A.R.S. tit. 28 ch. 9 — Arizona Revised Statutes Title 28 Chapter 9 — Vehicle Insurance And Financial Responsibility

28-4001. Definitions In this chapter, unless the context otherwise requires: 1. "Judgment" means a judgment that has become final by expiration without appeal of the time within which an appeal might have been perfected or by final affirmation on appeal and that is rendered by a court of competent jurisdiction of any state or of the United States on a cause of action either: (a) Arising out of the ownership, maintenance or use of a motor vehicle for damages, including damages for care and loss of services, because of either bodily injury to or death of a person or injury to or destruction of property, including the loss of use of the property. (b) On an agreement of settlement for damages described in subdivision (a) of this paragraph. 2. "License" means a license, temporary instruction permit or temporary license issued under the laws of this state pertaining to the licensing of persons to operate motor vehicles. 3. "Motor vehicle" means a self-propelled vehicle that is registered or required to be registered under the laws of this state. 4. "Motor vehicle liability policy" means an owner's or an operator's policy of liability insurance that is both: (a) Certified as provided in section 28-4077 or 28-4078 as proof of financial responsibility. (b) Issued by an insurance carrier duly authorized to transact business in this state, to or for the benefit of the person named as the insured, except as otherwise provided in section 28-4078. 5. "Nonresident operating privilege" means the privilege conferred on a nonresident by the laws of this state pertaining to the nonresident's operation of a motor vehicle or the use of a motor vehicle owned by the nonresident in this state. 6. "Operator" means a person who is in actual physical control of a motor vehicle, whether or not the person has a license. 7. "Proof of financial responsibility" means proof of ability to respond in damages for liability on account of accidents occurring after the effective date of the proof and arising out of the ownership, maintenance or use of a motor vehicle, in the amounts required by section 28-4009 or 28-4033. 8. "Registration" means the registration certificate or certificates and license plates issued under the laws of this state pertaining to the registration of motor vehicles. 9. "State" means a state, territory or possession of the United States, the District of Columbia or a province of the Dominion of Canada. 28-4002. Director; duties The director shall: 1. Administer and enforce this chapter. 2. Print for distribution to the public rules adopted to administer this chapter and furnish the rules to a person on application and payment of the cost as prescribed by the director. 28-4003. Exceptions This chapter does not apply to a motor vehicle that is either: 1. Owned by the United States, this state or a political subdivision of this state. 2. Except for section 28-4085, subject to the requirements of a provision of law requiring insurance or other security on certain types of vehicles. 28-4004. Transfer of registration This chapter does not: 1. Prevent the owner of a motor vehicle whose registration has been suspended under this chapter from effecting a bona fide sale of the motor vehicle to another person whose rights or privileges are not suspended under this chapter. 2. Prevent the transferee from registering the motor vehicle. 3. Affect the rights of a conditional vendor, chattel mortgagee or lessor of a motor vehicle registered in the name of another as owner who becomes subject to this chapter. 28-4005. Past application This chapter does not apply to any accident or judgment arising from an accident or to a violation of the motor vehicle laws of this state occurring before January 1, 1952. 28-4006. Legal processes This chapter does not prevent the plaintiff in an action at law from relying for relief on the other processes provided by law. 28-4007. Self-insurers A. Except as provided in subsection E of this section, a person in whose name more than ten motor vehicles are registered or who is required to comply with the financial responsibility requirements prescribed in article 2 of this chapter may qualify as a self-insurer or partial self-insurer by obtaining a certificate of self-insurance or partial self-insurance issued by the director as provided in this section. B. After determining that the person is financially able and will continue to be able to pay judgments obtained against the person, the director may issue a certificate of self-insurance or partial self-insurance. C. On not less than five days' notice and after a hearing, the director may cancel a certificate of self-insurance or a certificate of partial self-insurance on reasonable grounds. For the purposes of this subsection, "reasonable grounds" includes any of the following circumstances: 1. Failure to pay a judgment within thirty days after the judgment becomes final. 2. Determination by the director that the person has not complied with the financial responsibility requirements of this chapter. 3. Determination by the director that the person knowingly submitted false information that is required by this chapter to this state, a political subdivision of this state, a court or a law enforcement agency. 4. Determination by the director that the person knowingly failed to respond within thirty days to a claim for damages for liability arising out of the ownership, maintenance or use of a motor vehicle. 5. Determination by the director that the person does not meet the bond requirements prescribed in section 28-4011. D. A person who is required to comply with the financial responsibility requirements prescribed in article 2 of this chapter may file an application with the department for partial self-insurance to cover any portion of the financial responsibility requirements. E. A person may also qualify as a self-insurer if the person is insured by a captive insurer that is domiciled and authorized by the department of insurance and financial institutions to transact business in this state and that provides coverage in an amount of at least that required by section 28-4033. F. A person applying for self-insurance or partial self-insurance pursuant to this section shall comply with both of the following at the time of application: 1. The person shall submit evidence in a form prescribed by the director that the person is financially able and will continue to be able to pay the entire amount of self-insurance or partial self-insurance allowed by the director for judgments obtained against the person for liability arising out of the ownership, maintenance or use of a motor vehicle. 2. If applicable, the person shall submit evidence in a form prescribed by the director that the person has a valid insurance policy that meets the requirements prescribed in section 28-4033 and that is issued by an insurer that holds a valid certificate of authority or that is allowed to transact surplus lines insurance in this state. G. The director may adopt rules to implement this section, including rules requiring additional evidence that the person meets the financial responsibility requirements of this chapter and rules providing for the periodic submission of evidence demonstrating that the person meets the standards required by the department to qualify as a self-insurer, a captive insurer or partial self-insurer. H. The director of the department of transportation, in consultation with the director of the department of insurance and financial institutions, may establish procedures that allow a person to apply for and file a certificate of either partial self-insurance or self-insurance. I. The director of the department of transportation, in consultation with the director of the department of insurance and financial institutions, shall establish procedures to exchange information regarding changes in the self-insurance status of persons who are subject to this section. 28-4008. Assigned risk plans A. After consultation with insurance companies authorized to issue motor vehicle liability policies in this state, the director of the department of insurance and financial institutions shall approve a reasonable plan for the equitable apportionment among the companies of applicants for policies and for motor vehicle liability policies who are in good faith entitled to but are unable to procure the policies through ordinary methods. B. After a plan has been approved, all insurance companies authorized to issue motor vehicle liability policies in this state shall subscribe to and participate in the plan. C. An applicant for a policy under this section, a person insured under an assigned risk plan and an insurance company affected may appeal to the director of the department of insurance and financial institutions from any ruling or decision of the manager or committee designated to operate the plan. Within ten days after notice of an order or act of the director of the department of insurance and financial institutions, a person aggrieved under this section by the order or act may file a petition in the superior court in the county in which the director of the department of insurance and financial institutions is domiciled against the director of the department of insurance and financial institutions for a review of the order or act. The court shall summarily hear the petition and may make any appropriate order or decree. 28-4009. Motor vehicle liability policy requirements A. An owner's motor vehicle liability policy shall comply with the following: 1. The policy shall designate by explicit description or by appropriate reference all motor vehicles for which coverage is granted. If coverage is provided for a fleet of seven or more motor vehicles, the maximum payable for any one accident is the limit of liability stated in the policy. There is no accumulation of coverage for each separate vehicle covered. 2. The policy shall insure the person named in the policy as the insured and any other person, as insured, using the motor vehicle or motor vehicles with the express or implied permission of the named insured against loss from the liability imposed by law for damages arising out of the ownership, maintenance or use of the motor vehicle or motor vehicles within the United States or the Dominion of Canada, subject to limits exclusive of interest and costs, for each motor vehicle as follows: (a) For a policy that is issued or renewed on or before June 30, 2020 or for a policy that is issued to a person that has a valid certificate of self-insurance or partial self-insurance pursuant to section 28-4007: (i) $15,000 because of bodily injury to or death of one person in any one accident. (ii) Subject to the limit for one person, $30,000 because of bodily injury to or death of two or more persons in any one accident. (iii) $10,000 because of injury to or destruction of property of others in any one accident. (b) For a policy that is issued or renewed beginning on July 1, 2020, except for a policy that is issued to a person that has a valid certificate of self-insurance or partial self-insurance pursuant to section 28-4007: (i) $25,000 because of bodily injury to or death of one person in any one accident. (ii) Subject to the limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident. (iii) $15,000 because of injury to or destruction of property of others in any one accident. 3. By agreement in writing between a named insured and the insurer the policy may exclude as insured a person or persons designated by name when operating a motor vehicle. The written agreement between the named insured and insurer is effective for each renewal of the policy by the insurer and remains in effect until the insurer agrees in writing to provide coverage for the person or persons who were previously excluded from coverage. B. An operator's motor vehicle liability policy shall insure the person named as insured in the policy against loss from the liability imposed on the person by law for damages arising out of the use by the person of a motor vehicle not owned by the person, within the same territorial limits and subject to the same limits of liability provided in subsection A of this section for an owner's motor vehicle liability policy. C. A motor vehicle liability policy: 1. Shall state the name and address of the named insured, the coverage afforded by the policy, the premium charged for the policy, the complete vehicle identification number of all vehicles covered by the policy, the policy period and the limits of liability. 2. Shall contain an agreement or be endorsed that insurance is provided under the policy in accordance with the coverage defined in this chapter for bodily injury and death or property damage, or both. 3. Is subject to all of the provisions of this chapter. 4. Is not required to insure liability either: (a) Under any workers' compensation law. (b) On account of bodily injury to or death of an employee of the insured while engaged in the employment, other than domestic, of the insured or while engaged in the operation, maintenance or repair of the motor vehicle. (c) For damage to property owned by, rented to, in charge of or transported by the insured. (d) For damage to property or bodily injury caused intentionally by or at the direction of the insured. (e) For a private passenger motor vehicle used while a transportation network company driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services unless expressly authorized by the terms of the motor vehicle liability insurance policy or an endorsement or amendment to the policy. 5. Is subject to the following provisions that are not required to be in the policy: (a) The liability of the insurance carrier with respect to the insurance required by this chapter becomes absolute when injury or damage covered by the motor vehicle liability policy occurs. The policy may not be cancelled or annulled as to that liability by an agreement between the insurance carrier and the insured after the occurrence of the injury or damage, and a statement made by the insured or someone on the insured's behalf or a violation of the policy shall not defeat or void the policy. (b) The satisfaction by the insured of a judgment for the injury or damage is not a condition precedent to the right or duty of the insurance carrier to make payment on account of the injury or damage. (c) The insurance carrier may settle any claim covered by the policy, and if the settlement is made in good faith, the amount of the claim is deductible from the limits of liability specified in subsection A, paragraph 2 of this section. (d) The policy, the written application for the policy, if any, and any rider or endorsement that does not conflict with this chapter constitute the entire contract between the parties. 6. May provide that the insured shall reimburse the insurance carrier for any payment the insurance carrier would not have been obligated to make under the terms of the policy except for this chapter. 7. May provide for the prorating of the insurance under the policy with other valid and collectible insurance. D. A policy that grants the coverage required for a motor vehicle liability policy may also grant lawful coverage in excess of or in addition to the coverage specified for a motor vehicle liability policy, and the excess or additional coverage is not subject to this chapter. With respect to a policy that grants the excess or additional coverage, the term "motor vehicle liability policy" applies only to that part of the coverage that is required by this section. E. The requirements for a motor vehicle liability policy may be fulfilled by the policies of one or more insurance carriers that together meet the requirements. F. A binder issued pending the issuance of a motor vehicle liability policy fulfills the requirements for the policy. 28-4010. Motor vehicle liability policy; primary and excess coverage A. If two or more policies affording valid and collectible motor vehicle liability insurance apply to the same motor vehicle that is involved in an occurrence out of which a liability loss arises and one of the policies affords coverage to a named insured engaged in the business of selling, repairing, servicing, delivering, testing, road testing, parking or storing motor vehicles, both of the following are conclusively presumed: 1. If at the time of loss the motor vehicle is being operated by a person engaged in one of the businesses or by the person's employee or agent, the insurance afforded by the policy issued to the person engaged in the business is primary and the insurance afforded by any other policy is excess. 2. If at the time of loss the motor vehicle is being operated by a person other than a person described in this subsection, the insurance afforded by the policy issued to a person engaged in a business described in this subsection is excess over all other insurance available to the operator as a named insured or otherwise. B. Except as provided in subsection A, if two or more policies affording valid and collectible liability insurance apply to the same motor vehicle that is involved in an occurrence out of which a liability loss arises, it is conclusively presumed that the insurance afforded by that policy in which the motor vehicle is described or rated as an owned automobile is primary and the insurance afforded by any other policy or policies is excess. C. The presumptions stated in subsection A may be modified or amended only by a written agreement signed by all insurers who have issued a policy or policies applicable to a loss described in subsection A and all named insureds under these policies. 28-4011. Bonds; motor carriers; amount; failure of security A. A self-insurer or partial self-insurer shall file a bond with the director on a form approved by the director with a surety company authorized by the corporation commission to transact business in this state as surety on the bond. The self-insurer or partial self-insurer shall be the principal obligor and this state shall be the obligee on the bond. The bond shall be conditioned on the compliance by the self-insurer or partial self-insurer with laws governing motor carriers. B. The director shall fix the total amount of the bond required of a self-insurer or partial self-insurer and may increase or reduce the amount at any time, subject to the limitations provided in this section. The bond required of a self-insurer or partial self-insurer shall be at least two hundred fifty thousand dollars. C. A self-insurer or partial self-insurer may request in writing that the director reduce a bond required pursuant to this section. The director may reduce a bond if the director determines that the self-insurer or partial self-insurer has continuously complied with this article and the self-insurer or partial self-insurer has not incurred claims for accidents involving motor vehicles for at least the previous three consecutive years. If the director determines that the reduction of the bond would jeopardize public safety, the director may elect to retain the bond or may increase the bond amount required. A person who is aggrieved by a decision of the director pursuant to this subsection may appeal the decision by requesting a hearing. D. If liability on the bond filed by the self-insurer or partial self-insurer with the director is discharged or reduced or if in the opinion of the director a surety on the bond given has become unsatisfactory or unacceptable, the director may require the self-insurer or partial self-insurer to file a new bond with satisfactory sureties in the same amount. If the self-insurer or partial self-insurer fails to file a new bond as required, the director shall cancel the person's certificate of self-insurance or partial self-insurance immediately. If a new bond is furnished by the self-insurer or partial self-insurer, the director shall cancel and surrender the bond for which the new bond is substituted. E. If the director decides that the amount of the existing bond is insufficient to ensure the safety of the public and the director gives the self-insurer or partial self-insurer five days written notice mailed to the self-insurer's or partial self-insurer’s last known address, on the written demand of the director, the self-insurer or partial self-insurer shall immediately file an additional bond in the same manner and form with a surety company on the bond approved by the director in an amount determined by the director as necessary to protect public safety at all times. If the self-insurer or partial self-insurer fails to file an additional bond as required, the director shall immediately cancel the certificate of self-insurance or partial self-insurance of the person. F. A surety on a bond furnished by a self-insurer or partial self-insurer shall be released and discharged from all liability to this state accruing on the bond on the last day of the month that includes the sixtieth day after the date on which the surety files with the director a written request to be released and discharged. The request does not relieve, release or discharge the surety from liability already accrued or from liability that accrues before the last day of the month that includes the end of the sixty day period. On receipt of notice of the request, the director shall promptly notify the self-insurer or partial self-insurer who furnished the bond and shall immediately cancel the certificate of self-insurance or partial self-insurance of the person, unless the self-insurer or partial self-insurer, on or before the last day of the month that includes the end of the sixty day period, files with the director a new bond with a surety company satisfactory to the director in the amount and form provided in this section. If a new bond is furnished by the self-insurer or partial self-insurer, the director shall cancel and surrender the bond for which the new bond is substituted. 28-4031. Definitions In this article, unless the context otherwise requires: 1. "Declared gross weight" has the meaning prescribed in section 28-5431. If a declaration has not been made, declared gross weight means gross weight. 2. "Gross weight" has the meaning prescribed in section 28-5431. 3. "Person" means: (a) An owner or operator of a motor vehicle or vehicle combination subject to the financial responsibility requirements of this article. (b) For taxis, limousines, sedans or executive sedans, the person listed on the department’s records as the owner of the vehicle. 4. "Public highway" means any way or place of whatever nature and of any kind that is used or open to the use by the public as a matter of right for the purpose of vehicular travel, including a highway under construction. 5. "Vehicle combination" has the meaning prescribed in section 28-5431. 28-4032. Persons subject to financial responsibility requirements A. Notwithstanding any other statute: 1. A person who operates in the furtherance of a commercial enterprise in this state a motor vehicle or vehicle combination that has a declared gross weight of more than twenty thousand pounds shall comply with the financial responsibility requirements of this article and article 4 of this chapter. 2. A person who operates a motor vehicle or vehicle combination for the purpose of transporting hazardous materials, hazardous substances or hazardous wastes as defined by the department shall comply with the financial responsibility requirements of this article and article 4 of this chapter unless any of the following applies: (a) The transportation of hazardous materials, hazardous substances or hazardous wastes is incidental to the principal purpose of the vehicular travel at the time the transportation occurs. (b) The transportation of hazardous materials, hazardous substances or hazardous wastes is not in the furtherance of a commercial enterprise. (c) The transportation of an amount of hazardous material listed in 49 Code of Federal Regulations section 172.504(a) table two is less than one thousand pounds or not more than one hundred ten gallons for a combustible liquid. B. A person who operates a bus used to transport passengers for hire, other than a car pool operator, shall comply with the financial responsibility requirements of this article and article 4 of this chapter. This subsection does not apply to a car pool operator. For the purposes of this subsection, "car pool operator" means a natural person when engaged either regularly or occasionally in carrying one or more other persons by motor vehicle on a public highway, with or without compensation, if the carriage of the other person or persons is both: 1. Not for profit. A car pool operator is conclusively presumed not to be carrying persons for profit if either: (a) The operator receives compensation of not more than twenty cents per mile for total vehicle miles traveled, except that the proportionate share of the car pool operator shall be included in the amount. (b) The operator carries one or more of the operator's passengers in consideration of the operator being carried in like situations by the passenger or passengers. The receipt of compensation of more than twenty cents per mile for total vehicle miles traveled does not preclude a car pool operator from showing that this compensation does not result in a profit to the operator or that the operator did not intend that a profit result. 2. Incidental to another purpose of the car pool operator. Except in unusual circumstances, the carriage is incidental to another purpose of the operator if the operator is not making the trip solely for the purpose of carrying a passenger. A car pool operator is conclusively presumed not to be transporting passengers for hire. C. A person who is listed on the department's records as the owner of a taxi, livery vehicle or limousine used to transport passengers for hire shall comply with the financial responsibility requirements of this article and article 4 of this chapter. 28-4033. Financial responsibility requirements A. A person that is subject to the requirements of this article shall maintain motor vehicle combined single limit liability insurance as follows: 1. For the transportation of nonhazardous property: (a) For a vehicle with a gross vehicle weight of more than twenty-six thousand pounds, minimum coverage in the amount of seven hundred fifty thousand dollars. (b) For a vehicle with a gross vehicle weight of twenty thousand one pounds to twenty-six thousand pounds, minimum coverage in the amount of three hundred thousand dollars. 2. For the transportation of passengers: (a) In a vehicle with a seating capacity of sixteen passengers or more, minimum coverage in the amount of five million dollars and uninsured motorist coverage in the amount of at least three hundred thousand dollars. (b) In a vehicle with a seating capacity of less than sixteen passengers including the driver, but more than eight passengers including the driver, minimum coverage in the amount of seven hundred fifty thousand dollars and uninsured motorist coverage in the amount of at least three hundred thousand dollars. (c) In a vehicle with a seating capacity of not more than eight passengers including the driver, a policy containing one of the following: (i) Minimum coverage in the amount of two hundred fifty thousand dollars and uninsured motorist coverage in the amount of at least two hundred fifty thousand dollars issued by an insurer that holds a valid certificate of authority or that is permitted to transact surplus lines insurance in this state. (ii) Minimum coverage as prescribed by section 28-4038 or 28-4039, as applicable. 3. For the transportation of hazardous materials, hazardous substances or hazardous wastes: (a) Minimum coverage in the amount of five million dollars for the transportation of: (i) Hazardous substances, as defined in 49 Code of Federal Regulations part 171, transported in a cargo tank, portable tank or hopper-type vehicle with capacities in excess of three thousand five hundred water gallons. (ii) Any quantity of class A or B explosives. (iii) Any quantity of poison gas (poison A). (iv) Liquefied compressed gas or compressed gas transported in a cargo tank, portable tank or hopper-type vehicle with capacities in excess of three thousand five hundred water gallons. (v) The quantity of radioactive materials that requires specialized handling and transportation controls as indicated in 49 Code of Federal Regulations part 173. (b) Minimum coverage in the amount of one million dollars for the transportation of the following: (i) Any quantity of oil listed in 49 Code of Federal Regulations part 172. (ii) Any quantity of hazardous wastes, hazardous materials or hazardous substances as defined and listed in 49 Code of Federal Regulations part 171 and in 49 Code of Federal Regulations part 172 but not included in subdivision (a) of this paragraph. B. If a motor vehicle is leased or rented, the lessor shall ensure that the lessee is covered under the lessor's liability insurance as provided by this section or the lessor shall require that the lessee meet the financial responsibility requirements of this section. In the case of taxis, livery vehicles or limousines, a person who is listed on the department's records as the owner shall comply with the financial responsibility requirements of this article and article 4 of this chapter. C. If a lessee uses the motor vehicle for a purpose that is required under this section to have a higher amount of financial responsibility than was required of the lessor or renter, the lessee shall maintain the higher financial responsibility requirements of this section. D. The uninsured motorist coverage required by this section is not required until June 1, 1987 and may be provided by a self-insurance program authorized under section 28-4007. A person who is under contract with this state or a political subdivision of this state, who operates a motor vehicle owned by this state or a political subdivision of this state and who is included in the self-insurance program of this state or a political subdivision of this state is exempt from the uninsured motorist requirements of this section. 28-4034. Maintenance, certification and verification of financial requirements A. A person who operates a motor vehicle in this state and who is subject to the financial responsibility requirements of this article shall maintain at all times the amounts prescribed in section 28-4033 that obligates the person to pay compensation for injuries to persons and for loss or damage to property by reason of the ownership, maintenance or use of a motor vehicle or vehicle combination owned or operated by the person. B. The department may require a person who is subject to the financial responsibility requirements of this article to certify the existence of financial responsibility in the form and at the times the department deems necessary. The department may forward the certification to the named insurer to determine if the certification is correct. Civil liability does not accrue to the insurer or any of its employees for reports made to the department if the reports are made in good faith based on the most recent information available to the insurer. 28-4036. Violation; classification A person who is subject to the financial responsibility requirements of this article and who operates or causes to be operated a vehicle in this state without meeting the financial responsibility requirements of this article is guilty of: 1. A class 3 misdemeanor. 2. A class 1 misdemeanor if the vehicle is involved in an accident in this state. 28-4037. Foreign vehicles; exception A. Before a vehicle owner or lessor operates in this state a vehicle that is subject to sections 28-2321 through 28-2324 and that has primary registration and license plates issued by a foreign country or jurisdiction of a foreign country with which this state does not have motor vehicle registration reciprocity or an agreement for proportional registration, the owner or lessor shall submit to the department proof of financial responsibility for the future pursuant to this article that provides valid insurance coverage in this state and that is issued by an insurer that has been issued a certificate of authority or that has been permitted to transact surplus lines insurance by the public official that supervises insurance in a state of the United States or the District of Columbia. B. The department may refuse to issue the registration for a vehicle or may cancel the registration of a vehicle owned or operated by a person who does not comply with this section. C. This section does not apply to a vehicle registered pursuant to section 28-2325. 28-4038. Transportation network services; financial responsibility requirements; survey A. For a transportation network company that requires a transportation network company driver to accept rides that are booked and paid for exclusively through the transportation network company's digital network or software application and during the time in which the transportation network company driver is logged in to the transportation network company's digital network or software application to be a driver, but is not in the act of providing transportation network services, the transportation network company driver or the transportation network company, or both, shall provide primary motor vehicle liability insurance coverage in the amount of $25,000 because of bodily injury to or death of one person in any one accident, subject to the limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident and $20,000 because of injury to or destruction of property of others in any one accident. Coverage shall be maintained through any of the following: 1. A private passenger motor vehicle policy maintained by the transportation network company driver that expressly provides liability coverage while the driver is logged in to the transportation network company's digital network or software application to be a driver. 2. A motor vehicle liability policy maintained by the transportation network company. 3. A commercial motor vehicle liability policy. B. For a transportation network company that requires a transportation network company driver to accept rides that are booked and paid for exclusively through the transportation network company's digital network or software application and during the time in which the transportation network company driver is providing transportation network services, the transportation network company driver or the transportation network company, or both, shall maintain the following insurance coverages: 1. Primary commercial motor vehicle liability insurance that covers the transportation network company driver's provision of transportation network services in a minimum amount of $250,000 per incident, except that the minimum amount shall be $1,000,000 per incident when a passenger to whom the transportation network company driver is providing transportation network services is occupying the transportation network company vehicle. 2. Primary commercial uninsured motorist coverage in a minimum amount of either of the following, whichever is greater: (a) $25,000 per person and $75,000 per incident. (b) The minimum liability limits for bodily injury or death prescribed in section 28-4009. C. Unless an insurance policy expressly provides coverage or contains an amendment or endorsement that expressly provides coverage, the transportation network company driver's insurance policy and the motor vehicle owner's personal motor vehicle insurance policy shall not be required to provide coverage for the transportation network company vehicle, the transportation network company driver, the motor vehicle owner or any third party while a transportation network company driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services. D. Notwithstanding subsection C of this section, an insurer may offer, for the period during which a transportation network company driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services, one of the following: 1. A motor vehicle liability insurance policy expressly providing such coverage. 2. An amendment or endorsement to an existing motor vehicle liability insurance policy specifically providing such coverage. E. An insurance policy required by this section is deemed to satisfy the financial responsibility requirements for a motor vehicle insurance policy under this title. F. A transportation network company driver shall carry proof of insurance in the transportation network company vehicle at all times while logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services. If an accident occurs involving a transportation network company vehicle, the transportation network company driver shall provide proof of insurance to the parties involved in the accident at the time of the accident. The transportation network company driver shall also notify the transportation network company of the accident. G. In a claims coverage investigation, transportation network companies and any insurer providing coverage as prescribed in this section shall fully cooperate in the exchange of information, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network or software application in the twenty-four-hour period immediately preceding the accident, and shall disclose to each other a clear description of the coverage, exclusions and limits provided under any insurance policy each party issued or maintained. H. This section and section 28-4009 do not create an obligation for an insurer that issues coverage to which section 20-1631 applies to offer, provide or issue a motor vehicle liability insurance policy or an endorsement or amendment that includes coverage for any liability arising while a transportation network company driver is logged in to the transportation network company's digital network or software application to be a driver or is providing transportation network services. I. An insurance policy required by this section may be placed with an insurer authorized to transact insurance in this state pursuant to title 20, chapter 2, article 1 or a surplus lines insurer pursuant to title 20, chapter 2, article 5. J. The department of insurance and financial institutions, as part of its annual survey of insurance companies, may request information from any property and casualty insurer authorized to write private passenger motor vehicle coverage in this state, including information regarding: 1. Whether the insurer offers for purchase a policy or an endorsement or amendment that covers transportation network company drivers while the driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services. 2. The number of those policies, endorsements or amendments that have been purchased during the reporting period. 3. The number of those policies, endorsements or amendments that have been canceled during the reporting period. 28-4039. Taxi, livery vehicle or limousine; financial responsibility A. Motor vehicle liability insurance for a taxi, livery vehicle or limousine may be maintained as follows: 1. During the time in which the taxi, livery vehicle or limousine driver is available to provide passenger transportation, but has not accepted a ride request and is not in the act of providing passenger transportation, primary commercial motor vehicle liability insurance coverage in the amount of $25,000 because of bodily injury to or death of any one person in any one accident, subject to the limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident and $20,000 because of injury to or destruction of property of others in any one accident. This policy may be maintained by either the driver or the company. 2. After the taxi, livery vehicle or limousine driver has accepted a ride request through any communication and during the time in which the taxi, livery vehicle or limousine driver is providing passenger transportation, the taxi, livery vehicle or limousine driver or the taxi, livery vehicle or limousine company shall maintain the following insurance coverage: (a) Primary commercial motor vehicle liability insurance in a minimum amount of $250,000 per incident. (b) Primary commercial uninsured motorist coverage in a minimum amount of either of the following, whichever is greater: (i) $25,000 per person and $75,000 per incident. (ii) The minimum liability amounts for bodily injury or death prescribed in section 28-4009. B. A taxi, livery vehicle or limousine driver shall carry proof of insurance in the vehicle at all times while providing transportation services. If an accident occurs involving a taxi, livery vehicle or limousine, the taxi, livery vehicle or limousine driver shall provide proof of insurance to the parties involved in the accident at the time of the accident. The taxi, livery vehicle or limousine driver shall also notify the taxi, livery vehicle or limousine company of the accident. C. In a claims coverage investigation, a taxi, livery vehicle or limousine company and any insurer providing coverage as prescribed in this section shall fully cooperate in the exchange of information and shall disclose to each other a clear description of the coverage, exclusions and limits provided under any insurance policy that each party issued or maintained. 28-4071. Nonpayment of judgments; report A. If a person fails to satisfy a judgment within sixty days, on written request of the judgment creditor or the judgment creditor's legal representative, the clerk of the court, or the judge of a court that has no clerk, in which the judgment is rendered shall forward a certified copy of the judgment to the director immediately after the expiration of the sixty days. B. If the defendant who is named in a certified copy of a judgment reported to the director is a nonresident, the director shall transmit a certified copy of the judgment to the official in charge of the issuance of licenses and registration certificates of the state of which the defendant is a resident. 28-4072. Nonpayment of judgments; suspension; exceptions A. On receipt of a certified copy of a judgment, the director shall immediately suspend the license and registration and nonresident operating privilege of a person against whom the judgment was rendered, except as otherwise provided in this section and section 28-4075. B. If the judgment creditor consents in writing on a form prescribed by the director that the judgment debtor be allowed the license and registration or the nonresident operating privilege and if the judgment debtor furnishes proof of financial responsibility, the director may allow the privileges from the date of the consent and thereafter until the consent is revoked in writing, notwithstanding default in the payment of the judgment or of any installments prescribed in section 28-4075. C. A person whose license, registration or nonresident operating privilege has been or is about to be suspended or shall become subject to suspension under this article may be relieved from the effect of the judgment as prescribed in this article by filing with the director all of the following: 1. An affidavit stating that at the time of the accident on which the judgment was rendered the affiant was insured, that the insurer is liable to pay the judgment and the reason, if known, why the insurance company has not paid the judgment. 2. The original or a certified copy of the policy of insurance, if available. 3. Other documents required by the director to show that the loss, injury or damage for which the judgment was rendered was covered by the policy of insurance. D. If the director is satisfied from the papers filed pursuant to subsection C of this section that the insurer was authorized to issue the policy of insurance at the time and place of issuing the policy and that the insurer is liable to pay the judgment, at least to the extent and for the amounts required in this chapter, the director: 1. Shall not suspend the license, registration or nonresident operating privilege. 2. If the license, registration or nonresident operating privilege is already suspended, shall reinstate the license, registration or nonresident operating privilege. 28-4073. Suspension length; reinstatement; designated fund A. The license, registration and nonresident operating privilege shall remain suspended and the director shall not renew or issue a license or registration in the name of the person, including a person not previously licensed, until each judgment is satisfied in full or to the extent provided by this chapter or unless the judgment creditor failed to renew the judgment as provided in title 12, chapter 9, article 6 or the judgment is otherwise legally unenforceable and the person gives proof of financial responsibility subject to the exemptions stated in sections 28-4072 and 28-4075. If the judgment creditor fails to renew the judgment, the director shall consider the judgment satisfied beginning on the date of its expiration. B. On receipt of an affidavit executed by a judgment debtor stating that a diligent search to locate the judgment creditor has been made and reciting with particularity the steps taken and that the judgment creditor or the successor in interest could not be found for the purpose of receiving payment of the judgment and on payment of the amount of the judgment to the department in a fund designated for that purpose, the director may reinstate the license, registration and nonresident operating privilege of the judgment debtor. The director shall hold the monies in trust for the purpose of satisfying the judgment. Monies deposited in the fund revert to the state general fund five years from the date of the deposit if not claimed by the judgment creditor. C. Notwithstanding section 28-4088, a person whose license, registration or nonresident operating privilege is reinstated shall maintain proof of financial responsibility for two years after the judgment is satisfied. 28-4074. Payments; satisfaction of judgments A. For the purpose of this chapter only, a judgment referred to in this article is deemed satisfied on compliance with one of the following: 1. When payment sufficient to satisfy the limits prescribed in section 28-4009 is made. 2. If higher limits are required pursuant to section 28-4033, when payment sufficient to satisfy those limits is made. B. Payments made in settlements of claims because of bodily injury, death or property damage arising from a motor vehicle accident shall be credited in reduction of the amounts provided for in this section. 28-4075. Installment payment of judgments; default A. On due notice to the judgment creditor, a judgment debtor may apply to the court in which the judgment was rendered for the privilege of paying the judgment in installments, and the court may order and fix the amounts and times of payment of the installments without prejudice to any other legal remedy that the judgment creditor may have. B. The director shall not suspend a license, registration or nonresident operating privilege and shall restore a license, registration or nonresident operating privilege suspended after nonpayment of a judgment if the judgment debtor gives proof of financial responsibility and obtains an order permitting the payment of the judgment in installments and while the payment of an installment is not in default. C. If the judgment debtor fails to pay an installment as specified by the order, on notice of the default the director shall immediately suspend the license, registration or nonresident operating privilege of the judgment debtor until the judgment is satisfied as provided in this chapter. 28-4076. Alternate methods of proof If required by this chapter, a person may give proof of financial responsibility by filing one of the following: 1. A certificate of insurance pursuant to section 28-4077 or 28-4078. 2. Certificates of deposit or cash pursuant to section 28-4084. 28-4077. Certificate of insurance A. A person may give proof of financial responsibility by filing with the director the written certificate of an insurance carrier duly authorized to do business in this state certifying that there is in effect a motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility. The certificate shall: 1. Be in a form and shall contain the information prescribed by the director. 2. Designate by explicit description or by appropriate reference all motor vehicles covered by the certificate, unless the policy is issued to a person who is not the owner of a motor vehicle. B. A motor vehicle shall not be or shall not continue to be registered in the name of a person required to file proof of financial responsibility unless the motor vehicle is designated in the certificate. 28-4078. Certificate by nonresident A. A nonresident owner of a motor vehicle that is not registered in this state may give proof of financial responsibility by filing with the director a written certificate of an insurance carrier authorized to transact business in the state in which the motor vehicle described in the certificate is registered, or if the nonresident does not own a motor vehicle, in the state in which the insured resides, if the certificate otherwise conforms with this chapter. The director shall accept the certificate on the condition that the insurance carrier complies with the following provisions with respect to the policies certified: 1. The insurance carrier shall execute a power of attorney authorizing the director to accept service on its behalf of notice or process in an action arising out of a motor vehicle accident in this state. 2. The insurance carrier shall agree in writing that the policies shall be deemed to conform with the laws of this state relating to the terms of motor vehicle liability policies issued in this state. B. If an insurance carrier that is not authorized to transact business in this state and that is qualified to furnish proof of financial responsibility defaults in any such undertaking or agreement, the director shall not accept a certificate of the carrier as proof whether filed before the default or tendered as proof after the default, as long as the default continues. 28-4081. Notice; cancellation or termination of policy If an insurance carrier has certified a motor vehicle liability policy under section 28-4077 or 28-4078, the insurance carrier shall not cancel or terminate the certified insurance until at least ten days after the insurance carrier files a notice of cancellation or termination of the insurance with the director, except that a policy subsequently procured and certified terminates, on the effective date of its certification, the insurance previously certified with respect to a motor vehicle designated in both certificates. 28-4082. Applicability to other policies A. This chapter does not apply to or affect policies of motor vehicle insurance against liability that are required by any other law of this state, and if these policies contain an agreement or are endorsed to conform with the requirements of this chapter, they may be certified as proof of financial responsibility under this chapter. B. This chapter does not apply to or affect policies insuring only the insured named in the policy against liability resulting from the maintenance or use by persons in the insured's employ or on the insured's behalf of motor vehicles not owned by the insured. 28-4084. Monies or certificates of deposit as proof; exception A. The state treasurer may issue a certificate that gives evidence of proof of financial responsibility that the person named in the certificate has deposited with the state treasurer forty thousand dollars in cash or certificates of deposit with a value of forty thousand dollars issued by a financial institution. B. The state treasurer shall not accept the deposit and issue a certificate for and the director shall not accept the certificate unless the depositor provides evidence that there are no unsatisfied judgments of any kind against the depositor in the county where the depositor resides. C. The state treasurer shall hold the deposit to satisfy, in accordance with this chapter, an execution on a judgment issued against the person making the deposit for damages, including damages for care and loss of services, because of bodily injury to or death of a person or for damages because of injury to or destruction of property, including the loss of use of the property, resulting from the ownership, maintenance, use or operation of a motor vehicle after the deposit is made. D. Monies or certificates of deposit deposited pursuant to this section are not subject to attachment or execution unless the attachment or execution arises out of a suit for damages described in subsection C. E. Deposits of cash or certificates of deposit under this section do not satisfy the financial responsibility requirements prescribed in article 2 of this chapter. 28-4085. Proof by owner for others If a person required to give proof of financial responsibility under this chapter is or later becomes either an operator in the employ of an owner or a member of the immediate family or household of an owner, the director shall accept proof given by the owner in lieu of proof by the other person to permit the other person to operate a motor vehicle for which the owner has given proof as provided by this chapter. 28-4086. Substitution of proof The director shall consent to the cancellation of a certificate of insurance or shall direct and the state treasurer shall return any monies or certificates of deposit to the person entitled to the monies or certificates of deposit on the substitution and acceptance of other adequate proof of financial responsibility pursuant to this chapter. 28-4087. Requirement of other proof If proof of financial responsibility filed under this chapter no longer fulfills the purposes for which the proof is required, the director shall both: 1. Require for the purpose of this chapter other proof as required by this chapter. 2. Suspend the license and registration or the nonresident operating privilege pending the filing of other proof. 28-4088. Duration, cancellation and return of proof A. On request, the director shall either: 1. Consent to the immediate cancellation of a certificate of insurance. 2. Direct and the state treasurer shall return to the person who is entitled monies or certificates of deposit deposited pursuant to this chapter as proof of financial responsibility. 3. Waive the requirement of filing proof under any of the following circumstances: (a) At any time after three years from the date the proof was required. (b) The death of the person on whose behalf the proof was filed or the permanent incapacity of the person to operate a motor vehicle. (c) If the person who has given proof surrenders the person's license and registration to the director. B. The director shall not consent to the return of monies or certificates of deposit if an action for damages on a liability covered by the proof is pending, if a judgment on that liability is unsatisfied or if the person who has deposited the monies or certificates of deposit has been involved as an operator or owner in a motor vehicle accident resulting in injury or damage to the person or property of others within one year immediately preceding the request. An affidavit of the applicant stating that these facts do not exist, that the applicant has been released from all of the applicant's liability or that the applicant has been finally adjudicated not liable for the injury or damage is sufficient evidence in the absence of evidence to the contrary in the records of the director. C. If a person whose proof has been returned under subsection A, paragraph 3, subdivision (c) applies for a license or registration within three years from the date proof was originally required, the director shall refuse the application unless the applicant reestablishes the proof for the remainder of the three year period. 28-4131. Definition of evidence In this article, unless the context otherwise requires, "evidence" includes: 1. An original, a photocopy or a copy of a current and valid: (a) Motor vehicle or automobile liability policy that meets the requirements of section 28-4009. (b) Binder or certificate of motor vehicle or automobile liability insurance that meets the requirements of section 28-4009. (c) Certificate of self-insurance issued by the department under article 1 of this chapter. (d) Certificate of deposit that meets the requirements of section 28-4084. (e) Motor vehicle insurance identification card issued by an authorized insurer or an authorized agent of the insurer for a motor vehicle or automobile liability policy that meets the requirements of section 28-4009. (f) Certificate of insurance for a policy that meets the requirements of section 28-4033. 2. Designation of a motor vehicle as owned or leased by this state or any of its political subdivisions according to section 38-538. 3. A display on a wireless communication device of any item listed in paragraph 1 of this section. 28-4132. Financial responsibility requirement exemptions This article does not apply to the owner or operator of any: 1. Farm tractor. 2. Trailer used solely in the operation of a farm for transporting the unprocessed fiber or forage products of a farm or an implement of husbandry designed primarily for or used in agricultural operations and only incidentally operated or moved on a highway. 3. Road-roller or road machinery, including a power sweeper, temporarily operating or moved on the highway. 4. Trailer not used for commercial purposes or semitrailer not used for commercial purposes. 5. Motor vehicle rented without a driver that meets the requirements of section 28-2166. 6. Motor vehicle registered pursuant to section 28-2154. 7. Motor vehicle owned by the United States government. 8. Golf cart used in the operation of a golf course or only incidentally operated or moved on a highway. 9. All-terrain vehicle or off-road recreational motor vehicle operating on a dirt road that is located in an unincorporated area of this state. For the purposes of this paragraph, "dirt road" means an unpaved or ungraveled road that is not maintained by this state or a city, town or county of this state. 10. Off-highway vehicle participating in an off-highway vehicle special event as defined in section 28-1171. 28-4133. Insurance identification cards; documentary evidence; exception A. An authorized insurer shall issue at least two motor vehicle insurance identification cards for a motor vehicle or automobile liability policy that meets the requirements of section 28-4009 or section 28-4033, subsection A, paragraph 2, subdivision (c