27 CAR § 110-1905 – Released Value — Insurance to be offered by carrier

(a) Carriers shall not advertise or represent to the public that "all loads are insured" or other similar wording, unless such carrier under its intrastate tariff assumes complete liability against all loss or damage to the shipment.
(b)
1. (1) The carrier's maximum liability shall be either:
  1. (A) One dollar and twenty-five cents ($1.25) times the actual weight (in pounds) of the shipment or the declared lump sum value, whichever is greater; or
  2. (B) Sixty cents (60¢) per pound for the actual weight of any lost or damaged article or articles, if the shipment has been expressly released by the shipper to such value per article.
2. (2) Unless the shipper expressly releases the shipment to a value not exceeding sixty cents (60¢) per pound per article, the carrier's maximum liability for loss and damage shall be either the lump sum value declared by the shipper or an amount equal to one dollar and twenty-five cents ($1.25) for each pound of weight in the shipment, whichever is greater.
(c) The following language must be printed in bold type or stamped in a contrasting color of ink in a prominent spot on the front side of the bill of lading: TO OWNER OF GOODS: DO NOT WRITE ON THIS BILL OF LADING UNTIL YOU HAVE READ THE PAPER HEADED "NOTICE TO SHIPPERS".
(d) The released value must be entered on the bill of lading in the following form and may be completed only by the person signing the bill of lading: The shipment will move subject to the rules and conditions of the carrier's tariff. Shipper hereby released the entire shipment to a value not exceeding___________________ (To be completed by the person signing below.) NOTICE: THE SHIPPER SIGNING THIS CONTRACT MUST INSERT IN THE SPACE ABOVE, IN HIS OWN HANDWRITING, EITHER HIS DECLARATION OF THE ACTUAL VALUE OF THE SHIPMENT, OR THE WORDS "60 CENTS PER POUND PER ARTICLE". OTHERWISE, THE SHIPMENT WILL BE DEEMED RELEASED TO A MAXIMUM VALUE EQUAL TO $1.25 TIMES THE WEIGHT OF THE SHIPMENT IN POUNDS. _________________________ (Shipper) _________________________ (Date)
(e)
1. (1) Where the shipper is the employer of the actual owner of the household goods being transported and is responsible for all transportation charges in connection with such a move, the shipper may instruct the motor carrier to release the shipment to a value of sixty cents (60¢) per pound per article:
  1. (A) By inspection made on a purchase order; or
  2. (B) By issuing, in advance of the shipping date, appropriate letters of instruction to the carrier.
2. (2) In such instances, the motor carrier must incorporate the instructions by reference to the document in subdivisions (e)(1)(A) or (e)(1)(B) of this section in the bill of lading in lieu of the personal signature and handwritten statement relating to released rates.
3. (3) However, in all movements where the goods are being shipped by an employer of the owner of the goods, the actual owner of the goods being shipped shall be provided with a copy of the Notice to Shippers and shall be permitted to purchase from the carrier a certificate of insurance for the value of the shipment, not less than one dollar and twenty-five cents ($1.25) per pound.
(f) If the shipper fails to make the entry required in subsection (d) of this section, the shipment will be deemed released to an amount equal to one dollar and twenty-five cents ($1.25) times the actual weight of the shipment (in pounds).
(g) The released value and the carrier's maximum liability (whether or not loss or damage occurred from carrier negligence), as determined under this section, shall apply to any claims resulting from the performance or failure to perform by carrier of any services, including accessorial services, which carrier has contracted to perform.
(h)
1. (1) When a shipment is not expressly released to sixty cents (60¢) per pound per article as set forth in subsection (d) of this section, or as permitted in subsection (e) of this section, the carrier shall sell to the shipper a certificate of insurance for the amount of the carrier's maximum liability as determined under subdivision (b)(1)(A) of this section.
2. (2) This insurance shall be obtained through the carrier at the least expensive rate possible, to be approved by the State Highway Commission, and shall be sold to shippers at a rate which will afford no profit to the carrier.
3. (3) A carrier must inform a shipper that unless he or she elects to purchase this additional insurance, neither carrier nor insurance company will be fully liable for loss or damage.
4. (4) Provided, that if the carrier has failed to sell to the shipper a certificate of insurance when the shipment has not been released at sixty cents (60¢) per pound per article, the carrier's maximum liability under the provisions of this section shall not be altered.