                                 CODE OF VIRGINIA

WHAT CONSTITUTES PROOF OF FINANCIAL RESPONSIBILITY (§ 5.1-88.2)

A. The following shall constitute proof of financial responsibility as required
by § 5.1-88.1:

   1. The issuance, by an insurance company licensed to write such insurance in
   this Commonwealth, of a policy or policies of bodily injury and property
   damage liability insurance, or a policy or policies written pursuant to
   Chapter 48 (&#xA7; 38.2-4805.1 et seq.) of Title 38.2 that provide coverage
   with respect to each such aircraft in the amount of $50,000 because of bodily
   injury to or death of one person in any one accident, including passenger
   liability, and $100,000 because of bodily injury to or death of two or more
   persons in any one accident, including passenger liability, and to a limit of
   $25,000 because of injury to or destruction of property of others in any one
   accident; or a single limit policy in the sum of $250,000, covering bodily
   injury and property damage liability in any one accident, including passenger
   liability of $50,000 per passenger seat; or

   2. The execution of a bond by the registrant and by a surety company
   authorized to transact business in this Commonwealth conditioned for payment
   in amounts and under the same circumstances as would be required in a policy
   of bodily injury liability and property damage liability insurance, as
   required by the provisions of subdivision A 1; or

   3. The delivery to the Department of $250,000 in cash or an irrevocable letter
   of credit in the amount of $250,000 from a depository institution as defined
   in &#xA7; 2.2-4701. Such money or securities so delivered to the Department
   shall be placed by it in the custody of the State Treasurer and shall be
   subject to execution to satisfy any judgment within the limits on amounts
   required by this chapter for personal injury and property damage liability
   insurance.

B. Notwithstanding the provisions of subsection A of this section, for an
aircraft commonly known as an &#8220;ultralight,&#8221; as the same is now and
may hereafter be defined by the Federal Aviation Administration, the proof of
financial responsibility required by &#xA7; 5.1-88.1 may be satisfied by the
issuance as to that aircraft of a single limit insurance policy in the sum of
$100,000 covering bodily injury and property damage liability in any one
accident, that is issued by an insurance company licensed to write such
insurance in this Commonwealth or written pursuant to Chapter 48 (&#xA7;
38.2-4805.1 et seq.) of Title 38.2.

HISTORY: Code 1950, § 5.1-84; 1968, c. 773; 1970, c. 707; 1979, c. 272; 1984,
c. 169; 1992, c. 810; 2005, c. 451; 2007, c. 207; 2017, c. 793.