Vehicles: financial responsibility: self-insurance.

Existing law requires all drivers and all owners of a motor vehicle to be able to establish financial responsibility, including, among other methods, as a self-insurer, as specified. Existing law authorizes the Department of Motor Vehicles, upon application, to issue a certificate of self-insurance to an applicant who has, among other requirements, more than 25 motor vehicles registered in their name. Existing law authorizes the director of the department to adopt and enforce rules and regulations as may be necessary to carry out the provisions of the Vehicle Code relating to the department. Existing regulations provide for the requirements to qualify as a self-insurer, including that the applicant provide an audited financial statement of the applicant's net worth, as specified, that the audited financial statements cover a 3-year period immediately preceding the date of application, and that the audited financial statements include an opinion of the applicant's net worth and reflect a net worth of not less than $2,200,000 on the date of application. This bill would place in the Vehicle Code specified requirements to qualify as a self-insurer, including an option for an applicant to provide a cash deposit or surety bond in specified amounts. The bill would require the applicant to maintain an insurance policy with certain entities, including a company licensed to provide insurance in California and nonadmitted insurers, as specified.