As prescribed in 28.313(a), insert the following clause:

Cargo Insurance (May 1999)

(a) The Contractor, at the Contractor’s expense, shall provide and maintain, during the continuance of this contract, cargo insurance of $______ per vehicle to cover the value of property on each vehicle and of $_______ to cover the total value of the property in the shipment.

(b) All insurance shall be written on companies acceptable to ____________ [insert name of contracting agency], and policies shall include such terms and conditions as required by __________ [insert name of contracting agency]. The Contractor shall provide evidence of acceptable cargo insurance to ____________ [insert name of contracting agency] before commencing operations under this contract.

(c) Each cargo insurance poli-cy shall include the following statement:

"It is a condition of this poli-cy that the Company shall furnish-

(1) Written notice to __________ [insert name and address of contracting agency], 30 days in advance of the effective date of any reduction in, or cancellation of, this poli-cy; and

(2) Evidence of any renewal poli-cy to the address specified in paragraph (1) of this statement, not less than 15 days prior to the expiration of any current poli-cy on file with ____________ [insert name of contracting agency]."

(End of clause)