CHAPTER 378

An Act to amend and reenact §§ 46-431, 46-487, 46-455, 46-460, 46-474,
46-492 of the Code of Virginia, all being part of the Motor Vehicle
Safety Responsibility Act, in order to change certain minimum pro-
visions of the security for damages and proof of financial responsi-
bility required after certain accidents.

[H 535]

Approved April 2, 1954
Be it enacted by the General Assembly of Virginia:

1. That §§ 46-4381, 46-437, 46-455, 46-460, 46-474, and 46-492 of the
Code of Virginia be amended and reenacted as follows:

§ 46-431. Every judgment herein referred to shall for the purpose
of this chapter only be deemed satisfied:

(1) When paid in full or when * ten thousand dollars has been cred-
ited upon any judgment or judgments rendered in excess of that amount
because of bodily injury to or death of one person as the result of any
one accident;

(2) When, subject to the limit of * ten thousand dollars because of
bodily injury to or death of one person, the judgment has been paid in
full or when the sum of * twenty thousand dollars has been credited upon
any judgment or judgments rendered in excess of that amount because
of bodily injury to or death of two or more persons as the result of any
one accident; or

(3) When the judgment has been paid in full or when one thousand
dollars has been credited upon any judgment or judgments rendered in
excess of that amount because of injury to or destruction of property of
others as a result of any one accident.

Payments made in settlement of any claims because of hodily injury,
death or property damage arising from a motor vehicle accident shall be
credited in reduction of the amount provided for in this section.

§ 46-487. The provisions of the preceding section shall not apply to:

(1) An owner, operator or chauffeur if the owner had in effect, at
the time of the accident, with respect to the motor vehicle involved, a
standard provisions automobile liability policy in form approved by the
State Corporation Commission and issued by an insurance carrier author-
ized to do business in this State or, if the motor vehicle was not regis-
tered in this State or was a motor vehicle which was registered elsewhere
than in this State at the effective date of the policy, or at its most recent
renewal, an automobile liability policy acceptable to that Commission as
supstantially the equivalent of a standard provisions automobile liability
poncy ,;

(2) An operator or chauffeur if not the owner of the motor vehicle,
if there was in effect at the time of the accident such a policy with
respect to his operation of motor vehicles now owned by him or, if such
motor vehicle was a private passenger motor vehicle, with respect to his
operation of a private passenger motor vehicle not owned by him; or

(3) An owner, operator or chauffeur if his liability for damages
resulting from the accident is, in the judgment of the Commissioner,
covered by any other form of liability insurance policy issued by an
insurance carrier authorized to do husiness in this State or by a bond;
provided, that every such policy or bond mentioned herein is subject, if
the accident has resulted in bodily injury or death, to a limit, exclusive
of interest and costs, of * ten thousand dollars because of bodily injury
to or death of one person in any one accident and, subject to that limit
for one person, to a limit of * twenty thousand dollars because of bodily
injury to or death of two or more persons in any one accident and, if
the accident has resulted in injury to or destruction of property, to a
limit of one thousand dollars because of injury to or destruction of prop-
erty of others in any one accident.

§ 46-455. Proof of financial responsibility means proof of ability
to respond in damages for liability thereafter incurred arising out of the
ownership, maintenance, use or operation of a motor vehicle, in the
amount of * ten thousand dollars because of bodily injury to or death of
any one person, and subject thereto for one person in the amount of *
twenty thousand dollars because of bodily injury to or death of two or
more persons in any one accident, and in the amount of one thousand
dollars because of injury to or destruction of property in any one acci-
dent. Proof in these amounts shall be furnished for each motor vehicle
registered by the person.

§ 46-460. A nonresident owner of a foreign vehicle may give proof
of financial responsibility by filing with the Commissioner a written cer-
tificate or certificates of an insurance carrier not authorized to transact
business in this State but authorized to transact business in any other
state, the District of Columbia, any territory, district or possession of
the United States and under its exclusive control, the Dominion of
Canada, Newfoundland, or any province or territorial subdivision of
either, in which each motor vehicle described in the certificate is regis-
tered or, if the nonresident does not own a motor vehicle, then in the
like jurisdiction in which the insured resides and otherwise conforming
to the provisions of this chapter. The Commissioner shall accept the same
if the insurance carrier, in addition to having complied with all other
provisions of this chapter as requisite, shall:

(1) Execute a power of attorney authorizing the Commissioner to
accept service on its behalf of notice or process in any action arising
out of a motor vehicle accident in this State;

(2) Duly adopt a resolution, which shall be binding upon it, declar-
ing that its policies are to be deemed to be varied to comply with the
law of this State and the terms of this chapter relating to the terms of
motor vehicle liability policies issued herein;

(3) Agree to accept as final and binding the judgment of any court
of competent jurisdiction in this State from which judgment no appeal
is or can be taken, duly rendered in any action arising out of a motor
vehicle accident;

(4) Deposit with the State Treasurer cash or securities such as are
mentioned in § 46-474 or the surety bond of a company authorized to
do business in Virginia equal in value to * twenty-one thousand dollars
for each insurance policy filed as proof of financial responsibility.

§ 46-474. A person may give proof of financial responsibility by
delivering to the Commissioner * twenty-one thousand dollars in cash or
in securities such as fiduciaries may invest in according to the provisions
of §§ 26-40 to 26-45.

§ 46-492. Every owner’s policy shall:

(1) Designate by explicit description or by appropriate reference,
all motor vehicles with respect to which coverage is intended to be
granted.

(2) Insure as insured the person named and any other person using
or responsible for the use of the motor vehicle or motor vehicles with
the permission of the named insured.

(3) Insure the insured or other person against loss from any liabil-
ity imposed by law for damages, including damages for care and loss of
services, because of bodily injury to or death of any person and injury to
or destruction of property caused by accident. and arising out of the
ownership, use or operation of such motor vehicle or motor vehicles
within this State, any other state of the United States, the United States,
any territory, district or possession of the United States and under its
exclusive control, the District of Columbia, the Dominion of Canada, or
Newfoundland, or any province or territorial subdivision of either, sub-
ject to a limit exclusive of interests and costs, with respect to each motor
vehicle, of * ten thousand dollars because of bodily injury to or death
of one person in any one accident and, subject to the limit for one person,
to a limit of * twenty thousand dollars because of bodily injury to or
death of two or more persons in any one accident, and to a limit of one
thousand dollars hecause of injury to or destruction of property of others
in any one accident.

2. This act shall not become effective until July 1, 1955.