Carrier insurance cancellation: what happens next
When an insurer cancels a carrier's liability policy it files a notice of cancellation with FMCSA (Form BMC-35 for BIPD). The cancellation takes effect on a future date, which gives the carrier time to file replacement coverage.
What follows
- If replacement coverage is filed, the record shows the old policy as replaced.
- If not, FMCSA typically serves a suspension notice and the authority can be suspended or revoked.
What brokers should do
Treat a cancellation as a stop-and-verify event: ask the carrier for the replacement policy, confirm it with the agent, and re-check FMCSA before dispatch.