Section 140 IAC 1-7-3 - Financial collateralAuthority: 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.(c) Financial collateral shall not accumulate any interest while on deposit. Bureau of Motor Vehicles; 140 IAC 1-7-3; filed Dec 21, 1983, 1:16 p.m.: 7 IR 563, eff Jan 2, 1984 [IC 4-22-2-5 suspends the effectiveness of a rule document for thirty (30) days after filing with the secretary of state. LSA Document #83-94(F) was filed Dec 21, 1983]; errata filed Aug 10, 1992, 3:00 p.m.: 15 IR 2593; readopted filed Jul 30, 2001, 10:23 a.m.: 24 IR 4227; readopted filed Nov 14, 2007, 1:31 p.m.: 20071212-IR-140070562RFA; filed Oct 7, 2008, 10:23 a.m.: 20081105-IR-140080215FRAReadopted filed 11/3/2014, 1:43 p.m.: 20141203-IR-140140375RFAFiled 10/5/2017, 9:34 a.m.: 20171101-IR-140160492FRAReadopted filed 9/3/2020, 10:16 a.m.: 20200930-IR-140200090RFA