which spans Sections 40-1-100 through 40-1-130 of Title 40. The definitions that decide whether a trucking company and its truck drivers need an insurance filing under Section 40-1-112(a) are in Section 40-1-100. Section 40-1-100(1) defines a carrier as a person who undertakes the transporting of goods or passengers for compensation, and Section 40-1-100(3) defines the commissioner as the commissioner of public safety. Section 40-1-100(8) defines for compensation or for hire as "an activity relating to a person engaged in the transportation of goods or passengers for compensation," which describes a trucking company whose truck drivers haul freight for paying customers.^[3][1]

Subject to the exclusions in Section 40-1-100(12)(B), Section 40-1-100(12)(A) defines "Motor carrier" to take in a person owning, controlling, operating or managing a motor vehicle used in the business of transporting persons or property for hire, including household goods, or engaged in nonconsensual towing for hire, over a public highway in Georgia. The definition also includes such a person's lessees, along with receivers or trustees and receivers appointed by a court. A trucking company whose truck drivers operate such a vehicle on a Georgia public highway falls within the words "used in the business of transporting for hire" unless a Section 40-1-100(12)(B) exclusion removes the vehicle. Section 40-1-100(16) defines a public highway as a public street, road, highway or thoroughfare in Georgia.^[3]

Section 40-1-100(17) treats a vehicle, machine, tractor, trailer or semitrailer as a vehicle or motor vehicle when "propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property," as determined by the commissioner. The tractor or semitrailer a truck driver operates is measured by those conditions. Section 40-1-100(11) defines household goods as personal effects and property used or to be used in a dwelling as part of its equipment or supplies, "and such other similar property as the commissioner may provide for by regulation." Under that paragraph, truck drivers moving property from a factory or store carry household goods only when "such property has been purchased by a householder with the intent to use such property in a dwelling" and is transported at the householder's request with charges paid by the householder.^[3]

Section 40-1-100(2) defines a certificate, or "motor carrier certificate," as a certificate of public convenience and necessity issued under Part 2, under the 1929 and 1931 acts it names, or under prior law. Section 40-1-100(14) defines a permit as a written or electronic authorization issued by the department "to motor carriers of passengers and nonconsensual towing companies" for providing services under its rules and guidelines. Section 40-1-100(15) defines a person to include an individual, such as a truck driver, as well as a partnership, trust, corporation or other entity.^[3]

Section 40-1-100(4) provides that a company "shall include a corporation, a firm, a partnership, an association, or an individual," so a truck driver operating alone as an individual can be a company under that paragraph.^[3]

Rule 570-38-1-.02(1) gives terms defined in Section 40-1-100 the same definition in Chapter 570-38-1 and, except to the extent prohibited by law, resolves a conflict between definitions by relying first on the code section it lists ahead of Section 40-1-100, then on Section 40-1-100, then on paragraph (2) of the rule, and finally on another rule in the chapter. Under Rule 570-38-1-.02(2), a certificate means "a certificate, permit, license, or other authority to operate as a carrier issued by the Georgia Department of Public Safety in accordance with this Chapter, whether interim or permanent," and the department means the Georgia Department of Public Safety. Rule 570-38-1-.02(2)(c) defines an interim certificate as a certificate issued by the department for a temporary period prior to the issuance of a permanent certificate, and Rule 570-38-1-.02(2)(d) defines the section as the department's Regulatory Compliance Section.^[2][3]

Vehicles excluded from the motor carrier definition in O.C.G.A. 40-1-100(12)(B)

Section 40-1-100(12)(B) provides that, "Except as otherwise provided in this subparagraph," the Section 40-1-100(12) definition leaves out the vehicles it lists, so a vehicle that truck drivers operate for hire is excluded only if it matches one of these descriptions. Motor vehicles engaged solely in transporting school children and teachers to and from public schools and private schools are excluded. Taxicabs operating within the corporate limits of municipalities and regulated by those municipalities' governing authorities are excluded, although vehicles and drivers operating within the corporate limits of a city remain subject to the safety regulations the commissioner of public safety adopts under Section 40-1-8. The list also names "Limousine carriers as provided for in Part 3 of this article" and excludes hotel passenger or baggage motor vehicles used exclusively for patrons and employees of the hotel.^[3]

Under Section 40-1-100(12)(B)(v), motor vehicles operated not for profit with a capacity of 15 persons or less are excluded when used exclusively to transport elderly or disabled passengers or employees under a corporate sponsored vanpool program. A vehicle owned by the driver may still be operated for profit to and from the driver's place of work, provided each such vehicle carrying more than nine passengers maintains "liability insurance in an amount of not less than $100,000.00 per person and $300,000.00 per accident and $50,000.00 for property damage". Section 40-1-100(5) defines a corporate sponsored vanpool as an employer rideshare program in which the employer pays all or some of the costs of transporting its employees to a single work reporting location, using vehicles with a manufacturer's gross vehicle weight rating of not more than 10,000 pounds that are designed to carry not more than 15 passengers including the driver. Section 40-1-100(6) defines an elderly or disabled passenger as an individual over the age of 60 years, or one unable by reason of illness, injury, age, congenital malfunction or other incapacity or disability to utilize mass transportation facilities as effectively as an individual not so affected.^[3]

Section 40-1-100(12)(B)(vi) excludes motor vehicles owned and operated exclusively by the United States government or by Georgia or a subdivision of the state. Section 40-1-100(12)(B)(vii) excludes government or private vehicles, operated for profit or not, capable of transporting not more than ten persons for hire when used exclusively to transport elderly or disabled passengers to or from medical care or prescription medication. Section 40-1-100(12)(B)(viii) excludes ambulances.^[3]

Certificate of insurance and self-insurance under O.C.G.A. 40-1-112(a) and (b)

Section 40-1-112(a) describes what the policy evidenced by the filing protects. In the case of passenger vehicles, the policy protects passengers and the public "against injury proximately caused by the negligence of such motor carrier, its servants, or its agents." In the case of vehicles transporting household goods, the policy serves "to secure the owner or person entitled to recover against loss or damage to such household goods for which the motor common carrier may be legally liable."^[1]

Under Section 40-1-112(a), the commissioner prescribes the forms for the certificate, and the policy comes from an insurance company licensed to do business in Georgia. For a trucking company whose truck drivers haul household goods or property for hire, the insurer files that certificate with the department. The department determines and fixes the amounts of the indemnity insurance and prescribes its provisions and limitations, so Section 40-1-112 leaves the dollar amounts of these policies to the department rather than stating figures in the statute itself.^[1]

Section 40-1-112(b) gives the department "power to permit self-insurance, in lieu of a policy of indemnity insurance, whenever in its opinion the financial ability of the motor carrier so warrants." When the department's opinion of a trucking company's financial ability supports it, approved self-insurance takes the place of the policy of indemnity insurance that Section 40-1-112(a) otherwise calls for.^[1]

Department of Public Safety rules on carrier certificates

Rule 570-38-1-.01(1) extends Chapter 570-38-1 to matters that are, or on the date of formal adoption of the rules were, within the jurisdiction or regulatory authority of the department's Regulatory Compliance Section, and "to all carriers subject to the jurisdiction or regulatory authority of the Department." A trucking company with truck drivers in Georgia intrastate service comes under the chapter on that basis only when it is subject to that jurisdiction or authority. Under Rule 570-38-1-.01(2), in a conflict between rules in the chapter, "the more specific rule or rules pertaining to a particular topic shall control."^[2]

Rule 570-38-1-.03(3) provides that certificates issued before the chapter's effective date for operation as a "household goods carrier, passenger carrier, limousine carrier, transportation network company, taxi service, or nonconsensual towing provider" continue to be valid if unexpired and otherwise valid as of that date, and their holders comply with the chapter to the extent it is applicable. When such a certificate becomes invalid or expires, or when it requires an update, its holder, including a household goods trucking company whose truck drivers operate under it, is required to obtain a replacement or new certificate in accordance with the chapter.^[2]

Under Rule 570-38-1-.03(1), to the extent permitted by law, the department may suspend or modify application of a rule in individual instances where strict compliance "would result in unreasonable, uneconomical or unintended results or otherwise frustrate the intent of these Rules." Rule 570-38-1-.03(2) then calls on the department to make every effort to "timely repeal, amend, or modify these Rules in accordance with the Administrative Procedure Act" to account for the circumstances requiring the suspension or modification.^[2]

Rule 570-38-1-.05(1), except as modified by that rule or under other department authority, makes the federal safety regulations in Parts 350, 376, 382, 383 and 390 through 397 of Title 49 of the Code of Federal Regulations department rules "for all carriers regulated by this Department." A trucking company whose truck drivers work in Georgia intrastate commerce is held to those adopted rules only if the department regulates it. Rule 570-38-1-.05(5) provides that references to interstate commerce in those rules "shall be interpreted for the purposes of this Chapter to mean" intrastate commerce in Georgia, and it states the department's intent that the chapter's rules apply only to intrastate trucking companies and operations.^[2]

Section 40-1-8(b) authorizes the commissioner, whom Section 40-1-8(a)(1) and Section 40-1-100(3) each define as the commissioner of public safety, to promulgate rules for "the safe operation of motor carriers, the safe operation of commercial motor vehicles and drivers, and the safe transportation of hazardous materials." Under Section 40-1-8(b)(2), those rules include a requirement that a truck driver employed to operate a motor vehicle for a trucking company be at least 18 years of age to operate intrastate. For interstate operation, the same paragraph calls for a truck driver to be at least 21 years of age. It also calls for that truck driver to meet the qualification requirements the commissioner promulgates, to be of temperate habits and good moral character, to possess a valid driver's license, and not to use or possess prohibited drugs or alcohol while on duty. Each truck driver within Section 40-1-8(b)(2) is also to be "fully competent and sufficiently rested to operate the motor vehicle under his or her charge."^[5][3]

Under Section 40-1-8(b)(3), the rules of the commissioner defined in Section 40-1-100(3) provide that accidents arising from or in connection with the operation of commercial motor vehicles are reported to the commissioner of transportation as that official requires, so a truck accident is reported under that paragraph only when it meets that condition. Section 40-1-8(g) bars a person from driving or operating, or causing the operation of, a vehicle in violation of an out-of-service order, defined there as "a temporary prohibition against operating as a motor carrier or driving or moving a vehicle" or related cargo. Under that subsection, a truck driver may not drive a vehicle in violation of such an order. A trucking company likewise may not cause the operation of a vehicle subject to such an order, including through its own truck drivers. Under Section 40-1-8(f)(1), the commissioner may designate department members to perform regulatory compliance inspections, and may designate county, municipal, campus and other state agency members to perform them only on vehicles and drivers in operation and on cargo in operation, such as a truck driver in operation. Those agency members may enforce rules under Section 40-1-8 or Article 2 only subject to a valid agreement with the commissioner, and under Section 40-1-8(f)(2) they may not perform regulatory compliance inspections unless designated and authorized by the commissioner.^[5][3]

Penalties, suspension and notice under O.C.G.A. 40-1-56 and Rules 570-38-1-.09 and .10

Rule 570-38-1-.09 makes failure by a trucking company subject to the department's jurisdiction or regulatory authority "to comply with the applicable statutes, this Chapter, any applicable tariff, and any applicable order of the Department" cause for adverse action, to the extent authorized by law, including civil or criminal penalties and suspension or revocation of certificates. Under the same rule, "Except to the extent otherwise authorized by law and provided for in this Chapter, adverse action shall only take effect after notice and an opportunity for a hearing."^[2]

Under O.C.G.A. 40-1-56(a), a trucking company or limousine company subject to Part 2 or Part 3 of Article 3 that fails to register with the department, or that is subject to its jurisdiction and willfully violates a law it administers or a regulation issued under it, is liable for a penalty not to exceed $15,000.00. The same subsection reaches a company that "fails, neglects, or refuses to comply with any order after notice thereof," and it adds a penalty not to exceed $10,000.00 for each day during which the violation continues. Under Section 40-1-56(c), notice of the violation and the assessed amount is made by personal service upon the violator, as Rule 570-38-1-.10(2) also requires for civil penalty notices, with a warning that a vehicle related to the violation, such as one driven by the trucking company's truck drivers, may be subject to suspension of the registration pursuant to Code Section 40-1-56.1. The respondent then has 60 days to pay the assessed penalty or file with the department a written request for administrative review.^[4][2]

Under Section 40-1-56(b), following a reasonable attempt to notify a certificate holder, the commissioner is authorized to immediately suspend a certificate or permit if the commissioner finds the suspension necessary to protect against "an immediate threat to the life, health, or safety of others." The holder may appeal that emergency suspension by filing a request for administrative review with the department within 30 days of receipt of notice of the department's decision.^[4]

Unless otherwise provided by law, Section 40-1-8(h)(1) and (h)(2) require a trucking company or a truck driver operating a commercial motor vehicle to comply with the 49 C.F.R. Part 391 and Part 392 standards in present regulations, which Section 40-1-8(a)(3) defines as "the regulations promulgated under 49 C.F.R. in force and effect on January 1, 2026." Subject to the same proviso, Section 40-1-8(h)(3) holds a truck driver in that position to the hours of service and record of duty status requirements of 49 C.F.R. Part 395. Under Section 40-1-8(i), a truck driver failing to comply with Section 40-1-8(h)(2), which includes the seatbelt usage requirements in 49 C.F.R. Section 392.16, "shall be guilty of the misdemeanor offense of failure to wear a seat safety belt while operating a commercial motor vehicle" and may be fined not more than $50.00 without imprisonment. Section 40-1-8(j) makes a violation of Section 40-1-8, or of a rule or order adopted under it, a misdemeanor, whether committed by a truck driver or by a corporate officer or employee. The commissioner who adopts those rules is the commissioner of public safety defined in Section 40-1-100(3).^[5][3]

Under Rule 570-38-1-.10(1), except as otherwise required by law or provided in the chapter, notice to an applicant or trucking company goes by certified mail to the most recent address it gave the department or, for a non-resident trucking company, to its designated agent or agents. Under Rule 570-38-1-.10(3), except as otherwise required by law, formal notice may be waived by acknowledging receipt by other means or by a written request for notice by "first-class mail, fax, or e-mail." Under Rule 570-38-1-.10(4), notice takes effect on the earliest applicable date, such as "the date upon which personal service is made," the earlier of delivery or three days after notice is sent by certified mail, the date the party acknowledges receipt by other means, or, after a written request for another method, three days after sending by first-class mail and the sending date for e-mail or fax.^[2]

Missing filings, joinder of the insurer and amendment notes

Section 40-1-112(a) states that "The failure to file any form required by the department shall not diminish the rights of any person to pursue an action directly against a motor carrier's insurer," which takes in a person whose claim arises from a truck crash.^[1]

Under Section 40-1-112(c)(1), a person with a cause of action arising under Part 2, in tort or contract, may join the trucking company and its insurer in the same action only when one or more related trucking companies are insolvent or bankrupt, or when personal service under subsection (e) of Code Section 9-11-4 cannot after reasonable diligence be effected against the truck driver of the vehicle giving rise to the cause of action or against the trucking company. For a cause of action arising under Part 2 from a truck accident and accruing on or after July 1, 2024, the insurer is joined only when the insolvency or bankruptcy condition or the personal service condition of Section 40-1-112(c)(1) is met. Under that paragraph, a failed attempt at personal service on a truck driver counts only when it is directed at the driver of the vehicle giving rise to the cause of action and only after reasonable diligence.^[1]

When a related trucking company is insolvent or bankrupt, or personal service on the truck driver or the trucking company cannot be effected after reasonable diligence, Section 40-1-112(c)(2) provides that the "insurance carrier may be joined in the action as a matter of right, without motion or order of the court" by filing an amended complaint. The same right of joinder arises when personal service cannot after reasonable diligence be effected against the trucking company itself rather than its truck driver. The amended complaint is served on the insurer under Code Section 9-11-4, and the insurer files an answer within 30 days of service. Under Section 40-1-112(c)(3), the amended complaint relates back to the date of filing of the original pleading. For purposes of Section 40-1-112(c)(2), that relation back runs to the date the original pleading in the truck crash action was filed.^[1]

The notes on the official code page for Section 40-1-112 state that subsection (c) was rewritten by an amendment effective July 1, 2024, which the editor's notes make applicable only to causes of action accruing on or after that date. According to the editor's notes on that page, an uncodified Act of the General Assembly makes subsection (c) applicable to causes of action accruing on or after July 1, 2024. For a claim arising from truck accidents, subsection (c) therefore reaches only causes of action accruing on or after July 1, 2024. Court decisions decide when a cause of action accrues, including one arising from a truck crash, and this entry does not cover those decisions. The amendment notes on the official O.C.G.A. 40-1-100 page about paragraphs (6) and (10) are not described in this entry, and neither are its notes about paragraph (12)(B)(v).^[1][3]

See also: Flanagan Law truck accident practice

See also

On related publications

• Georgia truck-crash law notes (truckaccidentlawyer.wiki)
• Liability and comparative fault in Georgia (caraccidentlawyers.wiki)