2013 Indiana Code TITLE 9. MOTOR VEHICLES ARTICLE 25. FINANCIAL RESPONSIBILITY CHAPTER 4. FINANCIAL RESPONSIBILITY
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IC 9-25-4
Chapter 4. Financial Responsibility
IC 9-25-4-1
Persons, generally, who must meet minimum standards; violation;
suspension of driving privileges or vehicle registration
Sec. 1. (a) This section does not apply to:
(1) an electric personal assistive mobility device;
(2) an off-road vehicle; or
(3) a snowmobile.
(b) A person may not:
(1) register a motor vehicle; or
(2) operate a motor vehicle on a public highway;
in Indiana if financial responsibility is not in effect with respect to
the motor vehicle under section 4 of this chapter, or the person is not
otherwise insured in order to operate the motor vehicle.
(c) A person who violates this section is subject to the suspension
of the person's current driving privileges or motor vehicle
registration, or both, under this article.
As added by P.L.2-1991, SEC.13. Amended by P.L.105-1991, SEC.1;
P.L.59-1994, SEC.3; P.L.143-2002, SEC.8; P.L.125-2012, SEC.244;
P.L.259-2013, SEC.23.
IC 9-25-4-2
Recovery vehicle operators; duty to meet minimum standards;
registration of recovery vehicles; proof of financial responsibility;
retention of records
Sec. 2. A person who operates a recovery vehicle must meet the
minimum standards for financial responsibility that are set forth in
section 6 of this chapter. A recovery vehicle may be registered only
if proof of financial responsibility in amounts required under this
section is produced at the time of registration. The bureau shall retain
a record of that proof in the bureau's files.
As added by P.L.2-1991, SEC.13.
IC 9-25-4-3
Continuous maintenance; verification; suspension; third party
contract
Sec. 3. (a) Financial responsibility in one (1) of the forms required
under this chapter must be continuously maintained as long as a
motor vehicle is operated on a public highway in Indiana.
(b) The bureau may, at any time, verify that a person has financial
responsibility in effect as required under this article.
(c) The bureau shall suspend the driving privileges or motor
vehicle registration, or both, of a person who fails to maintain
financial responsibility as required under this article.
(d) In order to comply with this section, the bureau may contract
with a third party to request proof of financial responsibility from a
person as required under this article. The third party must comply
with the requirements of this article and any rules adopted by the
bureau.
As added by P.L.2-1991, SEC.13. Amended by P.L.125-2012,
SEC.245; P.L.59-2013, SEC.8.
IC 9-25-4-4
When financial responsibility in effect; necessary provisions in and
approval of insurance policies
Sec. 4. (a) For the purposes of this article, financial responsibility
is in effect with respect to a motor vehicle if:
(1) a motor vehicle liability insurance policy issued with respect
to the motor vehicle or operator under IC 9-25-5-7;
(2) a bond executed with respect to the motor vehicle under
section 7 of this chapter; or
(3) the status of the owner or operator of the motor vehicle as
a self-insurer, as recognized by the bureau through the issuance
of a certificate of self-insurance under section 11 of this
chapter;
provides the ability to respond in damages for liability arising out of
the ownership, maintenance, or use of the motor vehicle in amounts
at least equal to those set forth in section 5 or 6 of this chapter.
(b) A motor vehicle liability policy under this article must contain
the terms, conditions, and provisions required by statute and must be
approved by the state insurance commissioner.
As added by P.L.2-1991, SEC.13. Amended by P.L.125-2012,
SEC.246.
IC 9-25-4-5
Minimum amounts of financial responsibility
Sec. 5. Except as provided in section 6 of this chapter, the
minimum amounts of financial responsibility are as follows:
(1) Subject to the limit set forth in subdivision (2), twenty-five
thousand dollars ($25,000) for bodily injury to or the death of
one (1) individual.
(2) Fifty thousand dollars ($50,000) for bodily injury to or the
death of two (2) or more individuals in any one (1) accident.
(3) Ten thousand dollars ($10,000) for damage to or the
destruction of property in one (1) accident.
As added by P.L.2-1991, SEC.13.
IC 9-25-4-6
Recovery vehicles; minimum amounts of financial responsibility
Sec. 6. (a) The minimum standards for financial responsibility for
a Class A recovery vehicle are a combined single limit of seven
hundred fifty thousand dollars ($750,000) for bodily injury and
property damage in any one (1) accident or as follows:
(1) Subject to the limit set forth in subdivision (2), five hundred
thousand dollars ($500,000) for bodily injury to or the death of
one (1) individual.
(2) One million dollars ($1,000,000) for bodily injury to or the
death of two (2) or more individuals in any one (1) accident.
(3) One hundred thousand dollars ($100,000) for damage to or
the destruction of property in one (1) accident.
(b) The minimum standards for financial responsibility for a Class
B recovery vehicle are a combined single limit of three hundred
thousand dollars ($300,000) for bodily injury and property damage
in any one (1) accident or as follows:
(1) Subject to the limit set forth in subdivision (2), one hundred
thousand dollars ($100,000) for bodily injury to or the death of
one (1) individual.
(2) Three hundred thousand dollars ($300,000) for bodily injury
to or the death of two (2) or more individuals in any one (1)
accident.
(3) Fifty thousand dollars ($50,000) for damage to or the
destruction of property in one (1) accident.
As added by P.L.2-1991, SEC.13.
IC 9-25-4-7
Methods of proving financial responsibility
Sec. 7. (a) Proof of financial responsibility as requested by the
bureau:
(1) must be in effect on the date of the request; and
(2) may be given by any of the following methods:
(A) Proof that a policy or policies of operator or motor
vehicle liability insurance, as applicable, have been obtained
and are in full force and effect.
(B) Proof that a bond has been duly executed.
(C) Proof that deposit has been made of money or securities.
(b) Proof of financial responsibility as requested by a law
enforcement officer:
(1) must be in effect on the date of the request; and
(2) may be provided in a paper or electronic format. For
purposes of this subdivision, electronic formats include the
display of an electronic image on a telecommunications device.
As added by P.L.2-1991, SEC.13. Amended by P.L.59-2013, SEC.9.
IC 9-25-4-8
Proof of financial responsibility
Sec. 8. Proof of financial responsibility meeting the requirements
set forth in this article must be filed in a manner prescribed by the
bureau by an insurance carrier of the person for whom proof is
required.
As added by P.L.2-1991, SEC.13. Amended by P.L.125-2012,
SEC.247; P.L.59-2013, SEC.10.
IC 9-25-4-9
Bonds as proof of financial responsibility; notice of bond
cancellation; recovery on claims arising before cancellation
Sec. 9. (a) A person required to give proof of financial
responsibility may file with the bureau a bond under this section. The
bond shall be executed by the person giving the proof and by a surety
company authorized to transact business in Indiana.
(b) The bureau may not accept a bond unless the bond is
conditioned for payments in amounts and under the same
circumstances as would be required in a motor vehicle liability
policy furnished by the person giving proof of financial
responsibility under this article.
(c) A bond filed under this section may not be canceled unless ten
(10) days written notice of cancellation is given to the bureau.
Cancellation of a bond under this subsection does not prevent
recovery on the bond due to a right or cause of action arising before
the date of cancellation.
As added by P.L.2-1991, SEC.13.
IC 9-25-4-10
Deposits with treasurer of state as proof of financial responsibility;
grounds for and amount of limitations on execution; proof of
absence of unsatisfied judgments
Sec. 10. (a) A person required to give proof of financial
responsibility under this article may give proof of financial
responsibility by delivering to the bureau a receipt from the treasurer
of state showing a deposit with the treasurer of state of one (1) of the
following:
(1) Forty thousand dollars ($40,000) in cash or securities that
may legally be purchased by savings banks.
(2) Trust funds with a market value of forty thousand dollars
($40,000).
(b) Money and securities deposited under this section are subject
to execution to satisfy a judgment under this article within the limits
of coverage and subject to the limits on amounts required by this
chapter for motor vehicle liability policies. Money and securities
deposited under this section are not subject to attachment or
execution for a reason not listed under this article.
(c) The treasurer of state may not accept a deposit or issue a
receipt for a deposit under this section, and the bureau may not
accept a receipt for a deposit under this section, unless the person
making the deposit provides evidence that there are no unsatisfied
judgments against the person making the deposit registered in the
office of the circuit court clerk of the county where the person
making the deposit resides.
As added by P.L.2-1991, SEC.13.
IC 9-25-4-11
Certificate of self-insurance; cancellation
Sec. 11. (a) The bureau may, upon the application of a person,
issue a certificate of self-insurance when the bureau is satisfied that
the person making the application is possessed and will continue to
be possessed of the ability to pay a judgment obtained against the
person making the application. A certificate may be issued
authorizing a person to act as a self-insurer for property damage,
bodily injury, or death.
(b) After not less than five (5) days notice and a hearing
concerning the notice, the department may upon reasonable grounds
cancel a certificate of self-insurance. Failure to pay a judgment
within thirty (30) days after the judgment becomes final constitutes
a reasonable ground for the cancellation of a certificate of
self-insurance.
(c) The bureau may only issue a certificate of self-insurance under
rules adopted to implement this section.
As added by P.L.2-1991, SEC.13.
IC 9-25-4-12
Repealed
(Repealed by P.L.59-1994, SEC.12.)
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