CHAPTER 685

An Act to amend and reenact §§ 46.1-1, 46.1-444, 46.1-450, 46.1-472,
46.1-485 and 46.1-504, as severally amended, of the Code of Virginia,
relating to definitions under the Motor Vehicle Code and coverage of
motor vehicle owners liability insurance; when judgments for dam-
ages in motor vehicle accidents deemed satisfied; persons to whom
security for damages and proof of financial responsibility not re-
quired; proof of financial responsibility by nonresidents; powers of
attorney; proof of financial responsibility by delivering cash or
securities.

[H 824]

Approved April 5, 1968

Be it enacted by the General Assembly of Virginia:

1. That §§ 46.1-1, 46.1-444, 46.1-450, 46.1-472, 46.1-485 and 46.1-504, as
severally amended, ‘of the Code of Virginia be amended and reenacted as
ollows:

§ 46.1-1. Definitions—The following words and phrases when used
in this title shall, for the purpose of this title have the meanings respec-
tively ascribed to them in this section except in those instances where the
context clearly indicates a different meaning:

(1) “Business district’’.—The territory contiguous to a highway
where seventy-five per centum or more of the total frontage, on either side
of the highway, for a distance of three hundred feet or more is occupied
by land and buildings actually in use and operation for business purposes.

(2) “Chauffeur’.—Every person employed for the principal purpose
of operating a motor vehicle and every person who drives a motor vehicle
while in use as a public or common carrier of persons or property.

(3) “Commission”.—The State Corporation Commission.

(4) “Commissioner’.—The Commissioner of the Division of Motor
Vehicles of this State.

(4a) “Crosswalk’’.—(a) That part of a roadway at an intersection
included within the connections of the lateral lines of the sidewalks on
opposite sides of the highway measured from the curbs or, in the absence
of curbs, from the edges of the traversable roadway ;

(b) Any portion of a roadway at an intersection or elsewhere dis-
tinetly indicated for pedestrian crossing by lines or other markings on the
surface.

(5) “Division’.—The Division of Motor Vehicles of this State.

(6) “Essential parts’’.—All integral parts and body parts, the re-
moval, alteration or substitution of which will tend to conceal the identity
of a vehicle.

(7) “Farm tractor’’.—Every motor vehicle designed and used pri-
marily as a farm, agricultural or horticultural implement for drawing
plows, mowing machines and other farm, agricultural or horticultural
machinery and implements.

(8) “Financial responsibility’’.—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 * twenty thousand
dollars because of bodily injury to or death of any one person and, subject
to such limit for one person, in the amount of thirty thousand dollars
because of bodily injury to or death of two or more persons in any one
accident, and in the amount of five thousand dollars because of injury to
or destruction of property in any one accident.

(9) “Foreign vehicles’’.—Every motor vehicle, trailer or semitrailer
which shall be brought into this State otherwise than in the ordinary
course of business by or through a manufacturer or dealer and which has
not been registered in this State.

(10) “Highway’’.—The entire width between the boundary lines of
every way or place of whatever nature open to the use of the public for
purposes of vehicular travel in this State, including the streets, alleys and
publicly maintained parking lots in counties, cities and towns.

(10a) “Roadway’”.—That portion of a highway improved, designed
or ordinarily used for vehicular travel, exclusive of the shoulder. A high-
way may include two or more roadways if divided by a physical barrier
or barriers or unpaved area.

(10b) “Traffic lane” or “lane”.—That portion of a roadway designed
a gellil to accommodate the forward movement of a single line of
vehicles.

(10c) “Shoulder’’.—That part of a highway between the portion reg-
ularly travelled by vehicular traffic and the lateral curb line or ditch.

(11) “Intersection”’.—(a) The area embraced within the prolongation
or connection of the lateral curb lines, or, if none, then the lateral bound-
ary lines of the roadways of two highways which join one another at, or
approximately at, right angles, or the area within which vehicles travelling
upon different highways joining at any other angle may come in conflict.

(b) Where a highway includes two roadways thirty feet or more
apart, then every crossing of each roadway of such divided highway by an
intersecting highway shall be regarded as a separate intersection. In the
event such intersecting highway also includes two roadways thirty feet or
more apart, then every crossing of two roadways of such highways shall
be regarded as a separate intersection.

(12) “Manufacturer’.—Every person engaged in the business of con-
structing or assembling motor vehicles, trailers or semitrailers at an estab-
lished place of business in this State.

(12a) “Dealer’.—Every person engaged in the business of buying,
selling or exchanging motor vehicles, trailers, and semitrailers in this
State and who has an established place of business for such purpose in
this State at which place of business the books and records of such dealer
are kept and at which a substantial part of the business of such dealer is
conducted.

(13) “Metal tires”.—All tires the surface of which in contact with
the highway is wholly or partly of metal or other hard, nonresilient
material.

(14) “Motorcycle’.—Every motor vehicle designed to travel on not
more than three wheels in contact with the ground and any four-wheeled
vehicle weighing less than five hundred pounds and equipped with an
engine of less than six horsepower, except any such vehicle as may be
included within the term “farm tractor” as herein defined.

(15) “Motor vehicle’.—Every vehicle as herein defined which is self-
propelled or designed for self-propulsion except that the definition con-
tained in § 46.1-389(d) shall apply for the purposes of chapter 6 (§ 46.1-
388 et seq.) of this title.

(15a) “Antique motor vehicle’.—Every motor vehicle, as herein de-
fined, which is over twenty-five years old and is owned solely as a col-
lector’s item, and is used for participation in club activities, exhibits,
tours, parades, and similar uses, but in no event used for general trans-
ae Ea may be classified by the Commissioner as an antique motor
vehicle.

(16) “Nonresident”.—Every person who is not domiciled in this
State, except:

(a) Any foreign corporation which is authorized to do business in
this State by the State Corporation Commission shall be deemed a resident
of this State for the purpose of this title; provided, however, that in the
sase of corporations incorporated in this State but doing business withoi
he State, only such principal place of business or branches located withi
his State shall be dealt with as residents of this State.

(b) A person who becomes engaged in a gainful occupation in thi
‘tate for a period exceeding sixty days, shall be deemed a resident for th
urposes of this title.

(c) A person who has actually resided in this State for a period o
ix months, whether employed or not, or who has registered a moto:
vehicle, listing an address within this State in the application for regis
ration shall be deemed a resident for the purposes of this title.

(17) “‘Operator’.—Every person who drives or is in actual physica
control of a motor vehicle upon a highway or who is exercising contro!
over or steering a vehicle being towed by a motor vehicle.

(18) “‘Owner’.—A person who holds the legal title of a vehicle or,
in the event a vehicle is the subject of an agreement for the conditional]
sale or lease thereof with the right of purchase upon performance of the
conditions stated in the agreement and with an immediate right of pos-
session vested in the conditional vendee or lessee or in the event a mort-
gagor of a vehicle is entitled to possession, then such conditional vendee
or lessee or mortgagor shall be deemed the owner for the purpose of this
title, except that in all such instances when the rent paid by the lessee
includes charges for services of any nature or when the lease does not
provide that title shall pass to the lessee upon payment of the rent stipu-
lated, the lessor shall be regarded as the owner of such vehicle and the
vehicle shall be subject to such requirements of this title as are applicable
to vehicles operated for compensation; provided, however, that a “truck
lessor” as hereinafter defined shall be regarded as the owner, and his
vehicles shall be subject to such requirements of this title as are applicable
to vehicles of private carriers.

(19) “Peace” or “police” officer.—Every officer authorized to direct
or regulate traffic or to make arrests for violations of traffic regulations.

(20) ‘“Person”’.—Every natural person, firm, partnership, association
or corporation.

(21) “Pneumatic tires’’.—All tires inflated with compressed air.

(22) “Private road or driveway’’.—Every way in private ownership
and used for vehicular travel by the owner and those having express or
implied permission from the owner, but not by other persons.

(23) “Reconstructed vehicle’.—Every vehicle of a type required to
be registered hereunder materially altered from its original construction
by the removal, addition or substitution of essential parts, new or used.

(24) “Residence district”.—The territory contiguous to a highway
not comprising a business district where seventy-five per centum or more
of the total frontage, on either side of the highway, for a distance of three
hundred feet or more is occupied by dwellings or by dwellings and land
or buildings in use for business purposes.

(25) “Road tractor’’.—Every motor vehicle designed and used for
drawing other vehicles and not so constructed as to carry any load thereon
independently or any part of the weight of a vehicle or load so drawn.

(26) “Safety zone’.—The area or space officially set apart within a
roadway for the exclusive use of pedestrians and which is protected or 19
so marked or indicated by adequate signs as to be plainly visible at all
times while set apart as a safety zone.

(27) “Semitrailer’.—Every vehicle of the trailer type so designed
and used in conjunction with a motor vehicle that some part of its own
weight and that of its own load rests upon or is carried by another vehicle

(28) “Solid rubber tires’’.—Every tire made of rubber other than ¢
pneumatic tire.

(29) “Specially constructed vehicles”’.—Any vehicle which shall no
have been originally constructed under a distinctive name, make, model or
type by a generally recognized manufacturer of vehicles and not a recon-
structed vehicle as herein defined.

(30) “Superintendent’’.—The Superintendent of the Department of
State Police of this State.

(31) “Town”.—An incorporated town.

(32) “Tractor truck’’.—Every motor vehicle designed and used pri-
marily for drawing other vehicles and not so constructed as to carry a load
other than a part of the load and weight of the vehicle attached thereto.

(33) “Trailer’.—Every vehicle without motive power designed for
carrying property or passengers wholly on its own structure and for
being drawn by a motor vehicle.

(34) “Vehicle’.—Every device in, upon or by which any person or
property is or may be transported or drawn upon a highway, except
devices moved by human power or used exclusively upon stationary rails
or tracks.

(35) “Operation or use for rent or for hire,” etc.—The terms oper-
ation or use for rent or for hire, for the transportation of passengers,
or as a property carrier for compensation, and the term business of trans-
porting persons or property, wherever used in this title, mean any owner
or operator of any motor vehicle, trailer or semitrailer operating over the
highways of this State who accepts or receives compensation for the
service, directly or indirectly; but such terms shall not be construed to
mean a “truck lessor” as defined herein.

(386) “Truck lessor’.—A person who holds the legal title to any motor
vehicle, trailer or semitrailer which is the subject of a bona fide written
lease for a term of one year or more to another person, provided that :—

(a) Neither the lessor nor the lessee is a common carrier by motor
vehicle or restricted common carrier by motor vehicle or contract carrier
by motor vehicle as defined in § 56-273 of the Code; and

(b) The leased motor vehicle, trailer or semitrailer is used exclusively
for the transportation of property of the lessee; and

(c) The lessor is not employed in any capacity by the lessee; and

(d) The operator of the leased motor vehicle is a bona fide employee
of the lessee and is not employed in any capacity by the lessor; and

(e) A true copy of such lease, verified by affidavit of the lessor, is
filed with the Commissioner.

§ 46.1-444. When judgment deemed satisfied.—(a) Every judgment
for damages in any motor vehicle accident herein referred to shall for the
purpose of this chapter only be deemed satisfied :

When paid in full or when * 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 one person as the result
of any one accident;

(2) When, subject to the limit of * twenty thousand dollars because of
bodily injury to or death of one person, the judgment has been paid in
full or when the sum of thirty 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 five 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.

(b) Payments made in settlement of any claims because of bodily
injury, death or property damage arising from a motor vehicle accident
shall be credited in reduction of the amount provided in this section.
§ 46.1-450. Persons to whom § 46.1-449 not applicable——The pro-
visions of § 46.1-449 shall not apply to:

(a) 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 Cor-
poration Commission and issued by an insurance carrier authorized to do
business in this State or, if the motor vehicle was not registered 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 substantially
the equivalent of a standard provisions automobile liability policy; pro-
vided, in either event, that every such automobile liability policy is subject
to the limits provided in § 46.1-504.

(b) 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 not 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

(c) 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 in-
surance carrier authorized to do business in this State or by a bond; pro-
vided, that every such policy or bond mentioned herein is subject to a limit,
exclusive of interest and costs, of * twenty 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 thirty thousand dollars because of
bodily injury to 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.

§ 46.1-472. Certificate for nonresident may be by carrier not quali-
fied in State——A nonresident owner of a vehicle not registered in Virginia
may give proof of financial responsibility by filing with the Commissioner
a written certificate or certificates of an insurance carrier not authorized
to transact business in this State but authorized to transact business in
any other state, any territory or possession of the United States and under
its exclusive control, the Dominion of Canada or its provinces or the
territorial subdivisions of such states or countries, in which such motor
vehicle described in the certificate is registered 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
a having complied with all other provisions of this chapter as requisite,
s

(a) 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;

(b) Duly adopt a resolution, which shall be binding upon it, de
claring 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;

(c) 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;

(d) Deposit with the State Treasurer cash or securities such as are
mentioned in § 46.1-485 or the surety bond of a company authorized to do
business in Virginia equal in value to thirty-five thousand dollars for
each insurance policy filed as proof of financial responsibility.
§ 46.1-485. Proof of financial responsibility by delivering cash or
securities.—A person may give proof of financial responsibility by deliver-
ing to the Commissioner thirty-five thousand dollars in cash or in securi-
ties such as fiduciaries may invest in according to the provisions of §§
26-40 to 26-45.

§ 46.1-504. Coverage of owner’s policy.—Every owner’s policy shall:

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

(b) 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.

(c) Insure the insured or other person against loss from any liability
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 own-
ership, use or operation of such motor vehicle or motor vehicles within this
State, any other state in the United States, any territory, district or pos-
session of the United States and under its exclusive control or the Domin-
ion of Canada, subject to a limit exclusive of interest and costs, with
respect to each motor vehicle, of * twenty 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 thirty thousand dollars because
of bodily injury to 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.

This act shall become effective January one, nineteen hundred and
seventy.