Surety Law Update Winter 2017
In October 2013, Public Law 112-141 (commonly known as “Moving Ahead for Progress in the 21st Century Act” or “MAP-21”) went into effect under the auspices of the Federal Motor Carriers Safety Administration (FMCSA) which, among other things, increased the security requirement for Freight Forwarders and Freight Broker from $10,000.00 to $75,000.00. See 49 U.S.C.A 13906 (b) (3). Under the statute, Brokers are required to provide minimum security to protect the public with whom they contract, mainly carriers and transportation companies. What follows is a brief discussion of the statute and a proposed rough guideline for evaluating and paying claims under the FMCSA Form BMC-84 Bond.