In an action by an insurer seeking a declaration that it had no liability to plaintiffs under a general liability policy, judgment for defendants is reversed where the MCS-90 endorsement in the policy was intended to impose a surety obligation on the insurance company, and thus when an injured party obtains a negligence judgment against a motor carrier, an insurer's obligation under the MCS-90 endorsement is not triggered unless: 1) the underlying insurance policy (to which the endorsement is attached) does not provide liability coverage for the accident; and 2) the carrier's other insurance coverage is either insufficient to meet the federally-mandated minimums or non-existent.
Filed September 3, 2009
Opinion by Judge Tymkovich
R. Clay Porter, Dennis, Corry, Porter & Smith, L.L.P., Atlanta, GA
Beth R. Holck, Dennis, Corry, Porter & Smith, L.L.P., Atlanta, GA