27 / 30
27
Fall | 2015
HEADER
their behalf, which means the company designates an
agent for the carrier or broker in every state.
Who you use to make a blanket BOC-3 process agent
filing can have serious consequences. You need to know
how and how quickly you will be informed of anything
served on the BOC-3 process agent. You should not
simply hire the lowest cost blanket company since you
may pay dearly for saving a buck now.
The carrier mentioned above also ran into problems
when it received a copy of a notice of a lawsuit on three
weeks after the documents were served on the carrier’s
BOC-3 process agent. The carrier stated that it had
no recollection of ever hiring the blanket company.
I suspect they hired the blanket company because they
received a fax solicitation from it and the price was
cheap. However, the consequences will be expensive.
The problem now is that the lawsuit was filed in small
claims court where the carrier’s response was due
within 14 days after the service date. Thus, the 14 day
deadline had expired a week before the carrier even
found out about the lawsuit. It is very likely that a
default judgment for thousands of dollars will be
entered against the carrier even though it may have
had valid defenses to the claim.
SMS & MCS-150
Check the SMS website and determine your safety
scores in each of the basics and figure out what
violations you might be able to challenge
through DataQs. If you haven’t already, spend some
time looking at your scores and the information
provided and learn about the system. Having alerts in
certain BASICs can be a significant detriment to your
business. Of course, if any of the information
concerning your company is incorrect, correct it.
The MCS-150 form used to update your carrier profile
every two years will also be replaced by the URS
MCSA-1 beginning December 12, 2015. You should
check to confirm when your updates are required and
calendar the same to ensure prompt filing. Failure to
update that information can result in monetary fines
and the revocation of your operating authority.
◉