BMC-85 Trust Agreements

Yes, PFA Transportation Insurance & Surety Services is a licensed claims adjuster for financial institutions authorized by the Federal Motor Carrier Safety Administration (FMCSA). We specialize in claims processing of BMC-84 Surety Bonds and BMC-85 Trust Agreements. We have represented commercial banks and financial institutions since 1995 and currently handle more than 15,000 claims per year. We are experts at what we do! Our dedicated staff is here to assist in expediting the claims process and can effectively act as a middleman between the claimant and the broker.

Claimants (carriers, shippers, and/or authorized third parties) first need to provide some basic information: the MC # of the broker, your carrier’s MC # and contact information (including email and phone number), the date(s) the load(s) picked up and the total dollar amount owed. This can be accomplished by going to our website at PFAprotects.com, scrolling down to the bottom of the main page and clicking on the big green bar that states “Submit a BMC-84 or BMC-85 Claim Here”. Upon the initial submission online, an email with a status update will be sent to the email address provided. Should your load(s) qualify, the email will contain login information to our claimant portal where you must provide additional load details as well as upload the required supporting documentation: rate confirmation, bill of lading, and carrier’s invoice for each load you wish to submit. Upon completion of the process, our claims staff will verify the information provided. We work directly with our active brokers to get valid claims paid quickly. In 95% of the claim inquiries, the broker pays the claimant after being informed a claim has been filed against their surety. If pending claims total more than the $75,000 surety instrument, or if the broker stops communicating with us, or if the broker stops providing timely payments to the claimant, we will recommend the Surety issue a “Notice of Cancellation”. The FMCSA allows brokers to operate for an additional 30 days after the filing of a Notice of Cancellation. We must accept claims against a cancelled broker’s surety instrument for 60 days after their effective cancellation date with the FMCSA. If a broker is not reinstated and their claims continue to multiply, we will not be able to determine the amount each claimant will receive until after the application period has expired. Payouts are conducted in one of two ways: Full claim payout – claims did not exceed the surety instrument and all valid claims are paid in full. Pro rata payout – each valid claimant is paid a pro-rata percentage of what they are owed.

The FMCSA requires a $75,000 surety instrument be filed for a transportation broker’s license. Both the BMC-84 (“bond”) and the BMC-85 (“trust agreement”) fulfill this requirement. The basic difference between the two is that a BMC-84 is issued by an insurance company while a BMC-85 is issued by a financial institution. An insurance adjuster may see thousands of claims per year, but only a handful of those claims will involve a BMC-84. The claims adjuster’s lack of experience in BMC-84 and BMC-85 claims, total volume of other claims, and lack of accountability to the policy holder because of their discretion over the corpus of the bond inevitably leads to claims being paid too quickly and to the detriment of both the broker and other valid claimants. At PFA Transportation Insurance & Surety Services, we only handle claims against BMC-84 and BMC-85 surety instruments. We faithfully uphold our fiduciary obligation to investigate all submitted claims. Proper investigation and adherence to the principles of good faith and fair dealing help prevent fraudulent claims getting paid and monies remain available to pay valid claims.

If the amount of claims received exceeds the $75,000 surety instrument, it is not possible for a Surety to fully compensate all valid claimants. Claimants often seek multiple options for recovery. We ask that claimants contact us if they receive payment from another source so that we can record any full or partial payments against the total amount due on a claim. In some instances, carriers unable to collect the full amount of freight charges from the surety instrument can proceed collaterally against the underlying shipper or consignee. You should contact legal counsel in your State to determine if that option is available in your circumstances.