Chap. 428.—An ACT to amend Section 12, as amended, of Chapter 129, of the
Acts of Assembly of 1936, approved March 9, 1936, relating to security to be
given as a condition to obtaining a permit to operate an automobile as a
common carrier. [H 384]

Approved April 1, 1948

Be it enacted by the General Assembly of Virginia:

1. That section twelve, as amended, of chapter one hundred twenty-
nine of the Acts of Assembly of nineteen hundred thirty-six, approved
March nine, nineteen hundred thirty-six, be amended and reenacted as
follows:

Section 12. (a) No certificate or permit shall be issued by the
Commission to any motor carrier until and after such motor carrier
shall have filed with, and the same has been approved by, the Commis-
sion, an insurance policy or bond, or certificate of insurance in lieu
thereof, certifying that such policy or bond covers the liability of said
motor carrier in accordance with the provisions of this section, issued
by some insurance company or association or other insurer authorized
to transact business in this State, or bonds to an amount approved by
the Commission of the State of Virginia, the United States of America,
or of any municipality in the State of Virginia, which State, Federal,
or municipal bonds shall be deposited with the Treasurer of the State
of Virginia, and such surety shall not be reduced during the life of such
certificate or permit, except in accordance with an order of the State
Corporation Commission.

(b) Each holder of a certificate or permit issued by the Commission
shall keep in force at all times insurance, bond or bonds, in an amount
required by the Commission; provided that the amount of the insurance
policy or bond required by the Commission under this section of any mo-
tor vehicle used in the transportation of property alone shall in no case
exceed the following: five thousand dollars for death or injury to any
one person; ten thousand dollars total public liability for any one acci-
dent; property damage, one thousand dollars; and cargo liability for
three tons and under, five hundred dollars, and, for more than three
tons, one thousand dollars; provided that a holder of a permit issued
by the Commission shall not be required to file any cargo insurance
bond or bonds for cargo liability.

(c) Each holder of a certificate or permit issued by the Commission
shall keep on file with the Commission, insurance policy or bond
in some insurance company or association or other insurer author-
ized to transact business in this State, and said insurance or bond filed
with the Commission shall be kept in full force at all times, and the
insurance policy or bond shall remain in the files of the Comniission
six months after the certificate or permit is cancelled for any cause. If
Federal, State or municipal bonds are deposited with the Treasurer of
the State in lieu thereof, the bonds shall remain so deposited until six
months after the certificate or permit is cancelled for any cause, unless
otherwise ordered by the State Corporation Commission.
(d) The insurance bond, or other security, shall obligate the
insurer or surety to pay any final judgment for damages sustained by
the passengers, shippers, or consignees for injury to passenger or
passengers, or for loss or damage to property entrusted to such motor
carrier where cargo policy is required, and for any and all injuries to
persons and loss of or damage to property resulting from the negligent
operation of any motor vehicle.

(e) Nothing in this act shall relieve any holders of certificate or
permit by and under the authority of the Commission from any liability
resulting from his or its negligence, whether or not it has complied
with the requirements of this section, or any subsections.

(f£) Failure of any holder of a certificate or permit issued by and
under the authority of the Commission to comply with any of the re-
quirements of this section shall be cause for the revocation or suspension
of the certificate or permit, or a fine not exceeding one thousand dollars.