Form Op-1 - Application For Motor Property Carrier And Broker Authority Page 8

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INSTRUCTIONS OP-1 Revised 01/10/2017

OMB No.: 2126-0016 Expiration: 01/31/2020

• Broker of Property (except Household Goods) — An individual, partnership, or corporation that receives payment for arranging

the transportation of property (excluding household goods) belonging to others by using an authorized Motor Carrier. A Broker

does not assume responsibility for the property and never takes possession of it.

• Broker of Household Goods) — An individual, partnership, or corporation that receives payment for arranging the transportation

of household goods belonging to others by using an authorized Motor Carrier. A Broker does not assume responsibility for the

household goods and never takes possession of the goods. Household goods are personal items that will be used in a home. They

include items shipped from a factory or store, if purchased with the intent to use in a home, and transported at the request of the

householder who pays for the transportation charges.

• United States-based Enterprise Carrier of International Cargo (except Household Goods) — A company that transports

international cargo (excluding household goods) and is headquartered in the United States, but is owned orcontrolled (greater than

55%) by a Mexican citizen or resident alien. International cargo must originate in or be destined for a foreign country. Enterprise

Carriers are not classified as either common or contract Motor Carriers.

• United States-based Enterprise Carrier of International Household Goods — A company that transports international household

goods and is headquartered in the United States, but is owned or controlled (greater than 55%) by a Mexican citizen or resident

alien. Household goods are personal items that will be used in a home. They include items shipped from a factory or store, if

purchased with the intent to use in a home, and transported at the request of the householder who pays for the transportation

charges. International household goods must originate in or be destined for a home in a foreign country. Enterprise Carriers are not

classified as either common or contract Motor Carriers.

SECTION 3 — INSURANCE INFORMATION

Only applicants that will operate commercial motor vehicles must complete this section. The bodily injury and property damage

(BI & PD liability) insurance coverage requirements are based upon the gross vehicle weight rating (GVWR) of vehicles and the

classification of property (including hazardous materials) that will be transported. Check all boxes that apply.

29. Minimum Amount of Coverage Required —

To determine the required minimum amount of BI & PD liability insurance coverage,

identify the highest dollar amount in parentheses among the insurance categories that are selected. For example, if the boxes for

both non-hazardous commodities ($750,000) and hazardous materials ($5,000,000) are checked, the required minimum insurance

coverage is $5,000,000 — not $5,750,000.

NOTE:

• Motor Common Carriers of Household Goods (HHG), Motor Contract Carriers of HHG, and U.S.-based Enterprise Carriers of International HHG must

maintain a minimum of $750,000 of BI & PD liability insurance coverage regardless ofthe GVWR of the vehicles they operate.

• In addition to BI & PD liability insurance coverage, Motor Common Carriers of Property, Motor Common Carriers of HHG, U.S.-based Enterprise

Carriers of International Cargo, and U.S.-based Enterprise Carriers of International HHG must maintain minimum levels of cargo insurance (Form

BMC-34 for cargo liability) in the amount of:

1) $5,000 for loss of or damage to property carried on any one motor vehicle.

2) $10,000 for loss of or damage to property occurring at any one time and place.

• Motor Common Carriers and U.S.-based Enterprise Carriers that transport low-value goods, as specified in 49 CFR 387.301(b), may request an

exemption from cargo insurance requirements by calling the FMCSA Insurance Team, Office of Registration and Safety Information, at 1-866-637-0635

(toll-free) or 202-385-2423 and requesting a cargo exemption form.

• Motor Contract Carriers of Property and Motor Contract Carriers of HHG only require proof of BI & PD liability insurance with FMCSA. Cargo insurance

is not required by Motor Contract Carriers.

• All Brokers are required to have one of the following in the amount of $75,000:

1) Broker/FF Surety Bond (Form BMC-84) must be filed by an insurance company.

2) Broker/FF Trust Fund Agreement (Form BMC-85) must be filed by a financial institution. This form is available at

by request from the FMCSA Insurance Section, Office of Registration and Safety Information, at 1-866-637-0635 (toll-free) or 202-385-2423.

• An insurance company must file the appropriate insurance form(s) on behalf of the applicant within 90 days of the date the application for Operating

Authority was published in the FMCSA Register. Call FMCSA toll-free at 1-866-637-0635 to request information about insurance providers.

• For more information about FMCSA’s insurance regulations, see

“Step 4 —

Insurance” under “What Are the Steps inGetting Operating Authority?” (Topic

IV) in this packet.

INSTRUCTIONS OP-1 • Page viii of x