140 IAC 1-7-3 - Financial collateral
Authority: IC 9-14-8-3; IC 9-25-4-11
Affected: IC 9-25-4-10
Sec. 3.
(a) No
person shall be approved as a self-insurer unless certain minimum financial
collateral is deposited with the treasurer with receipt to the bureau or with
the bureau. The minimum financial collateral to be furnished by the
self-insurer is fifty thousand dollars ($50,000) for the first vehicle and
twenty thousand dollars ($20,000) for each additional vehicle up to a maximum
of one million dollars ($1,000,000). Provided, however, that should the amount
of collateral to be posted under IC
9-25-4-10
be increased or decreased, then the amount of financial collateral to be
deposited for the self-insured's initial vehicle shall be increased or
decreased accordingly.
(b) Only the
following shall be accepted as valid collateral for self-insurance purposes:
(1) United States currency or security as may
be legally purchased by banks or for trust funds that has a market value of the
amount required to be posted for collateral.
(2) Evidence of escrow deposits in favor of
the bureau of motor vehicles in federal or state banks, credit unions, or
savings and loan associations if federally insured; such escrow deposits shall
be established only for providing collateral to meet the obligations of the
self-insurer.
(3) Irrevocable
letter or letters of credit issued by any bank on behalf of the applicant for
self-insurance.
(4) Surety
bond.
(c) Financial
collateral shall not accumulate any interest while on deposit.
Notes
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