CORPORATION Bond - Ocean Transportation Intermediary (OTI) Group Supplemental (FMC-69) in All States
Table of Contents
Brief Summary
Form FMC-69 is not an individual OTI bond. It is filed by a group or association of ocean transportation intermediaries that accepts liability for its members, and it sits on top of each member's own coverage. Getting the member list, the aggregate amount and the 30 day replenishment rule right is what keeps every listed member covered.
When a group or association of ocean transportation intermediaries accepts financial responsibility for its members, it files a group bond on Form FMC-69 under 46 CFR 515.22(d). The amount is the lesser of the amount 46 CFR 515.21(a) requires for each member or $3,000,000 in aggregate. This version is signed by a corporate principal, and the Federal Maritime Commission receives it through the Bureau of Certification and Licensing.
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How to Apply for a CORPORATION Bond:
- Notify the FMC that the group or association will provide coverage and supply proof of authority.
- Prepare a CEO certified list of each covered OTI and its existing coverage.
- Calculate the bond amount: lesser of each member's required amount or $3,000,000 aggregate.
- Have the surety execute Form FMC-69 with the corporate principal block and Appendix A member list.
- Email the bond and supporting documents to bcl@fmc.gov.
- Report changes to the member list within 30 days.
Detailed Information About the All States CORPORATION Bond:
Who files a group bond
Ordinarily each ocean freight forwarder or NVOCC posts its own bond on Form FMC-48. 46 CFR 515.21(b) allows a second route. A group or association of OTIs may accept liability for its members and file a group bond, insurance or guaranty that clearly identifies each OTI covered. A covered member cannot start providing OTI services until that filing is in place.
The group bond form is Form FMC-69, published at Appendix D to 46 CFR part 515 and titled the OTI Group Supplemental Coverage Bond Form. The covered OTIs are listed in an Appendix An attached to the bond. The surety must be one found acceptable by the Secretary of the Treasury.
How much
The group must establish financial responsibility equal to the lesser of the amount required for each member under 46 CFR 515.21(a) or $3,000,000 in aggregate. The member amounts are $50,000 for an ocean freight forwarder, $75,000 for a U.S. NVOCC and $150,000 for a registered foreign NVOCC. Where the group secures coverage for claims not covered by a member's own bond, 46 CFR 515.22(d)(5) requires that it sit in excess of that member's individual coverage. If a claim is paid, the bond must be replenished to its original amount within 30 days.
What the group has to give the Commission
Under 46 CFR 515.22(d), the group notifies the Commission that it intends to take part, proves its authority to represent members with documents such as articles of incorporation and bylaws, and provides a list certified by its chief executive officer naming each covered OTI, the amount and type of each member's existing coverage, and each provider's contact details. Changes to the list go to the Commission within 30 days. The group must also collect valid proof of financial responsibility from each member every year.
Corporate principal and filing
This page covers the corporate signature block, which shows the corporate principal, its place of incorporation, any trade name and the signing officer with the corporate seal. A principal that is not a U.S. corporation must also name an agent for service of process. Forms go to the Director, Bureau of Certification and Licensing, at bcl@fmc.gov.
Adding and removing members
A member added to the bond's Appendix An is covered once the Commission receives written notice. A member removed stays covered for 30 days after the Commission receives notice. Either the principal or surety may cancel the whole bond on 30 days written notice.
Eligibility and Requirements for an All States CORPORATION Bond:
- Surety company found acceptable by the Secretary of the Treasury.
- United States of America named as obligee on Form FMC-69.
- Coverage written in excess of each member's individual bond, insurance or guaranty.
- Replenishment to the full amount within 30 days of any paid claim.
- Agent for service of process if the principal is not a U.S. corporation.
- Annual collection of each member's proof of financial responsibility.
All States CORPORATION Bond FAQs:
No. FMC-48 is an individual OTI bond. FMC-69 is filed by a group or association that accepts liability for its member OTIs.
46 CFR 515.21(b) sets it at the lesser of the amount required for each member under 515.21(a) or $3,000,000 in aggregate.
Supplemental coverage the group secures must be in excess of the member's individual coverage already in place, so members keep their own financial responsibility.
The group bond must be replenished to its original amount within 30 days of payment.
Yes. Form FMC-69A is an optional rider for additional NVOCC financial responsibility on group bonds under 46 CFR 515.25(b).
The surety looks at the group's finances, its member roster and claims history. The premium is quoted on the bond amount the group carries.
