2006 Code of Virginia § 46.2-368 - Certificate of self-insurance exempts from chapter

46.2-368. Certificate of self-insurance exempts from chapter.

A. This chapter, except 46.2-371 through 46.2-373, shall not apply to anyperson who has registered in his name in the Commonwealth more than twentymotor vehicles, nor to any person operating more than twenty vehicles whetheras owner or as lessee, if the person seeking exemption under this sectionobtains from the Commissioner a certificate of self-insurance as provided insubsection B of this section.

B. The Commissioner may, in his discretion and on the application of such aperson, issue a certificate of self-insurance when he is reasonably satisfied(i) that the person has and will continue to have financial ability torespond to a judgment as provided in this chapter, obtained against theperson, arising out of the ownership, maintenance, use, or operation of hismotor vehicles and (ii) that the certificate provides for protection againstthe uninsured or underinsured motorist to the extent required by 38.2-2206.However, protection against the uninsured or underinsured motorist requiredunder this section shall not exceed the financial requirements of 46.2-472and shall be secondary coverage to any other valid and collectible insuranceproviding the same protection which is available to any person otherwiseentitled to assert a claim to such protection by virtue of this section.

C. No holder of a certificate of self-insurance shall be liable to pay anyjudgment arising out of the use or operation of any motor vehicle covered bysuch certificate by a person who used or operated the vehicle without thepermission of the owner of such vehicle; nor shall any holder of acertificate of self-insurance be liable to pay any judgment arising out ofthe use or operation of any motor vehicle covered by such certificate by apermissive user of such vehicle, where the permissive user has prejudiciallyfailed to cooperate in the defense of the claim which resulted in thejudgment. This subsection shall only apply to a holder of a certificate ofself-insurance who has provided notice of its intention to rely on theprovisions of this subsection as set forth in 38.2-2226.

D. On due notice and hearing, the Commissioner may, in his discretion and onreasonable grounds, cancel a certificate of self-insurance.

(Code 1950, 46-393; 1958, c. 541, 46.1-395; 1972, c. 463; 1989, c. 727;1991, c. 374; 1995, c. 85; 1997, c. 553.)