VEHICLE CODE
SECTION 16500-16503
16500.  Every owner of a vehicle used in the transportation ofpassengers for hire, including taxicabs, when the operation of thevehicle is not subject to regulation by the Public UtilitiesCommission, shall maintain, whenever he or she may be engaged inconducting those operations, proof of financial responsibilityresulting from the ownership or operation of the vehicle and arisingby reason of personal injury to, or death of, any one person, of atleast fifteen thousand dollars ($15,000), and, subject to the limitof fifteen thousand dollars ($15,000) for each person injured orkilled, of at least thirty thousand dollars ($30,000) for the injuryto, or the death of, two or more persons in any one accident, and fordamages to property of at least five thousand dollars ($5,000)resulting from any one accident. Proof of financial responsibilitymay be maintained by either: (a) Being insured under a motor vehicle liability policy againstthat liability. (b) Obtaining a bond of the same kind, and containing the sameprovisions, as those bonds specified in Section 16434. (c) By depositing with the department thirty-five thousand dollars($35,000), which amount shall be deposited in a special depositaccount with the Controller for the purpose of this section. (d) Qualifying as a self-insurer under Section 16053. The department shall return the deposit to the person entitledthereto when he or she is no longer required to maintain proof offinancial responsibility as required by this section or upon his orher death.16500.5.  (a) Except as specified in subdivision (b), the owner ofthe following commercial vehicles shall maintain proof of financialresponsibility in the amount required by the director: (1) A vehicle used to carry passengers for hire, except taxicabsas defined in subdivision (c) of Section 27908. (2) A vehicle having an unladen weight of over 7,000 pounds whichis used in the transportation of property in the conduct of abusiness. (b) Subdivision (a) does not apply to the following vehicles: (1) A schoolbus. (2) A motor vehicle used by a farmer exclusively in thetransportation of his or her livestock, implements of husbandry, andagricultural commodities or in the transportation of supplies to hisor her farm. (3) A motor vehicle used by a resident farmer of this state tooccasionally transport from the place of production to a warehouse,regular market, place of storage, or place of shipment the farmproducts of neighboring farmers in exchange for like services, farmproducts, or other compensation. (4) A vehicle used in for-hire transportation which is subject toregulation by the Public Utilities Commission. (5) A rented vehicle used for noncommercial transportation ofproperty. (c) The director shall establish the amounts which are determinedadequate to cover damages resulting from the ownership or operationof a commercial vehicle or vehicles subject to this section arisingby reason of personal injury to, or death of, any person or damage toproperty, or both. The director shall establish the amounts atlevels equal to those prescribed by the Public Utilities Commissionfor owners and operators of for-hire vehicles subject to itsjurisdiction and control. (d) Proof of financial responsibility may be maintained by any ofthe following: (1) Being insured under one or more motor vehicle liabilitypolicies against that liability. (2) Obtaining a bond of the same kind, and containing the sameprovisions, as those bonds specified in Section 16434. (3) By depositing with the department five hundred thousanddollars ($500,000), which amount shall be deposited in a specialdeposit 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 toparagraph (3) of subdivision (d) to the person entitled thereto whenthe owner is no longer required to maintain proof of financialresponsibility as required by this section or upon the owner's death. (f) An insurer, agent, or broker who has been incorrectly informedby an owner of a vehicle or his or her representative that thevehicle is 7,000 pounds or less unladen weight, or is incorrectlyinformed by the owner or his or her representative that the vehicleis exempt from the requirements of subdivisions (a) and (c) pursuantto the exemptions set forth in subdivision (b), may issue a policy ofmotor vehicle liability insurance in any amount less than thatrequired by the director but not less than the amounts required underSection 16451. The policy of motor vehicle liability insurance whenissued shall not be deemed to provide liability coverage amountsgreater than that specifically set forth in the policynotwithstanding that the vehicle weighs in excess of 7,000 poundsunladen weight or is subsequently used in a manner which would haverequired the vehicle to be insured in the amounts established by thedirector pursuant to subdivision (c).16501.  The provisions of this chapter shall not prevent localauthorities, within the reasonable exercise of the police power, fromadopting rules and regulations, by ordinance or resolution,licensing and regulating the operation of any vehicle for hire andthe drivers of passenger vehicles for hire.16502.  (a) An owner shall not use, or with his or her consentpermit the use of, a vehicle used in the transportation of persons orproperty in the conduct of a business, without maintaining proof offinancial responsibility as required by this chapter. (b) A motor vehicle from another country in which there is noevidence of financial responsibility required pursuant to thischapter or Part 387 (commencing with Section 387.1) of Title 49 ofthe Code of Federal Regulations shall be denied entry into the state.16503.  The department shall suspend the registration of allvehicles used in the transportation of persons or property in theconduct of a business, except vehicles subject to regulation by thePublic Utilities Commission, which are registered in the name of anyperson convicted of violating Section 16502 immediately upon receiptof a duly certified abstract of the record of the court in which theperson was convicted. The suspension shall remain in effect and no such vehicle shall beregistered in the name of the person until he or she gives thedepartment proof of his or her financial responsibility as requiredby Section 16500.