5.1-9.5 - Contract carriers; bonds, insurance or certificate of insurance required prior to issuance of license or permit; securities deposited in lieu thereof. - Virginia Statutes

§ 5.1-9.5. Contract carriers; bonds, insurance or certificate of insurancerequired prior to issuance of license or permit; securities deposited in lieuthereof.

A. No license or permit shall be issued by the Department to any contractcarrier by aircraft until and after such contract carrier has filed with theDepartment an insurance policy, a bond underwritten by an insurer, orcertificate of insurance in lieu thereof, which certificate shall certifythat such policy or bond covers the liability of such contract carrier inaccordance with the provisions of this statute.

B. Such policy, bond or certificate of insurance shall be issued orunderwritten only by an insurer approved or authorized to do business inVirginia, or by one who is eligible as a surplus lines insurer pursuant toChapter 48 (§ 38.2-4800 et seq.) of Title 38.2, and shall be in amounts notless than the following minimum limits: liability for bodily injury to ordeath of any one person, passenger or other, aboard the aircraft; $75,000,liability for each occurrence in any one aircraft of at least an amount equalto the sum produced by multiplying $75,000 by seventy-five percent of thetotal number of passenger seats installed in the aircraft; and liability forloss or damage to cargo owned by others than the insured of at least $10,000for each occurrence. However, the holder of a license or permit issued by theDepartment shall not be required to file any cargo insurance, bond, or bondsfor cargo liability for the hauling of property transported under contract.

C. In no event shall the limits required herein for contract carriers be lessthan those prescribed for like carriers by the Civil Aeronautics Board or theFederal Aviation Administration or their successors.

D. In lieu of such policy, underwritten bond or certificate of insurance, acontract carrier may, with the consent of the Department, submit bonds, in anamount approved by the Department, of the United States of America, theCommonwealth of Virginia, or of any municipality of this Commonwealth assecurity for its bond. Such federal, state, or municipal bonds shall bedeposited with the State Treasurer, and shall not be reduced in amount,pledged as security, or otherwise encumbered for any other purpose during thelife of such license or permit, except with the prior written approval of theDepartment.

(1980, c. 721.)