{"data":{"id":"us-ky/krs-281.655","jurisdiction":"us-ky","citation":"KRS 281.655","heading":"Bonds or insurance policies.","body":"(1) Before any certificate will be issued or renewed, the applicant or holder of the\ncertificate shall file or shall have on file with the department one (1) or more\napproved indemnifying bonds or insurance policies issued by some surety company\nor insurance c arrier authorized to transact business within the Commonwealth of\nKentucky. The term of each bond or policy shall be continuous and shall remain in\nfull force until canceled under proper notice. Each bond or policy shall have\nattached thereto the state ins urance endorsement. All bonds or policies required\nunder this section shall be issued in the name of the holder of the certificate. In lieu\nof the bonds or policies, the department, under appropriate regulations, may require\nthe filing of one (1) or more a pproved certificates of insurance, the terms of which\nshall be continuous and shall remain in force and effect until canceled under proper\nnotice.\n(2) The bonds or policies required of a U -Drive-It or automobile utility trailer lessor\nshall provide public liability and property damage coverage when operated either\nby the lessee or lessor thereof or agents, servants, or employees of either.\n(3) All bonds or policies shall provide blanket coverage for all equipment operated\npursuant to the certificate or permit.\n(4) The types and minimum amounts of insurance to be carried on each vehicle shall be\nas follows:\nMOTOR VEHICLES FOR THE TRANSPORTATION OF PERSONS,\nINCLUDING U-DRIVE-ITS\nDeath of Total Liability\nor Injury for Death\nto Any One of or Injury Property\nCapacity  Person to Persons Damage\n7 regular seats  $100,000.00 $300,000.00 $50,000.00\n8 or more regular seats  $100,000.00 $600,000.00 $50,000.00\nMOTOR VEHICLES FOR THE TRANSPORTATION OF PROPERTY,\nINCLUDING U-DRIVE-ITS AND AUTOMOBILE UTILITY\nTRAILERS\nDeath of Total Liability\nor Injury for Death\nto Any One of or Injury Property\nGross Weight  Person to Persons Damage\n18,000 lbs. or less  $100,000.00 $300,000.00 $50,000.00\nMore than 18,000 lbs.  $100,000.00 $600,000.00 $50,000.00\n(5) Any person, firm, or corporation operating or causing to be operated any vehicle for\nthe transportation of petroleum or petroleum products in bulk in amounts less than\nten thousand (10,000) pounds shall have the following types and minimum amount\nof insurance carried on each vehicle:\nDeath of Total Liability\nor Injury for Death\nto Any One of or Injury to Property\nPerson Persons Damage\n$100,000.00 $300,000.00 $50,000.00\n(6) Any person, firm, or corporation operating or causing to be operated any vehicle for\nthe transportation of hazardous material as defined in KRS 174.405, except\npetroleum or petroleum products in bulk in amounts less than ten thousand (10,000)\npounds, shall have on each vehicle single limits liabi lity insurance coverage of not\nless than one million dollars ($1,000,000) for all damages whether arising out of\nbodily injury or damage to property as a result of any one (1) accident or\noccurrence.\n(7) Before any household goods certificate shall be issu ed or renewed, the applicant or\ncertificate holder shall file or have on file with the department an approved\ninsurance policy or bond compensating shippers or consignees for loss or damage to\nproperty belonging to shippers or consignees and coming into po ssession of the\ncarrier in connection with its transportation service in the amounts required by 49\nC.F.R. sec. 387.303(c) for interstate household goods motor carriers. The policy or\nbond shall have attached thereto the Kentucky cargo policy endorsement a nd shall\nbe issued by some insurance or surety company authorized to transact business\nwithin the Commonwealth of Kentucky. The term of the bond or policy shall be\ncontinuous and shall remain in full force until canceled under proper notice. In lieu\nof the bond or policy, the department, under appropriate regulations, may require\nthe filing of an approved certificate of insurance, the term of which shall be\ncontinuous and shall remain in force and effect until canceled under proper notice.\n(8) No insurance company or insurance carrier issuing any policy filed with the\ndepartment, and no surety or obligor on any bond or contract filed with the\ndepartment, shall be relieved from liability under the policy, bond, or contract until\nafter the expiration of thirty  (30) days' notice to the department of an intention to\ncancel the policy, bond, or contract. A prior cancellation may be allowed in cases\nwhere one (1) policy, bond, or contract is substituted for another policy, bond, or\ncontract if the substituted polic y, bond, or contract is of force and effect at a time\nprior to the expiration of thirty (30) days' notice to the department of an intention to\ncancel the policy, bond, or contract for which the additional policy, bond, or\ncontract is being substituted. The  acceptance of any notice of an intention to cancel\nany policy, bond, or contract or the cancellation of any policy, bond, or contract by\nthe department, unless under the circumstances set forth, shall not relieve the\ninsurance company, insurance carrier, surety, or obligor of any liability that accrued\nprior to the effective date of the cancellation.\n(9) Upon the cancellation of any bond or insurance policy required by this section, all\noperating rights granted by the certificate for which the bond or poli cy was filed,\nshall immediately cease, and the department may immediately require the cessation\nof all operations conducted under authority of the certificate, and may require the\nimmediate surrender of all certificates, licenses, and other evidence of a r ight to act\nas a motor carrier.\n(10) The department may exempt in whole or in part from the requirements of this\nsection any person who applies for the exemption and shows to the satisfaction of\nthe department that, by reason of the financial ability of th e person applying, there\nis due assurance of the payment of all damages for which he or she may become\nliable as a result of the operation of any vehicle owned by him or her or operated\nunder authority of his or her certificate.\n(11) The provisions of this section notwithstanding, the Secretary of Transportation may\nadopt, incorporate by reference, or set forth in its entirety the provisions of Title 49,\nUnited States Code of Federal Regulations, Part 387, relating to the levels of\nfinancial responsibility for motor carriers, in effect as of June 24, 2015, or as\namended after that date, with respect to any motor carrier operating in Kentucky.\n(12) The cabinet shall promulgate administrative regulations to set standards for pre -trip\nacceptance liability policies and prearranged ride liability insurance policies for\ntransportation network company vehicles. The minimum amount of insurance for\npre-trip acceptance liability policies shall be fifty thousand dollars ($50,000) for\ndeath and personal injury to one (1) person, one hundred thousand dollars\n($100,000) for death and personal injury resulting from one (1) incident, and\ntwenty-five thousand dollars ($25,000) for property damage. The minimum amount\nof insurance for prearranged ride liability policies shall be the same as for motor\nvehicles for the transportation of persons under subsection (4) of this section. Pre -\ntrip acceptance liability policies a nd prearranged ride liability policies may be\nissued by an eligible surplus lines insurer.\n(13) Notwithstanding any other provision of this section, any fully autonomous vehicle\noperating under a certificate issued under this chapter shall have on file wit h the\ndepartment indemnifying bonds or insurance policies in the minimum amounts of:\n(a) One million dollars ($1,000,000) of total liability for death of or injury to\npersons resulting from any one (1) accident; and\n(b) One million dollars ($1,000,000) for property damage.","path":["KRS Chapter 281"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55499","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:33Z","sha256":"70a4a3a86f06a143ada3e503a1f5c82f4f29154d094bd6409737203b98e02cc1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-281.650","next":"us-ky/krs-281.656"},"notice":"GroundRules: Original legal text. Not legal advice."}