(b) Motor common carriers; cargo liability. Security required to compensate shippers or consignees for loss of or damage to property belonging to shippers or consignees and coming into the possession of motor common carriers in connection with their transportation service, (1) for loss of or damage to property carried on any one motor vehicle$1,000; (2) for loss of or damage to or aggregate of losses or damages of or to property occurring at any one time and place-$2,000.

§ 174.3 Combination vehicles. The following combinations will be regarded as one motor vehicle for purposes of this part, (a) a tractor and trailer or semitrailer when the tractor is engaged solely in drawing the trailer or semi-trailer, and (b) a truck and trailer when both together bear a single load.

§ 174.4 Brokers. No person shall engage in the business of a broker as defined in Part II, Interstate Commerce Act, and no brokerage license shall be issued to any such person nor remain in force unless and until such person shall have furnished a bond or other security approved by the Commission, in an amount of not less than $5,000, and in such form as will insure the financial responsibility of such broker and the

supplying of authorized transportation in accordance with the contracts, agreements, or arrangements therefor.

§ 174.5 Qualifications—(a) As a selfinsurer. The Commission will give consideration to and will approve the application of a motor carrier to qualify as a self-insurer if such carrier furnishes a true and accurate statement of its financial condition and other evidence which will establish to the satisfaction of the Commission the ability of such motor carrier to satisfy its obligations for bodily injury liability, property damage liability, or cargo liability without affecting the stability or permanency of the business of such motor carrier.

(b) Other securities or agreements. The Commission will also consider applications for approval of other securities or agreements and will approve any such applications if satisfied that the security or agreement offered will afford the security for the protection of the public contemplated by sections 211 (c) and 215 of Part II, Interstate Commerce Act.

§ 174.6 Bonds and insurance policies. Each certificate or policy of insurance or surety bond filed with the Commission for approval must be for not less than the full limits of liability required under this part: Provided, however, That only corporations may qualify to act as surety. In each case in which the surety on any such bond is a surety company, such company must be one approved by the United States Treasury Department under the laws of the United States and the applicable rules and regulations governing bonding companies.

§ 174.7 Forms and procedure-(a) Forms of endorsements and cancellation notices. Endorsements for policies of insurance, surety bonds, certificates of insurance and applications to qualify as a self-insurer, or for approval of other securities or agreements, and notices of cancellation all must be in the forms prescribed and approved by the Commission.

(b) Filing of certificates of insurance and cancellation notices. Certificates of insurance, surety bonds, and notices of cancellation must be filed with the Commission in triplicate. Upon receipt and approval by the Commission one copy will be stamped "received and approved" and returned to the home office of the insurance or surety company.

(c) Name of insured. Insurance policies and surety bonds shall be written in

the full and correct name of the individual, partnership, corporation, or other person to whom the certificate, permit, or license is or is to be issued. In case of a partnership all partners shall be named.

(d) Cancellation notice. Surety bonds, policies of insurance, endorsements, or certificates of insurance and other securities and agreements shall not be canceled or withdrawn until after 30 days' notice in writing by the insurance company, surety or sureties, motor carrier, broker, or other party thereto, as the case may be, has first been given to the Commission at its office in Washington, D. C., which period of 30 days shall commence to run from the date such notice is actually received at the office of the Commission.

(e) Motor carriers and brokers; compliance with Part II, Interstate Commerce Act and this part. Motor carriers and brokers subject to the jurisdiction of this Commission are hereby required to maintain in effect at all times the security for the protection of the public contemplated in sections 211 (c) and 215, of Part II, Interstate Commerce Act, and prescribed by these sections.

§ 174.8 Insurance companies; authorized (a) State authority. No policy of insurance (or certificate of insurance in lieu thereof) will be approved by the Commission under this part unless written or issued by an insurance company legally authorized to issue such a policy in each state in which the insured motor carrier is authorized to operate under Part II of the Interstate Commerce Act, and such insurance company fully complies with paragraph (b) of this section: Provided, however, That the Commission will approve certificates of insurance from two or more insurance companies, or a certificate of insurance and a surety bond as provided for in § 174.6, in lieu of a certificate of insurance from one company if such certificates, or certificate and surety bond, each provide the prescribed coverage for separate states and collectively provide all the coverage prescribed in this part.

(b) Financial resources. Each insurance company must possess the minimum financial resources applicable to it as provided in this paragraph, which minimum will be determined on the basis of the values of assets and liabilities as shown in its financial statements filed with and approved by the insurance de

partment or other insurance regulatory authority of the state of domicile (home state) of such company, except in instances where, in the judgment of the Commission, additional evidence with respect to such values is considered necessary:

(1) Stock corporations must have and maintain minimum policyholders' surplus funds of $200,000, of which paid-in capital shall be not less than $150,000.

(2) Non-stock corporations and other non-stock organizations or associations issuing nonassessable policies of insurance must have and maintain surplus funds (policyholders' surplus) in excess of all liabilities of not less than $200,000.

(3) Non-stock corporations and other non-stock organizations or associations, issuing policies of insurance on an assessable basis only, must have and maintain surplus funds (policyholders' surplus) in excess of all liabilities of not less than $150,000. ⚫

(c) Effective date. This section shall be effective (1) on April 25, 1944, as to insurance companies which are not now qualified to file certificates of insurance with the Commission, and (2) on June 24, 1944, as to companies which are now qualified to file certificates of insurance with this Commission, except that if any affected company which is now qualified to file certificates of insurance with this Commission shall on or before June 24, 1944, give assurances to this Commission, in writing, of its willingness, apparent ability, and intent, promptly to rearrange its financial affairs so as to qualify, then as to such company, the amended section shall not be effective until October 23, 1944.

§ 174.9 Refusal to accept, or revocation by Commission, of surety bond, etc. The Commission may, at any time, refuse to accept or may revoke its approval of any surety bond, policy of insurance (or certificate of insurance in lieu thereof), qualifications as a self-insurer, or other securities or agreements if, in its judgment, such security does not comply with this part or, for any reason, fails to provide satisfactory or adequate protection for the public.

notices of cancellation, rescinders of notices of cancellation, and notices reinstating policies of insurance and surety bonds, issued in connection therewith and filed by or on behalf of motor carriers under these sections, and the endorsements prescribed in this section attached to any such policy of insurance, shall be construed to include not only the motor carrier named in the policy, certificate, bond, endorsement, rescinder or notice, but also (upon compliance with the conditions as to notice hereinafter stated in paragraph (b) of this section) the fiduciary of such motor carrier as defined in § 179.3 of this chapter.

(b) Coverage of successors. The coverage of fiduciaries as provided in this section shall attach at the moment of succession if written notice of the succession be given to each insurer or surety of such motor carrier within 30 days from the date upon which such fiduciary shall have succeeded to the operating rights of such motor carrier. It shall be the duty of such fiduciary to give the notice above described but such notice shall be fully effective if it be given by the Interstate Commerce Commission or by any person having an interest in the coverage of such fiduciary.

(c) Insurance coverage in behalf of fiduciaries to apply concurrently. The coverage furnished under the provisions of this section on behalf of fiduciaries shall not apply subsequent to the effective date of other insurance, or other security, filed with and approved by the Commission in behalf of such fiduciaries. After the coverage provided in this section shall have been in effect 30 days, it may be canceled or withdrawn within the succeeding period of 30 days by the insurer, the insured, the surety, or the principal upon 10 days' notice in writing to the Commission at its office in Washington 25, D. C., which period of 10 days shall commence ot run from the date such notice is actually received by the Commission. After such coverage has been in effect for a total of 60 days, it may be canceled or withdrawn only in accordance with § 174.7.

(d) Effective date. This section shall become effective on September 1, 1941, and shall apply to all policies of insurance (or certificates of insurance in lieu thereof), surety bonds, notices of cancelation, rescinders of notices of cancelation, and notices reinstating policies

of insurance and surety bonds issued in connection therewith, then on file or which may thereafter be filed with the Commission under this part.

Part 175-Corporate Reorganizations of Motor Carriers

§ 175.1 Information required to be filed with the Secretary of the Commission. Concurrently with the filing of any plan of corporate reorganization, amendment thereto, or modification thereof, of a motor carrier in proceedings under the Bankruptcy Act, as amended, in a District Court of the United States required to be submitted to the Interstate Commerce Commission under the provisions of said Bankruptcy Act, as amended, there shall be filed with the Secretary, Interstate Commerce Commission, Washington 25, D. C.;

(a) Seven copies of such plan of reorganization, of which one copy shall be certified.

(b) Verified original and 6 copies of statement containing the following information unless such information is contained in the plan of reorganization:

(1) Number assigned to debtor's certificate or permit under Part II of the Interstate Commerce Act or to application therefor.

(2) Date of filing of petition for reorganization.

(3) Date of approval of petition for reorganization.

(4) If petition approved prior to June 22, 1938, whether court has deemed application of provisions of Chapter X, Bankruptcy Act, as amended, practicable. If order entered, one certified copy and 6 conformed copies thereof should be furnished.

(5) If a transfer or lease of debtor's rights to operate as a motor carrier in interstate or foreign commerce, or transfer of control of debtor through stock ownership is contemplated under plan of reorganization-if known, name and address of prospective transferee, status of such transferee, including affiliation with other carriers subject to Interstate Commerce Act, and, separately for debtor, prospective transferee and affiliates of latter, if any, number of motor vehicles owned, leased, controlled or operated.

(c) Verified original and 6 copies of: (1) Balance sheet statement of debtor as of latest available date.

(2) Income statement of debtor covering each of the last 2 calendar years, and the current calendar year to the end of the latest month during which operations have been conducted.

(3) If under the plan of reorganization there is contemplated issuance of securities or assumption of obligation or liability as lessor, lessee, guarantor, endorser, surety, or otherwise, in respect of the securities of any other person by debtor or prospective transferee

(i) Statement showing securities of such person outstanding, securities to be issued, and obligations or liabilities to be assumed, segregated by classes and amounts (par value of securities, or if such have no par value, the fair market value thereof as of date of issue), and

(ii) If not furnished under subparagraph (1) of this paragraph, balance sheet statement as of latest available Idate of such person proposing to issue securities, or assume obligation or liability.

(d) Notice of time and place of any hearing on the proposed plan of reor-ganization.

(49 Stat. 546, as amended; 49 U. S. C. 304. Interprets or applies 49 Stat. 551, as amended, 552, as amended, 555, as amended, 557, as amended; 49 U. S. C. 306, 309, 312, 314) F. R. 4039]

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AUTHORITY: §§ 176.1 to 176.11 issued under 49 Stat. 546, as amended; 49 U. S. C. 304. Interpret or apply 49 Stat. 558, as amended, as amended, 560, as amended; 49 U. S. C. 316, 317.

SOURCE: §§ 176.1 to 176.11 appear at 4 F. R. 3403, 3651, except as noted following sections affected.

§ 176.1 Definitions. As used in the rules in this part:

(a) Household goods. The term "household goods" means personal effects and property used or to be used in a dwelling when a part of the equipment or supply of such dwelling; furniture, fixtures, equipment and the property of stores, offices, museums, institutions, hospitals, or other establishments when a part of the stock, equipment, or supply of such stores, offices, museums, institutions, hospitals, or other establishments; and articles, including objects of art, displays, and exhibits, which because of their unusual nature or value require specialized handling and equipment usually employed in moving household goods.

(b) Other terms. Where any other terms used in the rules in this part are defined in section 203 (a) of Part II of the Interstate Commerce Act, such definitions shall be controlling. Where terms are used in the rules in this part which are neither defined herein nor in said section 203 (a), they shall have the ordinary practical meaning of such terms.

§ 176.2 Establishment of rates stated in amounts per hundred pounds and not upon any other basis; cancellation of rates otherwise established. All common carriers by motor vehicle engaged in the transportation of household goods in interstate or foreign commerce shall establish, in the manner and form required by section 217 of Part II of the Interstate Commerce Act, and by the regulations of the Commission issued pursuant thereto, rates for the transportation of household goods in interstate or foreign commerce stated in amounts per hundred pounds, and shall not establish rates upon any other basis. All rates applicable to the transportation of household goods established upon any other basis than in amounts per hundred pounds shall be canceled and superseded by rates published in accordance with this section.

§ 176.3 Determination of tare and net weights; part loads. Each such common carrier shall determine the tare weight

of each vehicle used in the transportation of household goods by having it weighed prior to the transportation of each shipment, without the crew thereon, by a certified weighmaster or on a certified scale, and when so weighed the gasoline tank on each such vehicle shall be full and the vehicle shall contain all blankets, pads, chains, dollies, hand trucks, and other equipment needed in the transportation of such shipment. Each carrier shall retain in the vehicle, subject to inspection, a weighmaster's certificate or weight ticket as to each such vehicle showing the tare weight, the date weighed, and a list of such equipment.

After the vehicle has been loaded it shall be weighed, without the crew thereon, prior to delivery of the shipment and the net weight shall be determined by deducting the tare weight from the loaded weight, except that in instances where no adequate scale is located at origin or at any point within a radius of 10 miles thereof, a constructive weight, based on 7 pounds per cubic foot of properly loaded van space, may be used. The gross weight, tare weight, and net weight, or the constructive weight, shall be shown on the freight bill.

In the transportation of part loads this section shall apply in all respects, except that the gross weight of a vehicle containing one or more part loads may be used as the tare weight of such vehicle as to part loads subsequently loaded thereon, and a part load for any one shipper, not exceeding 1,000 pounds, may be weighed on a certified scale prior to being loaded on a vehicle, such part load to be accompanied by a weight ticket evidencing such weighing.

§ 176.4 Accessorial or terminal services; tariffs providing therefor; packing and uncrating charges. (a) Such common carriers shall establish in the manner prescribed in section 217 of Part II of the Interstate Commerce Act, and the rules and regulations issued pursuant thereto, the charges to be made for each accessorial or terminal service rendered in connection with the transportation of household goods by motor vehicle. The tariffs establishing such charges shall separately state each service to be rendered and the charge therefor. The charges so established for packing and unpacking shall be in amounts per container and those for other services shall be separately stated on a unit or hourly

basis, whichever is appropriate. No charge so established shall be lower than the cost of performing the service. This section shall apply only where the linehaul transportation is performed by a motor carrier. The rate for transportation of such goods shall not include the charge for any accessorial service and no such services other than those for which separate charges have been so established shall be rendered by any such carrier.

(b) The tariffs specified in §§ 176.1176.8, shall be filed and published to become effective on or before October 23, 1939, upon statutory notice.

[4 F. R. 3403, as amended by Ex Parte No. MC-19, I. C. C., 12 F. R. 315]

§ 176.5 Discounts prohibited; rates based on prepayment charges prohibited. No discounts of any character whatsoever shall be authorized by tariff provisions or otherwise allowed by any such common carrier and no rates or charges shall be established based upon prepayment of charges.

§ 176.6 Prohibition against carrier acting as agent for another carrier. No such common carrier shall act as agent for any other such common carrier in the solicitation of shipments of household goods, in interstate or foreign commerce, between points which such agent is authorized to serve and for which it shall have established different rates than those of its principal.

§ 176.7 Acting as agent for compensation for insurance company prohibited. No such common carrier nor any employee, agent, or representative of a carrier shall act as an agent for an insurance company in insuring, under any type of policy, shipments of household goods to be transported by such carrier in interstate or foreign commerce if such carrier, its employee, agent, or representative receives compensation from such insurance company.

§ 176.8 Issuance of receipt or bill of lading for transportation prior to receiving household goods prohibited. No such common carrier shall issue a receipt or bill of lading for household goods to be transported in interstate or foreign commerce prior to receiving such household goods for such transportation, but must issue such receipt or bill of lading when such household goods have been received.