                                 CODE OF VIRGINIA

SURETY BONDS, INSURANCE, LETTER OF CREDIT OR SECURITIES REQUIRED PRIOR TO
ISSUANCE OF REGISTRATION (§ 46.2-2143)

No certificate of fitness, permit, registration card, or license plate shall be
issued by the Department to any motor carrier or for any vehicle operated by or
on behalf of a motor carrier until the motor carrier certifies to the Department
that the vehicle is covered by one or more of the following, in the amount or
amounts set forth in § 46.2-2143.1:

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 belonging to carriers who have filed proof of financial
responsibility in accordance with 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. The Department is further
authorized to register any qualified carrier under the unified carrier
registration system as well as to collect and disperse the fees for registration
under that system.

HISTORY: 2001, c. 596; 2006, c. 208; 2011, cc. 881, 889; 2012, c. 638; 2017, cc.
790, 815.