KRS 281.655: Bonds or insurance policies.

(1) Before any certificate will be issued or renewed, the applicant or holder of the

certificate shall file or shall have on file with the department one (1) or more

approved indemnifying bonds or insurance policies issued by some surety company

or insurance c arrier authorized to transact business within the Commonwealth of

Kentucky. The term of each bond or policy shall be continuous and shall remain in

full force until canceled under proper notice. Each bond or policy shall have

attached thereto the state ins urance endorsement. All bonds or policies required

under this section shall be issued in the name of the holder of the certificate. In lieu

of the bonds or policies, the department, under appropriate regulations, may require

the filing of one (1) or more a pproved certificates of insurance, the terms of which

shall be continuous and shall remain in force and effect until canceled under proper

notice.

(2) The bonds or policies required of a U -Drive-It or automobile utility trailer lessor

shall provide public liability and property damage coverage when operated either

by the lessee or lessor thereof or agents, servants, or employees of either.

(3) All bonds or policies shall provide blanket coverage for all equipment operated

pursuant to the certificate or permit.

(4) The types and minimum amounts of insurance to be carried on each vehicle shall be

as follows:

MOTOR VEHICLES FOR THE TRANSPORTATION OF PERSONS,

INCLUDING U-DRIVE-ITS

Death of Total Liability

or Injury for Death

to Any One of or Injury Property

Capacity Person to Persons Damage

7 regular seats $100,000.00 $300,000.00 $50,000.00

8 or more regular seats $100,000.00 $600,000.00 $50,000.00

MOTOR VEHICLES FOR THE TRANSPORTATION OF PROPERTY,

INCLUDING U-DRIVE-ITS AND AUTOMOBILE UTILITY

TRAILERS

Death of Total Liability

or Injury for Death

to Any One of or Injury Property

Gross Weight Person to Persons Damage

18,000 lbs. or less $100,000.00 $300,000.00 $50,000.00

More than 18,000 lbs. $100,000.00 $600,000.00 $50,000.00

(5) Any person, firm, or corporation operating or causing to be operated any vehicle for

the transportation of petroleum or petroleum products in bulk in amounts less than

ten thousand (10,000) pounds shall have the following types and minimum amount

of insurance carried on each vehicle:

Death of Total Liability

or Injury for Death

to Any One of or Injury to Property

Person Persons Damage

$100,000.00 $300,000.00 $50,000.00

(6) Any person, firm, or corporation operating or causing to be operated any vehicle for

the transportation of hazardous material as defined in KRS 174.405, except

petroleum or petroleum products in bulk in amounts less than ten thousand (10,000)

pounds, shall have on each vehicle single limits liabi lity insurance coverage of not

less than one million dollars ($1,000,000) for all damages whether arising out of

bodily injury or damage to property as a result of any one (1) accident or

occurrence.

(7) Before any household goods certificate shall be issu ed or renewed, the applicant or

certificate holder shall file or have on file with the department an approved

insurance policy or bond compensating shippers or consignees for loss or damage to

property belonging to shippers or consignees and coming into po ssession of the

carrier in connection with its transportation service in the amounts required by 49

C.F.R. sec. 387.303(c) for interstate household goods motor carriers. The policy or

bond shall have attached thereto the Kentucky cargo policy endorsement a nd shall

be issued by some insurance or surety company authorized to transact business

within the Commonwealth of Kentucky. The term of the bond or policy shall be

continuous and shall remain in full force until canceled under proper notice. In lieu

of the bond or policy, the department, under appropriate regulations, may require

the filing of an approved certificate of insurance, the term of which shall be

continuous and shall remain in force and effect until canceled under proper notice.

(8) No insurance company or insurance carrier issuing any policy filed with the

department, and no surety or obligor on any bond or contract filed with the

department, shall be relieved from liability under the policy, bond, or contract until

after the expiration of thirty (30) days' notice to the department of an intention to

cancel the policy, bond, or contract. A prior cancellation may be allowed in cases

where one (1) policy, bond, or contract is substituted for another policy, bond, or

contract if the substituted polic y, bond, or contract is of force and effect at a time

prior to the expiration of thirty (30) days' notice to the department of an intention to

cancel the policy, bond, or contract for which the additional policy, bond, or

contract is being substituted. The acceptance of any notice of an intention to cancel

any policy, bond, or contract or the cancellation of any policy, bond, or contract by

the department, unless under the circumstances set forth, shall not relieve the

insurance company, insurance carrier, surety, or obligor of any liability that accrued

prior to the effective date of the cancellation.

(9) Upon the cancellation of any bond or insurance policy required by this section, all

operating rights granted by the certificate for which the bond or poli cy was filed,

shall immediately cease, and the department may immediately require the cessation

of all operations conducted under authority of the certificate, and may require the

immediate surrender of all certificates, licenses, and other evidence of a r ight to act

as a motor carrier.

(10) The department may exempt in whole or in part from the requirements of this

section any person who applies for the exemption and shows to the satisfaction of

the department that, by reason of the financial ability of th e person applying, there

is due assurance of the payment of all damages for which he or she may become

liable as a result of the operation of any vehicle owned by him or her or operated

under authority of his or her certificate.

(11) The provisions of this section notwithstanding, the Secretary of Transportation may

adopt, incorporate by reference, or set forth in its entirety the provisions of Title 49,

United States Code of Federal Regulations, Part 387, relating to the levels of

financial responsibility for motor carriers, in effect as of June 24, 2015, or as

amended after that date, with respect to any motor carrier operating in Kentucky.

(12) The cabinet shall promulgate administrative regulations to set standards for pre -trip

acceptance liability policies and prearranged ride liability insurance policies for

transportation network company vehicles. The minimum amount of insurance for

pre-trip acceptance liability policies shall be fifty thousand dollars ($50,000) for

death and personal injury to one (1) person, one hundred thousand dollars

($100,000) for death and personal injury resulting from one (1) incident, and

twenty-five thousand dollars ($25,000) for property damage. The minimum amount

of insurance for prearranged ride liability policies shall be the same as for motor

vehicles for the transportation of persons under subsection (4) of this section. Pre -

trip acceptance liability policies a nd prearranged ride liability policies may be

issued by an eligible surplus lines insurer.

(13) Notwithstanding any other provision of this section, any fully autonomous vehicle

operating under a certificate issued under this chapter shall have on file wit h the

department indemnifying bonds or insurance policies in the minimum amounts of:

(a) One million dollars ($1,000,000) of total liability for death of or injury to

persons resulting from any one (1) accident; and

(b) One million dollars ($1,000,000) for property damage.