MCS 90 is not an insurance per-se and constitutes only a guarantee. MCS 90 is an endorsement to the commercial automobile policy or the umbrella policy issued to the carrier. The endorsement constitutes a proof of compliance with the federal regulations. However, it does not constitute a warranty by the insurer that the limits set out are in conformity with the state minimum stipulation. Oftentimes, it is mistakenly assumed that the provisions of MCS 90 apply only to automobiles engaged in interstate transport. However, a closer examination of the provisions reveal that MCS 90 requirement could apply to vehicles engaged in intrastate transport too, subject to certain conditions.
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