Chap. 376.—An ACT to require and to provide for the effectuation and main-
tenance of certain public liability and property damage insurance on vehicles
engaging in transportation of school pupils and personnel to and from Bie

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schools.
Approved March 31, 1944

Be it enacted by the General Assembly of Virginia:

1. Section 1. No county, city or other public school unit (some-
times referred to as “locality” or “localities” ), in which any school pupils
Or personnel are transported at public expense to or from any public
school supported in whole or in part by State funds, in any vehicle owned
or operated by, or owned or operated by any person under contract with,
the locality or its school board, shall receive any State school funds on
and after July one, nineteen hundred forty-four, unless it complies with
all applicable requirements of this act, as set forth in the following sec-
tions, and full compliance therewith and satisfactory evidence to the
Superintendent of Public Instruction of the effectuation of all requisite
insurance are expressly made conditions precedent to the distribution of
State school funds to localities.

Section 2. (a) Every vehicle so used shall be covered in a policy
of public liability and property damage insurance, issued by an insurance
carrier authorized to transact business in this State, in the amounts of
at least five thousand dollars ($5,000.00) for injury, including death, to
one person, fifty thousand dollars ($50,000.00) for injury, including
death, to all persons injured in any one accident, and five thousand dol-
lars ($5,000.00) for damage, including destruction, to the property of
any person, other than the insured.

(b) The insurance so effected is to be subject to all laws of this
State regulating insurance. ;

(c) This insurance is not required in cases when pupils are trans-
ported on a common carrier if it be covered by a policy of insurance af-
fording substantially the protection required by this act.

Section 3. In every case in which a locality or its school board fails
to obtain, or to require vehicles operated under contract with it to be
covered by, the requisite insurance, by August one of any year, or fails
to notify the Superintendent of Public Instruction of the effectuation of
requisite insurance on or before August ten, it shall be the duty of the
Superintendent of Public Instruction, on or before September ten. to
obtain insurance complying with the requirements of this act on all
vehicles to be used, as far as known to or reasonably ascertainable by
him, for school pupil and personnel transportation in the ensuing session,
and to expend for this purpose the requisite amount out of any State
school funds otherwise distributable, or becoming distributable, to the
particular locality so in default.

Section 4, Every policy of insurance issued in pursuance of the
provisions of this act, in addition to compliance with other requirements
of this act and with the requirements of other applicable laws, shall
cover (1) injury, including death, to school pupils and personnel, except
the driver when not a pupil, riding as passengers on any of the vehicles
so insured when used to transport such persons to or from any school at
which they are required to be by State law or school regulation, (2) in-
jury, including death, to any persons not passengers on any such vehicle,
(3) damage, including destruction, to property of any person, other
than the insured.

Section 5. In case any school pupil or personnel, except the driver
when not a pupil, whether riding in the vehicle or not, or any other per-
son suffers injury, including death, or property damage, including de-
struction, through the ownership, maintenance, use or operation of the
vehicle it shall be sufficient, in an action for recovery upon the policy,
to prove such facts and circumstances as are required to be shown in
order to recover damages for death and/or injury to person or property,
caused by the negligent operation of privately owned motor vehicles, in
Virginia; provided that such pupils and personnel shall not be con-
sidered as guests, and the Virginia Guest Doctrine shall not apply to
them.

Section 6. In case the locality or the school board is the owner, or
operator through medium of a driver, of, or otherwise is the insured
under the policy upon, the vehicle involved in an accident the
locality or school board shall be subject to action up to, but not beyond,
the limits of valid and collectible insurance in force to cover the injury
complained of and the defense of governmental nmmunity shall not be
a bar to action or recovery, and in case of several claims for damages
arising out of a single accident involving the vehicle, the claims of pupils
and school personnel, excluding driver when not a pupil, shall be first
satisfied, but in no event shall school funds be used to pay any claim
or judgment or any person for any injury arising out of the operation of
any such vehicle and the locality or school board so responsible may be
sued alone, or jointly with the driver, provided that in no case shall any
member of a school board be liable personally in the capacity of school
trustee solely.

Section 7. In case the vehicle involved is not owned by the locality
or school board but is operated under contract with the locality or school
board and is involved in an accident, recovery may be had as provided
for in section five of this act.

Section 8. In event that the requisite insurance be not obtained as
to every vehicle used for school pupil and personnel transportation at
public expense as contemplated in this act no State school funds shall be
distributed to or for the locality or school board so in default.

Section 9. If insurance be obtained but lapses while the vehicle
1s still being used or is proposed to be used to transport school pupils
or personnel no school funds remaining to be distributed to the locality
so in default shall be distributed to it until the terms of this act in this
regard have been fully complied with.

Section 10. When the Superintendent of Public Instruction effects
insurance as required by this act, he shall nevertheless not make any
distribution of State school aid funds to the locality or school board so
in default until he has been furnished with satisfactory assurances that
all vehicles required by this act to be covered by insurance have been
duly insured.

Section 11. The provisions of this act apply to all vehicles used in
transporting school pupils and personnel at public expense to any public
free school whether or not the requirements of the State Department
of Education for its approval of vehicles for this use have been complied
with, irrespective of whether or not any State aid for transporting school
puptls and personnel in the particular vehicle has been, is or will be al-
locable.

Section 12. In any case in which a vehicle used for transportation
of school pupils and personnel regularly transports less than ten pupils
the policy of insurance may be in amounts of (1) five thousand dollars
($5,000.00) for injury, including death, to one child, (2) twenty-five
thousand dollars ($25,000.00) for injury, including death, to all persons
in any one accident, (3) one thousand dollars ($1,000.00) for damages,
including destruction, to property of any person except that of the in-
sured, and shall be subject to other provisions of this act.

2. The effective date of this act is July one, nineteen hundred forty-
four.