2006 Code of Virginia § 46.2-2053 - Surety bonds, insurance, letter of credit, or securities required prior to issuance of registration...

46.2-2053. Surety bonds, insurance, letter of credit, or securitiesrequired prior to issuance of registration; amounts.

A. No certificate, permit, identification marker, registration card, orlicense plate shall be issued by the Department to any vehicle operated by amotor carrier until the motor carrier certifies to the Department that thevehicle is covered by:

1. An insurance policy or bond;

2. A certificate of insurance in lieu of the insurance policy or bond,certifying that such policy or bond covers the liability of such motorcarrier in accordance with the provisions of this article, is issued by anauthorized insurer, or in the case of bonds, is in an amount approved by theDepartment. The bonds may be issued by the Commonwealth of Virginia, theUnited States of America, or any municipality in the Commonwealth. Such bondsshall be deposited with the State Treasurer and the surety shall not bereduced except in accordance with an order of the Department;

3. An unconditional letter of credit, issued by a bank doing business inVirginia, for an amount approved by the Department. The letter of creditshall be in effect so long as the motor carrier operates motor vehicles inthe Commonwealth; or

4. In the case of a lessor who acts as a registrant for purposes ofconsolidating lessees' vehicle registration applications, a statement thatthe registrant has, before leasing a vehicle, obtained from the lessee aninsurance policy, bond, or certificate of insurance in lieu of the insurancepolicy or bond and can make available said proof of insurance coverage upondemand.

Vehicles operated by carriers who have filed proof of financialresponsibility in accordance with the single state registration systemauthorized by 49 U.S.C. 14504 or the Unified Carrier Registration Systemauthorized by 49 U.S.C. 14504a are deemed to have fulfilled therequirements of this article for insurance purposes, provided there is onboard the vehicle a copy of an insurance receipt issued pursuant to thefederal regulations promulgated pursuant to 49 U.S.C. 14504 or 14504a. TheDepartment is further authorized to issue single state registration system orunified carrier registration system receipts to any qualified carrier as wellas to collect and disperse the fees for and to qualified jurisdictions.

B. All motor carriers shall keep in force at all times insurance, a bond orbonds, in an amount required by this section. Except for taxicabs, theminimum financial responsibility requirements for motor carriers operatingintrastate shall be based on the number of passengers a vehicle is designedor manufactured to transport, including the driver, and shall be as follows:one to six passengers - $350,000; seven to 15 passengers - $1,500,000; 16 ormore passengers - $5,000,000. All motor carriers operating exclusivelytaxicabs or other motor vehicles performing a taxicab service shall maintainliability insurance of at least $125,000.

C. The minimum insurance for motor carriers operating in interstate commerceshall equal the minimum required by federal law, rule, or regulation. Anymotor carrier that meets the minimum federal financial responsibilityrequirements and also operates in intrastate commerce may submit, in lieu ofa separate filing for its intrastate operation, proof of the minimum federallimits, provided that both interstate and intrastate operations are insured.

(2001, c. 596; 2006, c. 208.)