Fireman's Fund Insurance v. Allstate Insurance

This appeal involves the Highway Carriers’ Act (Pub. Util. Code, § 3501 et seq.) which requires a highway carrier to obtain “adequate protection” against liability for personal injury or death as a prerequisite to the issuance or continuance of an operating permit. (§ 3631.) A carrier must supply the Public Utilities Commission (PUC) with evidence of insurance, bond, or qualification as a self-insurer. (§ 3632.) Section 3634 provides “[t]he policy of insurance or surety bond shall not be cancelable on less than 30 days’ written notice to the commission, except in the event of cessation of operations as a highway carrier . . . .” (Italics added.) This limitation on cancellation is repeated in PUC General Order 100-K: “Every insurance certificate . . . shall contain a provision that such certificate . . . shall remain in full force and effect until canceled in the manner provided by Section (5) of this General Order.” (Italics added.) Section (5) of General Order 100-K provides: “A certificate of insurance . . . shall not be cancel-able on less than thirty (30) days’ written notice to the Public Utilities Commission, such notice to commence to run from the date notice is…