Other Insurance Provisions
The Motor Carrier Coverage Form (MCCF) offers significant advantages over the Truckers Coverage Form (TCF) in defining which policy is primary and which is excess when Other Insurance provisions apply.
With either the MCCF or the TCF, the policyholder (or named insured) is an insured under its own policy. That’s true whether the policyholder leases vehicles to others or leases vehicles from others.
In leasing situations, a lessor may be an insured on a lessee’s policy. Or a lessee may be an insured on a lessor’s policy. The Who Is an Insured section of each policy answers the yes-or-no question of whether another party is an insured. The Other Insurance provisions determine which policy is primary and which is excess.
Under the MCCF, if there is a written hold-harmless agreement between the lessee and the lessor of a covered “auto” (not a trailer), the policy of the party holding the other one harmless extends insured status to the party held harmless and is primary. The policy of the party held harmless is excess and provides no coverage for the other party. If there is no hold-harmless agreement, each policy is primary for “autos” owned by the policyholder and excess for any other covered “autos.”
Under the TCF, by contrast, the lessee’s policy is primary, and the lessor’s policy is excess (subject to other policy provisions). Those things are true whether or not there’s a hold-harmless agreement and no matter what such an agreement says.
Note: In all cases, the Who Is an Insured section determines whether a particular party is an insured. Only after we know whether a party is an insured do we turn to the Other Insurance provisions to determine which policy is primary and which is excess.