Chapter 4501:1-2 Financial Responsibility

4501:1-2-01 Proof of financial responsibility.

(A) Except as provided in paragraph (C) of this rule, proof of financial responsibility may be shown by any of the following:

(1) A policy of liability insurance, the declaration page of a policy of liability insurance, or a liability bond, if the policy or bond complies with section 4509.20 or sections 4509.49 to 4509.61 of the Revised Code;

(2) A financial responsibility identification card issued in compliance with rule 4501:1-2-02 of the Administrative Code;

(3) A certificate of proof of financial responsibility signed by an authorized insurance agent on a form prescribed by the registrar of motor vehicles for the filing of an accident report pursuant to section 4509.06 of the Revised Code. The form shall be filled out in its entirety and stamped with the business stamp of the agency, or accompanied by a letter verifying the authenticity of the signature.

(B) In all instances, proof of financial responsibility may be shown by:

(1) A bond issued in compliance with section 4509.59 of the Revised Code and rule 4501:1-2-03 of the Administrative Code;

(2) A certificate issued by the registrar of motor vehicles for the deposit of money or securities in compliance with section 4509.62 of the Revised Code and rule 4501:1-2-04 of the Administrative Code;

(3) A certificate of self-insurance issued by the registrar pursuant to section 4509.72 of the Revised Code and rule 4501:1-2-05 of the Administrative Code; or

(4) An AAMVA uniform financial responsibility form, SR-22, as prescribed by the American association of motor vehicle administrators.

(C) Whenever a person is required by law to give and maintain proof of financial responsibility for a definite period of time as a condition for maintaining driving privileges, proof may not be given by any of the methods stated in paragraph (A) of this rule, but shall be given by one of the methods stated in paragraph (B) of this rule.

(D) In addition to the methods provided in paragraphs (A) and (B) of this rule, a motor carrier certified by the interstate commerce commission or by the public utilities commission may demonstrate proof of financial responsibility by providing a statement designating the motor carrier's operating authority and averring that the insurance coverage required by the certificating authority is in full force and effect.

Effective: 03/22/2010
R.C. 119.032 review dates: 12/31/2009 and 12/31/2014
Promulgated Under: 119.03
Statutory Authority: R.C. 4501.02 , R.C. 4509.101
Rule Amplifies: R.C. 4509.45
Prior Effective Dates: 4/20/95

4501:1-2-02 Financial responsibility identification card.

(A) Each insurer writing motor vehicle liability insurance in this state shall provide financial responsibility identification cards to every policyholder in this state to whom it delivers or issues for delivery a motor vehicle liability insurance policy. A minimum of one financial responsibility identification card shall be issued for every motor vehicle insured under a motor vehicle liability insurance policy.

(B) A financial responsibility identification card shall be valid only for the policy period. The card shall disclose the policy period and shall:

(1) Bear the inscription, "Financial Responsibility Identification Card" or "Insurance Identification Card" or other inscription reasonably calculated to evidence motor vehicle liability insurance coverage;

(2) Be provided with every new policy and every policy renewal ;

(3) Be printed on twenty pound or greater paper stock or equivalent plastic material;

(4) Contain the description of the insured motor vehicle, including year, make, model, and vehicle identification number. If there are five or more vehicles covered by the same policy, the word "Fleet" may be used instead of the vehicle description;

(5) Contain the effective date and expiration date of the policy of insurance. New cards shall be issued at the issuance or renewal of every policy; stickers or decals shall not be used to change the coverage dates on any card;

(6) Contain the policyholder's name as it appears on the policy; and

(7) Contain the name of the issuing company and the policy number.

(C) Financial responsibility identification cards may also contain the issuing company's logo and any additional appropriate information reasonably included by the insurer. The registrar may direct an insurer to delete any additional information the registrar determines to be inappropriate and shall give the insurer a reasonable time to comply. If the insurer fails to comply, the registrar may direct that the card shall not be accepted as proof of financial responsibility in this state.

Effective: 03/22/2010
R.C. 119.032 review dates: 12/31/2009 and 12/31/2014
Promulgated Under: 119.03
Statutory Authority: R.C. 4501.02 , R.C. 4509.101
Rule Amplifies: R.C. 4509.103 , R.C. 4509.45
Prior Effective Dates: 4/20/95

4501:1-2-03 Financial responsibility bonds.

(A) Proof of financial responsibility may be evidenced by the bond of a surety company duly authorized to transact business within this state if the bond is issued in compliance with section 4509.59 of the Revised Code.

(B) Proof of financial responsibility also may be evidenced by a certificate of bond issued by the registrar of motor vehicles in accordance with this paragraph. The registrar shall prescribe a form upon which an application for a certificate of bond may be issued. A financial responsibility bond issued under this paragraph shall be:

(1) In the amount of thirty thousand dollars;

(2) Signed by two individuals who own real estate having equity totaling at least sixty thousand dollars;

(3) Completed in full, including the legal description of the real estate;

(4) Duly witnessed and notarized;

(5) Approved by a judge of a court of record;

(6) Accompanied by a check or money order in the amount specified in section 4509.60 of the Revised Code made payable to the county recorder of the county in which the real estate is located, and

(7) If approved by the registrar, submitted to the appropriate county recorder for recording.

(C) A certificate of bond issued under paragraph (B) of this rule shall not be effective until the registrar receives the recorded document from the county recorder and issues a certificate to the applicant.

R.C. 119.032 review dates: 12/31/2009 and 12/31/2014
Promulgated Under: 119.03
Statutory Authority: R.C. 4501.02 , R.C. 4509.101
Rule Amplifies: R.C. 4509.59 , R.C. 4509.45
Prior Effective Dates: 4/20/95

4501:1-2-04 Deposits of money or securities.

(A) Proof of financial responsibility may be evidenced by the certificate of the treasurer of state that the person named therein has deposited with the treasurer thirty thousand dollars in money or bonds of the United States, of this state, or of a political subdivision of this state at their par or face value. The treasurer of state shall not accept any such deposit and issue a certificate therefor and the registrar of motor vehicles shall not accept such certificate unless it is accompanied by evidence that there are no unsatisfied judgments against the depositor in the county where the depositor resides.

(B) The application for and the issuance of a certificate under this rule shall be as follows:

(1) The applicant shall complete the application prescribed by the registrar of motor vehicles and sign the application in the presence of a notary public;

(2) The applicant shall deliver or otherwise transmit at applicant's own risk either thirty thousand dollars in the form of a money order or cashier's check payable to "Treasurer, State of Ohio" or bonds of the United States, or this state or a political subdivision of this state having a aggregate par or face value of at least thirty thousand dollars, along with the application, to the bureau of motor vehicles;

(3) Upon receipt of the application and the thirty thousand dollars in money or bonds, the registrar shall either approve or disapprove the application;

(4) If approved, the registrar shall transmit to the treasurer the money or bonds for deposit . No interest shall accrue to the credit of the applicant upon any money deposited by the treasurer pursuant to this rule;

(5) If approved by the treasurer of state, the treasurer shall deposit the money or bonds and shall execute a "Receipt and Certificate of Financial Responsibility" and return it to the registrar;

(6) The registrar shall transmit the receipt and certificate of financial responsibility to the applicant;

(7) The proof of financial responsibility shall become effective upon the registrar's receipt of the certificate from the treasurer.

Effective: 03/22/2010
R.C. 119.032 review dates: 12/31/2009 and 12/31/2014
Promulgated Under: 119.03
Statutory Authority: R.C. 4501.02 , R.C. 4509.101
Rule Amplifies: R.C. 4509.62 , R.C. 4509.45
Prior Effective Dates: 4/20/95

4501:1-2-05 Self-insurance.

(A) Any person in whose name more than twenty-five motor vehicles are registered in this state may qualify as a self-insurer by obtaining a certificate of self-insurance issued by the registrar of motor vehicles as provided in division (B) of section 4509.72 of the Revised Code and this rule. For the purposes of this rule, a person who owns or leases more than twenty-five vehicles which are registered in this state may qualify for self-insurance. The registrar shall prescribe a definite term of not more than five years for each certificate.

(B) The registrar shall issue a certificate of self-insurance upon the application of any such person who is of sufficient financial ability to pay judgments against him. A certificate may be issued authorizing a person to act as a self-insurer for either property damage or bodily injury liability, or both. Application for self-insurance may be made to the registrar under paragraph (C), (D), or (E) of this rule.

(C) The registrar shall issue a certificate of insurance if the registrar determines that all of the following conditions are met:

(1) The applicant operates more than twenty-five motor vehicles which are registered in this state and are either owned or leased by the applicant;

(2) The applicant is financially solvent, and not subject to any actions in bankruptcy, trusteeship, receivership or any other court proceeding in which the applicant's financial solvency is in question;

(3) The applicant has a net worth of at least one hundred thousand dollars and sufficient reserves to pay any judgment likely to be taken against the applicant arising out of the operation, maintenance or use of any motor vehicle;

(4) The applicant has no judgments taken against him which have remained unsatisfied more than thirty days after becoming final;

(5) There are no other factors which cause the registrar to believe the applicant is not of sufficient financial ability to pay judgments against the applicant.

(D) The registrar may issue a certificate of self-insurance to a nonprofit corporation if the registrar determines that all of the following conditions are met:

(1) The corporation is a nonprofit corporation in good standing with the Ohio secretary of state under Chapter 1702. of the Revised Code;

(2) Members of the nonprofit corporation operate more than twenty-five motor vehicles which are registered in this state and are either owned or leased by them;

(3) One of the purposes of the nonprofit corporation is to allow its members to pool their risks in the operation of motor vehicles;

(4) The nonprofit corporation is financially solvent, and not subject to any actions in bankruptcy, trusteeship, receivership or any other court proceeding in which the nonprofit corporation's financial solvency is in question;

(5) The nonprofit corporation maintains a reserve of at least one hundred thousand dollars to assure payment of any judgment taken against its covered members arising out of the operation, maintenance or use of a motor vehicle;

(6) Neither the nonprofit corporation nor any of its covered members has any judgments arising out of the operation, maintenance or use of a motor vehicle taken against them which have remained unsatisfied for more than thirty days after becoming final; and

(7) There are no other factors which cause the registrar to believe that the nonprofit corporation is not of sufficient financial ability to pay judgments against it or its covered members.

(E) The registrar may issue a certificate of self-insurance to a religious organization if the registrar determines that all of the following conditions are met:

(1) Members of the regligious organization operate more than twenty-five motor vehicles which are registered in this state and are either owned or leased by them;

(2) The members hold a common belief in mutual financial assistance in time of need to the extent that they share in financial obligations of other members who would otherwise be unable to meet their obligations;

(3) The religious organization is financially solvent, and not subject to any actions in bankruptcy, trusteeship, receivership or any other court proceeding in which the organization's financial solvency is in question;

(4) Neither the religious organization nor any of its participating members has any judgments arising out of the operation, maintenance or use of a motor vehicle taken against them which have remained unsatisfied for more than thirty days after becoming final; and

(5) There are no other factors which cause the registrar to believe that the religious organization and its members are not of sufficient financial ability to pay judgments taken against them.

(F) Upon not less than five days' notice and a hearing pursuant to such notice, the registrar may cancel a certificate of self-insurance upon failure to pay any judgment within thirty days after such judgment has become final or upon other proof that such person is no longer of sufficient financial ability to pay judgments against him.

R.C. 119.032 review dates: 12/31/2009 and 12/31/2014
Promulgated Under: 119.03
Statutory Authority: R.C. 4501.02 , R.C. 4509.101
Rule Amplifies: R.C. 4509.72 , R.C. 4509.45
Prior Effective Dates: 4/20/1995

4501:1-2-06 Procedures for the surrender of suspended certificates of registration, license plates, and driver's licenses and procedures for reinstatement.

(A) If any driver or owner surrenders his certificate of registration, license plates, or driver's license to a court pursuant to division (B) of section 4509.101 of the Revised Code, the court shall transmit the certificate of registration, license plates, or driver's license to the registrar of motor vehicles for further disposition.

(B) The following procedures shall be followed for any driver or owner who fails to comply with a court order issued pursuant to division (B) of section 4509.101 of the Revised Code directing the surrender of his certificate of registration, license plates, or driver's license and to any driver or owner who fails to show proof of financial responsibility to the registrar of motor vehicles as required upon random selection, after a motor vehicle accident, upon issuance of a traffic ticket, or in conjunction with a motor vehicle inspection pursuant to division (A)(3)(d), (C)(3)(d), or (E)(3)(d), respectively, of the Revised Code:

(1) The registrar shall send a written notice to the driver or owner at his last known address. The notice shall be on a form prescribed by the registrar and:

(a) Shall inform the driver or owner that his certificate of registration, license plates, or driver's license, or all of them, are suspended;

(b) Shall direct the driver or owner to surrender his certificate of registration, license plates, or driver's license, or all of them, to the bureau of motor vehicles;

(c) Shall state the duration of the suspension;

(d) May give notice of the driver's or owner's right, if any, to request a hearing or appeal the suspension and surrender determination; and

(e) May contain any other information the registrar may prescribe.

(2) Upon receipt of notice the driver or owner shall immediately surrender his certificate of registration, license plates, or driver's license in accordance with the registrar's notice by transmitting them to the bureau of motor vehicles at the address specified in the notice.

(3) The registrar may cause such information about the notice and directive to surrender as he deems appropriate to be entered in the law enforcement automated data system (LEADS).

(4) Any peace officer who, in the performance of his duties as authorized by law, becomes aware of a person whose license is under an order of suspension, or whose certificate of registration and registration plates are under an order of impoundment, pursuant to section 4509.101 of the Revised Code, may confiscate such license, certificate of registration, and registration plates, and return them to the registrar.

(5) If the driver or owner does not make a timely and voluntary surrender, the registrar may designate and authorize employees of the bureau of motor vehicles to obtain the surrender of certificates of registration, license plates, or driver's license directly from the driver or owner.

(C) Upon receipt of any certificates of registration, license plates, or driver's licenses surrendered in accordance with this rule, the registrar shall destroy them pursuant to sections 4503.232 and 4507.54 of the Revised Code.

(D) If any driver's license suspension and order of surrender results from a court order, the registrar shall record the length of the suspension in accordance with that order. In all other instances the registrar shall determine the length of any driver's license suspension based upon the records of the bureau of motor vehicles. The registrar shall not restore any driver's license until the suspension period has expired.

(E) The registrar shall determine from the records of the bureau of motor vehicles the amount of the financial responsibility reinstatement fee in accordance with division (A)(5)(a) of section 4509.101 of the Revised Code.

(F) The registrar shall determine from the records of the bureau of motor vehicles whether the driver or owner is required to pay a financial responsibility nonvoluntary compliance fee and the amount of that fee, if any, for failure to comply with any order or notice requiring the surrender of his certificate of registration, license plates, or driver's license.

(G) The registrar shall not restore any operating privileges or registration rights or return any license, certificate of registration, or license plates unless the rights are not subject to suspension or revocation under any other law and unless the person, in addition to complying with all other conditions required by law for reinstatement of the operating privileges or registration rights, complies with all of the following:

(1) Pays a financial responsibility reinstatement fee as determined by the registrar in accordance with this rule;

(2) Pays the financial responsibility nonvoluntary compliance fee, if any, as determined by the registrar in accordance with this rule; and

(3) Files and maintains proof of financial responsibility in accordance with paragraph (B) of rule 4501:1-2-01 of the Administrative Code.

(H) When the period of any driver's license suspension has expired and the person has complied with all requirements of paragraph (G) of this rule, the registrar shall authorize the person to obtain a driver's license. The authorization shall be conditioned upon any other applicable requirement prescribed by law, including the requirement that the person submit to a driver's license examination if his suspended driver's license has been expired for six months or more.

(I) The registrar shall authorize any person whose certificate of registration or license plates which have been suspended to apply for a certificate of registration or license plates upon the registrar's determination that the person has complied with paragraph (G) of this rule.

R.C. 119.032 review dates: 12/31/2009 and 12/31/2014
Promulgated Under: 119.03
Statutory Authority: R.C. 4501.02 , R.C. 4509.101
Rule Amplifies: R.C. 4509.101
Prior Effective Dates: 4/20/95

4501:1-2-07 Requiring proof of financial responsibility by random selection.

(A) This rule governs procedures adopted by the registrar of motor vehicles requiring proof of financial responsibility by random selection.

(B) The bureau of motor vehicles (BMV) vehicle registration data file shall be the original source from which random selections shall be made.

(C) The registrar shall designate the types and classes of vehicles which shall be included in the random selection. Initially, the registrar shall limit selection to passenger cars and noncommercial vehicles, except farm trucks. One year after the random selection begins, and annually thereafter, the registrar may determine whether any types or classes of vehicles shall be added to or deleted from the selection process.

(D) The registrar shall prescribe the number of vehicles to be selected on a random basis. The number may be a stated number or a stated percentage of the vehicles registered in the vehicle types and classes designated by the registrar. Initially, five percent of the designated types and classes of vehicles shall be selected. One year after the random selection begins, and periodically thereafter, the registrar may increase or decrease the number of vehicles selected.

(E) The registrar shall prescribe the method to be used to assure random selection. The method may employ the use of a computer program or any other reasonable method the registrar determines will assure a fair and representative random selection.

(F) The registrar may determine that certain vehicles shall be exempt from the random selection process. Vehicles which may be exempted may include, but are not limited to:

(1) Leased vehicles;

(2) Vehicles used on a seasonal basis only;

(3) Vehicles which are shown by reliable evidence to be inoperable or out of service for at least thirty days;

(4) Such other vehicles as the registrar may reasonably prescribe.

Effective: 03/22/2010
R.C. 119.032 review dates: 12/31/2009 and 12/31/2014
Promulgated Under: 119.03
Statutory Authority: R.C. 4501.02 , R.C. 4509.101
Rule Amplifies: R.C. 4509.101
Prior Effective Dates: 7/31/98

4501:1-2-08 Random selection suspension procedure.

(A) The registrar of motor vehicles shall send a written notice by regular mail to the owner of each vehicle randomly selected in accordance with rule 4501:1-2-07 of the Administrative Code. The notice shall identify the vehicle selected and shall inform the owner that the owner is required to submit proof showing financial responsibility coverage was in effect with respect to the selected vehicle on the date specified by the registrar. The notice shall inform the owner of the methods and procedures for submitting proof of financial responsibility coverage and shall specify that the proof of financial responsibility shall be submitted within twenty-one days of the mailing of the notice. The notice may also contain such other information as the registrar may prescribe.

(B) The owner may submit evidence to show that the vehicle subject to the registrar's notice is exempt because the vehicle is leased, the vehicle is used on a seasonal basis only and the date selected by the registrar is out of season for that vehicle, the vehicle is inoperable or has been out of service for a period of at least thirty days, or the vehicle is exempt for any other reason the registrar may prescribe. The evidence shall be sufficient to show that there is good cause to believe that the vehicle was not operated in violation of section 4509.101 of the Revised Code or was otherwise exempt.

(C) If the owner of a vehicle randomly selected pursuant to rule 4501:1-2-07 of the Administrative Code, within twenty-one days of the mailing of the notice, fails to respond to the notice, fails to give acceptable evidence that the vehicle is exempt, or fails to give acceptable proof of financial responsibility, the registrar shall order the suspension of the license of the person required under division (A)(2)(a) of section 4509.101 of the Revised Code and the impoundment of the person's certificate of registration and license plates required under division (A)(2)(b) of section 4509.101 of the Revised Code, effective no less than fifty-six days after the date of the mailing of notice of suspension. The notice of suspension also shall notify the person that the person must present the registrar with proof of financial responsibility, submit evidence acceptable to the registrar showing that the vehicle is exempt, or surrender to the registrar the person's certificate of registration, license plates, and license. The notice of suspension shall be in writing and shall be sent to the person at the person's last known address as shown on the records of the bureau of motor vehicles. The person, within twenty-one days after the date of the mailing of the notice of suspension, shall present proof of financial responsibility, or submit evidence showing that the vehicle is exempt, together with any other information the person considers appropriate.

(D) If the registrar does not receive proof or the person does not give acceptable evidence that the vehicle is exempt in accordance with this rule, within twenty-one days, the registrar shall send a second notice of suspension to the person by certified mail return receipt requested. If the first notice of suspension is returned as not deliverable, the registrar shall make reasonable efforts to determine if the owner's address has changed before sending the second notice of suspension. The second notice of suspension shall contain the most recent address for the person as determined by the registrar, the same or similar information, and the same suspension date as the original notice of suspension unless the registrar determines that a different suspension date is necessary to give the person adequate notice. The second notice of suspension shall give the person an additional period of no less than fourteen days in which to present the registrar with proof of financial responsibility, or submit evidence acceptable to the registrar showing that the vehicle is exempt, together with any other information the person considers appropriate.

(E) If the registrar does not receive acceptable proof and the person does not give acceptable evidence that the vehicle is exempt in accordance with this rule, the person shall surrender the certificate of registration, license plates, and license to the registrar no later than the date of suspension and the registrar shall permit the order of the suspension of the license of the person and the impoundment of the person's certificate of registration and license plates to take effect.

(F) In the case of a person who presents, within the periods specified in this rule, documents to show proof of financial responsibility, the registrar shall terminate the order of suspension and the impoundment of the registration and license plates required under division (A)(2)(b) of section 4509.101 of the Revised Code and shall send written notification to the person, at the person's last known address as shown on the records of the bureau.

(G) Any person adversely affected by the order of the registrar may request an administrative hearing before the registrar, who shall provide the person with an opportunity for a hearing in accordance with this paragraph. A request for a hearing does not operate as a suspension of the order. The scope of the hearing shall be limited to whether the vehicle is exempt and whether the person in fact demonstrated to the registrar proof of financial responsibility in accordance with this section. The registrar shall determine the date, time, and place of any hearing, provided, that the hearing shall be held, and an order issued or findings made, within thirty days after the registrar receives a request for a hearing. Such person shall pay the cost of the hearing before the registrar, if the registrar's order of suspension or impoundment is upheld.

(H) Any suspensions imposed as a result of the failure to respond to a financial responsibility random verification request shall include a distinctive designation on the records of the registrar and on the records transmitted by the registrar to the law enforcement automated data system (LEADS).

(I) Any person whose license has been suspended because of a failure to respond to a financial responsibility random verification notice may provide proof of financial responsibility at any deputy registrar agency. The proof shall be sufficient to show that the person had financial responsibility coverage in effect on the date specified by the registrar. If the proof is acceptable and the person is not under any other suspensions or disqualifications, the deputy registrar shall reissue the person's driver's license and vehicle registration upon payment of the applicable statutory fees, but without the payment of any reinstatement fees.

(K) In carrying out his duties under this rule, the registrar may contract with outside sources to process any information, send and receive any notices, and take any actions on behalf of the registrar as the registrar may prescribe.

R.C. 119.032 review dates: 12/31/2009 and 12/31/2014
Promulgated Under: 119.03
Statutory Authority: R.C. 4501.02 , R.C. 4509.101
Rule Amplifies: R.C. 4509.101
Prior Effective Dates: 7/31/98, 6/30/99 (Emer.), 9/26/99