Insurance

(1) No motor carrier subject to the provisions of T.C.A. §§ 65-15-101 et seq., shall engage in transportation of passengers or property for compensation, and no certificate or permit shall be issued to a motor carrier, or shall remain in force, unless and until there shall have been filed with and approved by the Commissioner of Safety and Homeland Security for intrastate commerce or the United States Department of Transportation for interstate commerce a policy of insurance (or certificate of insurance in lieu thereof), or a surety bond in not less than the amounts hereinafter prescribed, conditioned to pay, within the amount of such policy RULES AND REGULATIONS AS TO SUPERVISION AND CONTROL CHAPTER 1340-06-01 OF MOTOR VEHICLES AND MOTOR BUSES of insurance (or certificate of insurance in lieu thereof), or surety bond, any final judgment recovered against such motor carrier for bodily injuries to or the death of any person resulting from the negligent operation, for loss or damage to property of others; nor shall any common carrier by motor vehicle subject to the provisions of said Act engage in the transportation of property for compensation, nor shall any certificate be issued to such carrier, nor remain in force, unless and until there shall have been filed with and approved by the Commissioner of Safety and Homeland Security a policy of insurance written on a continuous basis, (or certificate of insurance in lieu thereof) or a surety bond in not less than the amounts hereinafter prescribed, conditioned upon such carrier making compensation to shippers or consignees for all property belonging to shippers or consignees and coming into the possession of such carrier in connection with its transportation service. Thirty (30) days notice of cancellation of any insurance policy must be given to the Commissioner of Safety and Homeland Security in writing. (2) No person shall operate a motor vehicle transporting hazardous materials, hazardous substances, and/or hazardous wastes as defined in 49 C.F.R. § 171.8, unless and until there shall have been filed with and approved by the Commissioner of Safety and Homeland Security evidence of a bodily injury and property damage endorsement or surety bond meeting the minimum limits hereinafter prescribed in Rule 1340-06-01-.07. (3) In the interest of public convenience, it is the opinion of the Commissioner of Safety and Homeland Security that the Insurance and Surety Bond forms prescribed by the FMCSA for motor carriers operating in interstate commerce should apply to all motor carriers subject to the jurisdiction of the Commissioner, whether such carriers are operating solely in interstate commerce, solely in intrastate commerce, or in interstate and intrastate commerce.