                                 CODE OF VIRGINIA

SURETY BONDS, INSURANCE, LETTER OF CREDIT, OR SECURITIES REQUIRED PRIOR TO
ISSUANCE OF REGISTRATION; AMOUNTS (§ 46.2-2053)

A. No certificate, permit, identification marker, registration card, or license
plate shall be issued by the Department to any vehicle operated by a motor
carrier until the motor carrier certifies to the Department that the vehicle 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 motor carrier
   in accordance with the provisions of this article, is issued by an authorized
   insurer, or in the case of bonds, is in an amount approved by the Department.
   The bonds may be issued by the Commonwealth of Virginia, the United States of
   America, or any municipality in the Commonwealth. Such bonds shall be
   deposited with the State Treasurer and the surety shall not be reduced except
   in accordance with an order of the Department;

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

   4. In the case of a lessor who acts as a registrant for purposes of
   consolidating lessees&#8217; vehicle registration applications, a statement
   that the registrant has, before leasing a vehicle, obtained from the lessee an
   insurance policy, bond, or certificate of insurance in lieu of the insurance
   policy or bond and can make available said proof of insurance coverage upon
   demand.
   				Vehicles operated by carriers who have filed proof of financial
   responsibility in accordance with the single state registration system
   authorized by 49 U.S.C. &#xA7; 14504 or the Unified Carrier Registration
   System authorized by 49 U.S.C. &#xA7; 14504a are deemed to have fulfilled the
   requirements of this article for insurance purposes, provided there is on
   board the vehicle a copy of an insurance receipt issued pursuant to the
   federal regulations promulgated pursuant to 49 U.S.C. &#xA7; 14504 or 14504a.
   The Department is further authorized to issue single state registration system
   or unified carrier registration system receipts to any qualified carrier as
   well as 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 or
bonds, in an amount required by this section. Except for taxicabs, the minimum
financial responsibility requirements for motor carriers operating intrastate
shall be based on the number of passengers a vehicle is designed or manufactured
to transport, including the driver, and shall be as follows: one to six
passengers &#8212; $350,000; seven to 15 passengers &#8212; $1,500,000; 16 or
more passengers &#8212; $5,000,000. All motor carriers operating exclusively
taxicabs or other motor vehicles performing a taxicab service shall maintain
liability insurance of at least $125,000.

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

HISTORY: 2001, c. 596; 2006, c. 208.