Pacific Financial Association, Inc. - BMC-85 Trust Agreements, BMC-84 Bond Conversions Frequently Asked Questions (FAQ).

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Why should I choose Pacific Financial Association, Inc. to fulfill my surety requirement?

Pacific Financial is by far the largest issuer of broker surety instruments (BMC-85 trust fund agreements) in the United States. We have issued over 5,500 BMC-85’s and we currently have over 2,800 active brokers with us which is more than 6 times the amount of our nearest competitor. We are the most experienced company in this field. Our only business is issuing BMC-85 trust fund agreements. By concentrating on only one thing, we can provide you with the best possible service in the industry.

Why should I choose a BMC-85 (trust fund) over a BMC-84 (bond)?

A BMC-84 is a bond issued by an insurance company and a BMC-85 is a trust fund agreement issued by a financial institution such as Pacific Financial Association, Inc. Although, either one fulfills the surety requirement for your brokerage, your interests are better protected with a BMC-85 from Pacific Financial Association, Inc. A trust fund’s biggest advantage over a bond is the control that you have as a broker. When a claim is presented against a trust you are notified immediately. If you can provide a valid reason why the claim should not be paid it won’t. When bonding companies receive a claim they will make the decision for you. They may not even contact you. We believe that since this is your company and your money, you should have a stake in the decisions.

How easy is it to become a broker?

There are 3 things the Federal Motor Carrier Safety Administration (FMCSA) requires from a broker. You must file an OP-1, a BOC-3 and you must fulfill the $10,000 surety requirement by filing either a BMC-84 or BMC-85.

I want to apply, what do I need to do?

Simply fill out our one page Trustor Information Form and fax it to us at 623-209-2626 and we’ll have an approval for you within a couple of hours. You can get the application in one of two ways. The first is to print it from the website. The better way is to call 800-595-2615 and speak with one of our underwriters. They will be able to go over our options with you, fax or e-mail an application to you and then help you fill it out.

Do I have to have $10,000 to start?

Only one (1) of our four (4) plans requires that you put $10,000 cash in your trust fund up front. If you do not have $10,000 in cash one of our other plans may better fit your needs. Click on our Services tab to view all of our plans.

I have less than perfect credit can I still get approved?

We are always able to approve you on some basis. We are more than willing to work with you to try to come up with a workable solution.

What is an OP-1?

The OP-1 is a federal form you must file in order to get your temporary broker MC#. Once you have met all the requirements this will become your permanent MC#. This can be filed on your behalf by a permitting service or you can file this online yourself with the FMCSA.

What is a BOC-3?

This is the filing for your agents for service of process. It lists an address within each state where legal paperwork may be served to your brokerage and then forwarded on to you.

After filing, how much time do I have to file my BOC-3 and my BMC-85 before my OP-1 application is dismissed?

If you have not fulfilled all the broker requirements within 20 days of filing your OP-1 application the FMCSA will issue you a notice that you have 60 days from the date of the notice in which to meet all the requirements or your application will be dismissed.

After I am approved what do I have to do?

When we call you about your approval we will make arrangements to get legal documents to you. We send these out via second day FedEx (overnight is available for $25). Once you receive the documents, they need to be signed and returned. The day that we receive them, they will be electronically filed with the FMCSA.

For how long is my approval good?

Your approval from Pacific Financial Association is good for 6 months from your approval date.

How long does it take to become active to broker?

The FMCSA will not make you active to broker until you file your BOC-3 and your surety requirement has been filed on your behalf. It is usually 7-10 days after the surety requirement has been filed on your behalf before you will be active to broker.

I am already a carrier; can I use the same MC# for my brokerage?

We do not have a problem with you brokering under the same MC# as your carrier, your carrier insurance company might feel differently however. Most insurance companies feel that brokering under the same MC# as your carrier increases their liability and will sometimes cancel your carrier insurance should you choose to broker under the same MC#. We recommend contacting your carrier insurance company to see what their position is before filing for broker authority under the same MC# as your carrier.

How can I check my broker status on the FMCSA website?

You can log onto the FMCSA website . Then scroll to the bottom of the page and select "Continue". In the top right corner of the next page select the box that says "Choose Menu Option". Choose "Carrier Search" and press the "GO" button. Enter your MC# on the next page and select "Search". Choose either "HTML" or "Report" for more information on your brokerage.

Does my trust fund have an expiration date?

Your trust renews every year but does not have an expiration date. Your Trust will remain in effect until the FMCSA, you or we cancel it.

I moved/changed my address, what do I need to do?

First file an address change with the FMCSA. You can do this by logging onto the SAFER website . Then scroll down to the section on the left hand side titled "FMCSA Services" select the first option "FMCSA Registration & Updates". Under the section "Existing Registration Updates" select "b. Filing a change of address". This is a free service on the FMCSA website but does require a credit card to verify your identity. Once this is completed please contact our trust department for an Updated Trustor Information Form so that we may update your record and issue new documents to be signed returned and re-filed with the FMCSA; there is a $50.00 charge from Pacific Financial for this service.

I need to change my company’s name, what do I need to do?

First file for a name change with the FMCSA. You can do this by logging onto the SAFER website . Then scroll down to the section on the left hand side titled "FMCSA Services" select the first option "FMCSA Registration & Updates". Under the section "Existing Registration Updates" select "a. Filing a name change". There is a $14.00 fee on the FMCSA website payable by credit card only. Once this is completed please contact our trust department for an Updated Trustor Information Form so that we may update your record and issue new documents to be signed returned, our re-filing with the FMCSA is mandatory; there is a $100.00 charge from Pacific Financial for this service.

I used to be a broker but haven’t had my authority active in a while, how do I get reinstated?

If your authority has been inactive for less than 2 years you may file for reinstatement with the FMCSA after you re-file the BOC-3 and we re-file the BMC-85 on your behalf. There is an $80.00 fee to file for reinstatement online with the FMCSA yourself or you may pay us a fee of $120.00 to complete this on your behalf.

How do I cancel my BMC-85?

You need to notify us in writing that you wish to cancel. We will then notify the FMCSA that you are canceling the BMC-85. Provided there are no claims we need to take care of first, sixty (60) days from the FMCSA’s effective date of cancellation we will return your trust funds to you.

Who can file a claim against my BMC-85?

In general, a carrier, shipper or a third party (i.e. factoring company, attorney or collection agency) representing a carrier or shipper may file against the BMC-85.

What is required to file a claim?

It will be necessary for the carrier, shipper or third party to provide your broker MC #, their contact information, the dollar amount owed, the date the load was picked up and the commodity transported.

How am I notified of an inquiry or claim against my brokerage?

We immediately fax to the Broker on the same day that an inquiry is called into our office a notice requesting you contact us within 48 hours as to the status of the payment. Upon receipt of the actual claim application, we notify you again via fax with copies of the claim application and a "Broker’s Claim Response" form (this provides you with a format for telling your side of the story) that needs to be filled out and returned to us within 5 business days.

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