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Canal Ins. Co. v. Coleman, No. 10-60196

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By FindLaw Staff on November 02, 2010 1:33 PM

Declaratory Action by Insurer

In Canal Ins. Co. v. Coleman, No. 10-60196, an action by an insurer seeking a declaratory judgment that its policy's MCS-90 endorsement did not cover an accident where the truck involved was not engaged in the transportation of property at the time of the accident, the court affirmed summary judgment for plaintiff where the MCS-90 covered only liability for the transportation of property.

 

As the court wrote:  "An MCS-90 endorsement to an automotive insurance policy obligates an
insurer to cover an insured's negligence involving "vehicles subject to the financial responsibility requirements of . . . the Motor Carrier Act." The Motor Carrier Act, in turn, creates minimum levels of financial responsibility "for the transportation of property by motor carrier . . . within the United States." Plaintiff-appellee Canal Insurance Company seeks a declaratory judgment that the MCS-90 endorsement does not cover an accident where the truck involved was not engaged in the transportation of property at the time of the accident."

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