CHAPTER 773

An Act to amend the Code of Virginia by adding in Title 5.1 a chapter
numbered 7, containing sections numbered 5.1-77 through 5.1-81, re-
lating to proof of financial responsibility with reference to the
operation of aircraft.

[H 49]

Approved April 5, 1968

Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia be amended by adding in Title 5.1 a chapter
numbered 7, containing sections numbered 5.1-77 through 5.1-81, as follows:

CHAPTER 7.
Financial Responsibility

§ 5.1-77. No aircraft, as defined in § 5.1-1(c) of Article 1, Chap. 1
of this Title, except (1) a public aircraft, and (2) an aircraft used for
aerial application, (3) a parachute, and (4) a glider, shall be licensed by
the Commission unless and until the applicant therefor shall furnish proof
of financial responsibility in the amounts required by this Chapter for each
aircraft for which a license is applied for.
th 3 5.1-78. Proof of financial responsibility may be given by proof

at:

(a) A policy or policies of personal injury liability and property
damage insurance issued by an insurance company licensed to write such
insurance in this State, or a policy or policies written pursuant to Article
8.1 of Chapter 7 of Title 38.1 of the Code of Virginia, which provide
coverage with respect to each such aircraft, except gliders, in the amount of
fifty thousand dollars because of bodily injury to or death of one person
in any one accident, and one hundred thousand dollars because of bodily
injury to or death of two or more persons in any one accident and to a
limit of twenty-five thousand dollars 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 any one accident.

(b) A bond executed by the licensee and by a surety company author-
ized to transact business in this State, or by the person giving such proof
and by one or more individual sureties owning real estate in this State
and having an equity therein at least in the amount of the bond. Such
real estate shall be scheduled in such bond. The Commission may refuse
to accept any real estate bond unless it is approved by the judge of
the circuit court in the county or the corporation, hustings or other court
of record of the city where such real estate and each parcel thereof is
located. No bond shall be accepted unless it is conditioned for payment in
amounts and under the same circumstances as would be required in a
policy of personal injury liability and property damage liability insurance
furnished by the person giving proof of financial responsibility.

(c) By delivering to the Commission thirty-five thousand dollars in
cash or in securities such as fiduciaries may invest in as provided by
§§ 26-40 to 26-45 of the Code of Virginia. Such money or securities so
delivered to the Commission 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; or

(d) Furnishing a certificate of self-insurance issued by the Com-
mission.

The Commission shall not issue such certificate unless it is reason-
ably satisfied that the applicant therefor is possessed and will be con-
tinued to be possessed of financial responsibility to respond to a judgment
of fifty thousand dollars or more arising out of an aircraft accident be-
cause of injury to or destruction of property, including loss of its use,
or any final judgment for damages for care or loss of service, because of
bodily injury to or death of any person arising out of the ownership, use
or operation of any aircraft.

§ 5.1-79. No aircraft shall be licensed in this State for aerial appli-
cation, which means the dispensing or discharge from such aircraft of
any economic poison as defined by § 3.1-198, or any fertilizer, or any
other substance intended for plant nourishment, soil treatment, propa-
gation of plant life, or pest control unless the applicant therefor shall
furnish in the manner set forth in § 5.1-78 financial responsibility in the
amount of one hundred thousand dollars because of bodily injury to or
death of one person in any one accident and three hundred thousand
dollars because of bodily injury to or death of two or more persons in
any one accident and to a limit of twenty-five thousand dollars because
of iniury to or destruction of property of others in any one accident.

5.1-80. The provisions of §§ 46.1-451, 46.1-479, 46.1-480, 46.1-481,
46.1-482, 46.1-483, 46.1-484, 46.1-487, 46.1-488, 46.1-489, 46.1-492, and
46.1-496 shall apply to all policies of insurance or other evidence of finan-
cial responsibility furnished hereunder except that whenever the word
“Commissioner” appears in any of said sections it shall be taken to mean
the State Corporation Commission; and whenever the word “Division” or
“Division of Motor Vehicles” appears, it shall be taken to mean as well the
Division of Aeronautics.

§ 5.1-81. No policy of insurance or corporate surety bond issued pur-
suant to this Chapter may be cancelled or terminated until at least thirty
days after notice of cancellation or termination of said policy of insurance
or corporate surety bond has been filed in the office of the Division of Aero-
nautics of the Commission, except that a subsequent policy or corporate
surety bond procured and certified to the Commission shall on the effective
date thereof terminate the insurance or corporate surety bond previously
in effect with respect to any aircraft designated in both policies or corpo-
rate surety bonds.

§ 5.1-82. No parachute or glider shall be licensed in this State unless
the applicant therefor shall furnish in the manner set forth in § 5.1-78
financial responsibility in the amount of ten thousand dollars because of
bodily injury to or death to one person in any one accident and twenty
thousand dollars because of bodily injury or death of two or more persons
in any one accident and to a limit of five thousand dollars because of
injury to or destruction of property of others in any one accident.