2007 California Vehicle Code Article 3. Evidence Of Financial Responsibility

CA Codes (veh:16050-16058.1)

VEHICLE CODE
SECTION 16050-16058.1



16050.  In order to establish evidence of financial responsibility,
every driver or employer involved in an accident and required to
report the accident under Section 16000 shall establish to the
satisfaction of the department that the provisions of this article
are applicable to his or her responsibilities arising out of the
accident.



16050.5.  The owner of a vehicle, who has a liability insurance
policy with respect to the vehicle, shall, upon request, furnish
insurance information to a person who, while operating the vehicle
with the owner's permission, is involved in a reportable accident
with the insured vehicle, or to the department whenever the
department is required to establish whether the permitted driver
meets the financial responsibility requirements of Section 16020.



16051.  Evidence may be established by filing a report indicating
that the motor vehicle involved in the accident was owned or leased
by or under the direction of the United States, this state, or any
political subdivision of this state or municipality thereof.




16052.  Evidence may be established if the owner of the motor
vehicle involved in the accident was a self-insurer.  Any person in
whose name more than 25 motor vehicles are registered may qualify as
a self-insurer by obtaining a certificate of self-insurance issued by
the department as provided in this article.



16053.  (a) The department may in its discretion, upon application,
issue a certificate of self-insurance when it is satisfied that the
applicant in whose name more than 25 motor vehicles are registered is
possessed and will continue to be possessed of ability to pay
judgments obtained against him or her in amounts at least equal to
the amounts provided in Section 16056.  The certificate may be issued
authorizing the applicant to act as a self-insurer for either
property damage or bodily injury or both.  Any person duly qualified
under the laws or ordinances of any city or county to act as
self-insurer and then acting as such, may upon filing with the
department satisfactory evidence thereof, along with the application
as may be required by the department, be entitled to receive a
certificate of self-insurance.
   (b) Upon not less than five days' notice and a hearing pursuant to
the notice, the department may upon reasonable grounds cancel a
certificate of self-insurance.  Failure to pay any judgment within 30
days after the judgment has become final and has not been stayed or
satisfied shall constitute a reasonable ground for the cancellation
of a certificate of self-insurance.



16054.  (a) Evidence may be established by filing with the
department satisfactory documentation:
   (1) That the owner had an automobile liability policy, a motor
vehicle liability policy, or bond in effect at the time of the
accident with respect to the driver or the motor vehicle involved in
the accident, unless it is established that at the time of the
accident the motor vehicle was being operated without the owner's
permission, express or implied, or was parked by a driver who had
been operating the vehicle without permission.
   (2) That the driver of the motor vehicle involved in the accident,
if he or she was not the owner of the motor vehicle, had in effect
at the time of the accident an automobile liability policy or bond
with respect to his or her operation of the motor vehicle not owned
by him or her.
   (3) That the liability as may arise from the driver's operation of
the motor vehicle involved in the accident is, in the judgment of
the department, covered by some form of liability insurance or bond.

   (4) That the owner or driver, if he or she is involved in an
accident while operating a vehicle of less than four wheels, had in
effect at the time of the accident with respect to the driver or
vehicle a liability policy or bond that meets the requirements of
Section 16056.
   (b) Any automobile liability policy or bond referred to in this
section shall comply with the requirements of Section 16056 and
Sections 11580, 11580.011, 11580.1, and 11580.2 of the Insurance
Code, but need not contain provisions other than those required by
those sections, and shall not be governed by Chapter 3 (commencing
with Section 16430).


16054.2.  Evidence may also be established by any of the following:

   (a) By depositing with the department cash in the amount specified
in Section 16056.
   (b) By providing documentation of a liability policy covering the
operation of the vehicle that (A) is issued by a charitable risk pool
operating under Section 5005.1 of the Corporations Code, if the
registered owner of the vehicle is a nonprofit organization that is
exempt from taxation under paragraph (3) of subsection (c) of Section
501 of the United States Internal Revenue Code and (B) the policy is
subject, if the accident has resulted in bodily injury or death, to
a limit, exclusive of interest and costs, of not less than fifteen
thousand dollars (,000) because of bodily injury to or death of
one person in any one accident and, subject to that limit for one
person, to a limit of not less than thirty thousand dollars (,000)
because of bodily injury to or death of two or more persons in any
one accident, and, if the accident has resulted in injury to, or
destruction of property, to a limit of not less than five thousand
dollars (,000) because of injury to or destruction of property of
others in any one accident.
   (c) By any other manner authorized by the department which
effectuates the purposes of this chapter.



16055.  Evidence of insurance or bond shall be submitted by the
insurer or surety in conformance with the requirements of Section
16057.  In the event of notice to the department by the company that
issued one of the above stated policies or bonds that coverage was
not in effect, then the policy or bond shall not operate to establish
evidence as provided for by Section 16054.



16056.  (a) No policy or bond shall be effective under Section 16054
unless issued by an insurance company or surety company admitted to
do business in this state by the Insurance Commissioner, except as
provided in subdivision (b) of this section, nor unless the policy or
bond is subject, if the accident has resulted in bodily injury or
death, to a limit, exclusive of interest and costs, of not less than
fifteen thousand dollars (,000) because of bodily injury to or
death of one person in any one accident and, subject to that limit
for one person, to a limit of not less than thirty thousand dollars
(,000) because of bodily injury to or death of two or more persons
in any one accident, and, if the accident has resulted in injury to,
or destruction of property, to a limit of not less than five
thousand dollars (,000) because of injury to or destruction of
property of others in any one accident.
   (b) No policy or bond shall be effective under Section 16054 with
respect to any vehicle which was not registered in this state or was
a vehicle which was registered elsewhere than in this state at the
effective date of the policy or bond or the most recent renewal
thereof, unless the insurance company or surety company issuing the
policy or bond is admitted to do business in this state, or if the
company is not admitted to do business in this state, unless it
executes a power of attorney authorizing the department to accept
service on its behalf of notice or process in any action upon the
policy or bond arising out of an accident mentioned in subdivision
(a).
   (c) Any nonresident driver whose driving privilege has been
suspended or revoked based upon an action that requires proof of
financial responsibility may, in lieu of providing a certificate of
insurance from a company admitted to do business in California,
provide a written certificate of proof of financial responsibility
that is satisfactory to the department, covers the operation of a
vehicle in this state, meets the liability requirements of this
section, and is from a company that is admitted to do business in
that person's state of residence.


16056.1.  Notwithstanding the coverage limits specified in Section
16056, an automobile insurance policy described in Section 11629.71
of the Insurance Code shall be effective under Section 16054 when
issued by an insurance company admitted to do business in this state
by the Insurance Commissioner and the policy is subject, if the
accident has resulted in bodily injury or death, to a limit,
exclusive of interest and costs, of not less than ten thousand
dollars (,000) because of bodily injury to or death of one person
in any one accident and, subject to that limit for one person, to a
limit of not less than twenty thousand dollars (,000) because of
bodily injury to or death of two or more persons in any one accident,
and if the accident has resulted in injury to, or destruction of
property, to a limit of not less than three thousand dollars (,000)
because of injury to or destruction of property of others in any one
accident.


16057.  Upon receipt of notice of an accident from the department,
the insurance company or surety company named in the notice shall
notify the department within such time and in such manner as the
department may require whenever the policy or bond was not in effect
at the time of the accident.



16058.  (a) On or before July 1, 2005, each insurer that issues
private passenger automobile liability insurance policies and
coverages, or private passenger automobile policies and coverages
issued by an automobile assigned risk plan, as those policies,
coverages, and plans are described in paragraph (1) of subdivision
(a) of Section 4000.37 shall advise the department of the electronic
method to be used for reporting liability insurance information under
subdivisions (b), (c), and (d).  The department shall establish an
electronic conversion schedule.
   (b) On or before January 1, 2006, each insurer shall report all
existing motor vehicle liability insurance policies or coverages
described in subdivision (a) issued for vehicles registered in this
state or to policyholders with a California address, to the
department in a manner that preserves existing reporting
relationships and that allows for smaller insurers and those with
unusual circumstances to be accommodated, consistent with the intent
of this section.  Consistent with the intent of this section, a small
insurer or those with unusual circumstances may be accommodated by,
among other methods, an extension of the mandatory electronic
reporting deadline set forth in this section to no later than July 1,
2006.
   (c) On and after January 1, 2006, each insurer shall
electronically report to the department all issued motor vehicle
liability policies or coverages, as described in subdivision (a),
within 30 days of the effective date of the coverage.
   (d) On and after January 1, 2006, an insurer shall electronically
report to the department the termination of a reported policy or any
change of information previously reported under subdivision (b) or
(c), as specified by the department, within 45 days of the date of
termination or change.  This report shall include the effective date
of the termination, amendment, or cancellation and any other
information that does not exceed that required under subdivision (c).

   (e) (1) Those persons with alternative forms of financial
responsibility pursuant to subdivision (a), (c), (d), or (e) of
Section 16021 shall provide satisfactory evidence of that
responsibility as determined by the department.
   (2) In addition, the department shall establish an alternative
procedure for establishment of satisfactory evidence of financial
responsibility to permit the timely renewal of vehicle registration
when the electronic data has not been updated due to circumstances
beyond the vehicle owner's immediate control.  Those circumstances
may include, but are not limited to, a vehicle identification error
in either the department's or the insurer's records or insurance
purchased too recently to have been electronically transmitted to the
department.  Whenever this alternative procedure is used, the
department shall, subsequent to the issuance of the registration
certificate and indicia, contact the insurer to obtain electronic
data pursuant to subdivision (c).
   (f) The department shall adopt regulations for reporting insurance
information, including, but not limited to, establishing acceptable
timeframes and approved methods for reporting information.




16058.1.  The department shall develop a method by which law
enforcement officers and court personnel, on and after July 1, 2006,
may electronically verify that an insurance policy or bond for a
motor vehicle has been issued.

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