Vermont § 801 - Proof of financial responsibility required

§ 801. Proof of financial responsibility required

• (a) The Commissioner shall require proof of financial responsibility to satisfy any claim
  for damages, by reason of personal injury to or the death of any person, of at least
  $25,000.00 for one person and $50,000.00 for two or more persons killed or injured
  and $10,000.00 for damages to property in any one crash, as follows: (1) From a person who is convicted of any of the following violations of this title: (A) Death resulting from: (i) careless and negligent operation of a motor vehicle; or (ii) reckless driving of a motor vehicle. (B) Any violation of section 1201 of this title or for any suspension pursuant to section 1205 of this title. (C) Failing to immediately stop and render such assistance as may be reasonably necessary
  following a crash resulting in injury to any person or property, other than the vehicle
  then under his or her control. (D) Operating, taking, using, or removing a motor vehicle without the consent of the owner
  in violation of section 1094 of this title. (E) Operating a motor vehicle after suspension, revocation, or refusal of a license, in
  violation of section 674 of this title. (F) [Repealed.] (G) [Repealed.] (H) The provisions of subdivisions (A), (C), (D), and (E) of this subdivision (a)(1) shall
  not apply to an operator furnishing the Commissioner with satisfactory proof that
  a standard provisions automobile liability insurance policy, issued by an insurance
  company authorized to transact business in this State insuring the operator against
  public liability and property damage, in the amounts required under this section with
  respect to proof of financial responsibility, was in effect at the time of the violation.
  Nor shall these provisions apply if the operator was a nonresident, holding a valid
  license issued by the state of his or her residence, at the time of the violation,
  and satisfactory proof, in the form of a certificate issued by an insurance company
  authorized to transact business in the state of his or her residence, and accompanied
  by a power of attorney authorizing the Commissioner to accept service on its behalf,
  of notice or process in any action arising out of the violation, certifying that insurance
  covering the legal liability of the operator to satisfy any claim or claims for damage
  to person or property, in an amount equal to the amounts required under this section
  with respect to proof of financial responsibility was in effect at the time of the
  violation. (2) From a person against whom there is an outstanding unsatisfied judgment of a court
  of competent jurisdiction within this State for damages arising out of a motor vehicle
  crash and based upon any violation of the provisions of this title. (3) From the operator of a motor vehicle involved in a crash that resulted in bodily injury
  or death to any person or property damage, including to the motor vehicle under the
  operator’s control, in an aggregate amount to the extent of $3,000.00 or more, excepting,
  however: (A) an operator furnishing the Commissioner with satisfactory proof that a standard provisions
  automobile liability insurance policy, issued by an insurance company authorized to
  transact business in this State insuring the person against public liability and property
  damage, in the amounts required under this section with respect to proof of financial
  responsibility, was in effect at the time of the crash; or (B) a nonresident operator holding a valid license issued by the state of his or her residence
  at the time of the crash who furnishes satisfactory proof, in the form of a certificate
  issued by an insurance company authorized to transact business in the state of his
  or her residence, when accompanied by a power of attorney authorizing the Commissioner
  to accept service on its behalf of notice or process in any action upon the policy
  arising out of the crash, certifying that insurance covering the legal liability of
  the operator to satisfy any claim or claims for damage to person or property, in an
  amount equal to the amounts required under this section with respect to proof of financial
  responsibility, was in effect at the time of the crash. (b) The provisions of subdivision (a)(3) of this section shall not apply to the operator
  of a motor vehicle, involved in a crash, if at the time of the crash the motor vehicle
  he or she was operating, whether attended or unattended, was legally parked in any
  location other than upon a public highway. Nor shall the provisions of that subdivision
  apply to the operator of an all-terrain vehicle when the vehicle is registered and
  operated pursuant to chapter 31 of this title. (c) In lieu of the insurance policy or surety bond required under this section, a person
  may qualify as a self-insurer by obtaining a certificate of self-insurance from the
  Commissioner, who may, in his or her discretion, upon the application of such person,
  issue said certificate of self-insurance, when he or she is satisfied that such person
  is possessed of a net unencumbered capital of at least $115,000.00. The Commissioner
  may require annual reports from any self-insurer, which reports must show at least
  $115,000.00 unencumbered net worth. Whenever the Commissioner finds that any self-insurer
  does not possess $115,000.00 of unencumbered net worth, he or she shall revoke the
  certificate of self-insurance. Failure to pay any judgment, within statutory limits,
  after such judgment shall have become final, shall constitute reasonable grounds for
  the cancellation of a certificate of self-insurance. A certificate of self-insurance
  obtained by a self-insurer shall insure every person operating a motor vehicle, owned
  by said self-insurer, with his or her express or implied permission, against loss
  within statutory limits from the liability imposed by law upon such person arising
  out of the operation of said motor vehicle and shall be for the benefit of any person
  suffering personal injuries or property damage arising out of the use of such motor
  vehicle with such express or implied permission. (d) Where erroneous information with respect to insurance coverage is furnished to the
  Commissioner by the operator involved in a crash, the Commissioner shall, after receipt
  by him or her of correct information with respect to such coverage, take appropriate
  action as provided in section 802 of this title. (e) Within 15 days after the receipt from the Commissioner of notice of claimed insurance
  coverage, the insurance carrier named by the operator shall notify the Commissioner
  in such manner as he or she may require in case the required insurance was not in
  effect at the time specified in the notice. If no such notification is received by
  the Commissioner within 15 days, the Commissioner may assume that the required insurance
  was in effect at the time specified in the notice. (Amended 1965, No. 4, § 1; 1969, No. 227 (Adj. Sess.), § 2, eff. May 1, 1970; 1971, No. 151 (Adj. Sess.), §§ 1, 2, eff. March 2, 1972; 1971, No. 258 (Adj. Sess.), § 6, eff. March 1, 1973; 1977, No. 81, § 4, eff. April 27, 1977; 1977, No. 220 (Adj. Sess.), §§ 1, 2; 1979, No. 190 (Adj. Sess.), § 3; 1979, No. 194 (Adj. Sess.), § 1; 1983, No. 61, § 1; 1983, No. 240 (Adj. Sess.), § 2; 1985, No. 230 (Adj. Sess.), § 3; 1995, No. 17, § 1; 1995, No. 67 (Adj. Sess.), § 1; 1997, No. 117 (Adj. Sess.), § 34, eff. April 29, 1998, and Jan. 1, 1999; 1999, No. 102 (Adj. Sess.), § 2; 1999, No. 160 (Adj. Sess.), § 14; 2011, No. 46, § 7; 2015, No. 23, § 122; 2015, No. 47, § 20; 2019, No. 131 (Adj. Sess.), § 164; 2019, No. 170 (Adj. Sess.), § 2, eff. Jan. 1, 2021.)