Section 16500.5 Of Chapter 4. Commercial Vehicles From California Vehicle Code >> Division 7. >> Chapter 4.
16500.5
. (a) Except as specified in subdivision (b), the owner of
the following commercial vehicles shall maintain proof of financial
responsibility in the amount required by the director:
(1) A vehicle used to carry passengers for hire, except taxicabs
as defined in subdivision (c) of Section 27908.
(2) A vehicle having an unladen weight of over 7,000 pounds which
is used in the transportation of property in the conduct of a
business.
(b) Subdivision (a) does not apply to the following vehicles:
(1) A schoolbus.
(2) A motor vehicle used by a farmer exclusively in the
transportation of his or her livestock, implements of husbandry, and
agricultural commodities or in the transportation of supplies to his
or her farm.
(3) A motor vehicle used by a resident farmer of this state to
occasionally transport from the place of production to a warehouse,
regular market, place of storage, or place of shipment the farm
products of neighboring farmers in exchange for like services, farm
products, or other compensation.
(4) A vehicle used in for-hire transportation which is subject to
regulation by the Public Utilities Commission.
(5) A rented vehicle used for noncommercial transportation of
property.
(c) The director shall establish the amounts which are determined
adequate to cover damages resulting from the ownership or operation
of a commercial vehicle or vehicles subject to this section arising
by reason of personal injury to, or death of, any person or damage to
property, or both. The director shall establish the amounts at
levels equal to those prescribed by the Public Utilities Commission
for owners and operators of for-hire vehicles subject to its
jurisdiction and control.
(d) Proof of financial responsibility may be maintained by any of
the following:
(1) Being insured under one or more motor vehicle liability
policies against that liability.
(2) Obtaining a bond of the same kind, and containing the same
provisions, as those bonds specified in Section 16434.
(3) By depositing with the department five hundred thousand
dollars ($500,000), which amount shall be deposited in a special
deposit account with the Controller for the purpose of this section.
(4) Qualifying as a self-insurer under Section 16053.
(e) The department shall return the deposit made pursuant to
paragraph (3) of subdivision (d) to the person entitled thereto when
the owner is no longer required to maintain proof of financial
responsibility as required by this section or upon the owner's death.
(f) An insurer, agent, or broker who has been incorrectly informed
by an owner of a vehicle or his or her representative that the
vehicle is 7,000 pounds or less unladen weight, or is incorrectly
informed by the owner or his or her representative that the vehicle
is exempt from the requirements of subdivisions (a) and (c) pursuant
to the exemptions set forth in subdivision (b), may issue a policy of
motor vehicle liability insurance in any amount less than that
required by the director but not less than the amounts required under
Section 16451. The policy of motor vehicle liability insurance when
issued shall not be deemed to provide liability coverage amounts
greater than that specifically set forth in the policy
notwithstanding that the vehicle weighs in excess of 7,000 pounds
unladen weight or is subsequently used in a manner which would have
required the vehicle to be insured in the amounts established by the
director pursuant to subdivision (c).