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Introduced by   Representatives Gervais of Enosburg, Keenan of St. Albans City, Allard of St. Albans Town, Aswad of Burlington, Branagan of Georgia, Clarkson of Woodstock, Donaghy of Poultney, Evans of Essex, Flory of Pittsford, Gilbert of Fairfax, Grad of Moretown, Howrigan of Fairfield, Lippert of Hinesburg, Marek of Newfane, Martin of Wolcott, McAllister of Highgate, McDonald of Berlin, McFaun of Barre Town, Mook of Bennington, Morrissey of Bennington, Pellett of Chester, Perry of Richford, Potter of Clarendon and Valliere of Barre City

Referred to Committee on


Subject:  Motor vehicles; financial responsibility; liability insurance

Statement of purpose:  This bill proposes to increase the liability insurance limits required to operate a motor vehicle.


It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  23 V.S.A. § 800(a) is amended to read:

(a)  No An owner or operator of a motor vehicle required to be licensed shall not operate or permit the operation of the vehicle upon the highways of the state without having in effect an automobile liability policy or bond in the amounts of at least $25,000.00 $50,000.00 for one person and $50,000.00 $100,000.00 for two or more persons killed or injured and $10,000.00 $20,000.00 for damages to property in any one accident.  In lieu thereof As an alternative, evidence of self-insurance in the amount of $115,000.00 must may be filed with the commissioner of motor vehicles.  Such financial responsibility Proof of self-insurance shall be maintained and evidenced in a form prescribed by the commissioner.  The commissioner may require that evidence of financial responsibility be produced before motor vehicle inspections are performed pursuant to the requirements of 23 V.S.A. § section 1222 of this title

Sec. 2.  23 V.S.A. § 801(a) and (c) are amended to read:

(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 $50,000.00 for one person and $50,000.00 $100,000.00 for two or more persons killed or injured and $10,000.00 $20,000.00 for damages to property in any one accident, as follows:

* * *

(c)  In lieu of As an alternative to 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 a certificate of

self-insurance, when he or she is satisfied that such the person is possessed of a net unencumbered capital of at least $115,000.00 $225,000.00.  The commissioner may require annual reports from any self-insurer, which reports must show at least $115,000.00 $225,000.00 unencumbered net worth.  Whenever the commissioner finds that any self-insurer does not possess $115,000.00 $225,000,00 of unencumbered net worth, he or she shall revoke the certificate of self-insurance.  Failure to pay any judgment, within statutory limits, after such the judgment shall have become becomes 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 the self-insurer, with his or her express or implied permission, against loss within statutory limits from the liability imposed by law upon such the person arising out of the operation of said the motor vehicle and shall be for the benefit of any person suffering personal injuries or property damage arising out of the use of such the motor vehicle with such the express or implied permission.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont