Providing your broker's application has been reviewed and accepted by the Federal Motor Carrier Safety Administration (FMCSA), operations may only begin following the issuance of a certificate, license, or permit after the compliance of the following requirements:
If you have your MC #, you may access your status with the FMCSA by going to The Licensing and Insurance Site and by entering your MC # into the Carrier Search.
These programs are offered exclusively by 1st Security Financial Corporation and are in compliance with the new MAP-21 regulations for Property Brokers and Freight Forwarders. If you intend to have both Broker & Freight Forwarder authorities, contact us for special pricing. Plan types and pricing are dependent upon underwriting review. All fees are subject to change.
Please contact our office with any questions you may have regarding our programs
1st Security Financial Corporation is committed to ensuring the highest degree of privacy while offering the most professional services in the industry.
Collection and Usage of Credit Information
When selecting a program which requires an extension of credit, we will obtain a credit report from one of the three major credit reporting agencies. Also, we reserve the right to collect additional information from any and all sources which might help in determining the credit worthiness of an individual applicant. This information is used solely for the determination of credit extension, and will never be used in any other manner.
We welcome suggestions
Claimants (carriers, shippers, and/or authorized third parties) first need to supply some basic information:
Within 24 hours, a claim application will be provided to a qualified claimant.
The claim application must include the required supporting documentation:
In 95% of claim inquiries, the broker pays the claimant after being informed a claim has been filed against their trust.
The Trustee will issue a "Notice of Cancellation"
The FMCSA allows brokers to operate for an additional 30 days after a Notice of Cancellation has been issued.
Claims are normally accepted against a canceled broker's trust account for 60 days after their effective cancellation date with the FMCSA.
If a broker is not reinstated and their claims continue to multiply, trust payouts will not be made until all claimants have had an opportunity to file.
When a time arrives for a trust payout, it will be determined which type of payout is most suitable given the volume of claims.
There are several categories of exemptions from federal economic regulation by the FMCSA. There are also certain categories of invalid claims:
Claimants attorneys may insist that "Federal Regulations" require that the trustee pay their claims immediately, while other claimant attorneys insist that "Federal Regulations" require the trustee defer payment until their claimant has had an opportunity to obtain a judgment against a broker.
While it is understood that each claimant would like to be paid immediately, the trustee has a fiduciary responsibility to handle all claimants equally, professionally, and with established guidelines in administering claims that are fair to the majority.
The FMCSA requires a $10,000 surety instrument to be filed by a transportation broker's license. Both the BMC-84 ("BOND") and the BMC-85 ("TRUST AGREEMENT") fulfill this requirement.
The basic difference between the two is that:
Insurance adjusters may see thousands of claims per year but only a handful of those claims will involve a BMC-84.
The claims adjuster's lack of experience in BMC-84 claims, total volume of other claims, and lack of accountability to the policy holder because of their discretion over the corpus of the bond inevitably leads to the claims being paid too quickly and to the detriment of both the broker and other valid claimants.
Proper investigation and adherence to the principles of good faith and fair dealing insure fraudulent claims do not get paid and monies remain available to pay valid claims.
It is often not possible for Trustees to distribute funds to all valid claims against a $75,000 federal surety instrument. Claimants often seek multiple options for recovery.
In some instances, carriers unable to collect the full amount of freight charges from the surety instrument can proceed collaterally against the underlying shipper or consignee.
You should contact legal counsel in your state to determine if that option is available in your circumstances.