State Farm Insurance License Practice Exam

What does the MCS-90 endorsement provide?

1. Exclusively comprehensive property coverage

2. Public liability coverage for truckers

3. Deductible reductions for commercial policies

4. Supplementary health insurance for truckers

The correct answer is: Public liability coverage for truckers

The MCS-90 endorsement is a critical component in the realm of commercial trucking insurance, specifically designed to provide public liability coverage for truckers. This endorsement is mandated by federal law and applies to all motor carriers transporting property in interstate or foreign commerce. By providing public liability coverage, the MCS-90 ensures that if a trucker is involved in an accident that causes bodily injury or property damage to another person or entity, there is a layer of protection available to cover the damages. This is particularly important for maintaining safety standards and accountability within the trucking industry, as it helps ensure that victims of trucking accidents can be compensated even if the trucker’s primary insurance limits have been exhausted or if the policy does not contain sufficient coverage. The other options do not accurately describe the purpose of the MCS-90. For instance, exclusive comprehensive property coverage relates to a different type of insurance that protects physical property rather than providing liability coverage. Deductible reductions pertain to adjustments on insurance policies but do not involve the liability aspect that the MCS-90 addresses. Lastly, supplementary health insurance is not a function of the MCS-90 at all; it does not involve health coverage but rather focuses solely on liability in the context of trucking operations.