CHAPTER 3. AIRCRAFT FINANCIAL RESPONSIBILITY ACT
IC 8-21-3
Chapter 3. Aircraft Financial Responsibility Act
IC 8-21-3-1
Definitions
Sec. 1. The following words and phrases when used in this
chapter shall, for the purpose of this chapter, unless a different
meaning appears from the context, have the following meanings:
(1) The singular shall include the plural; the masculine shall
include the feminine and neuter, as requisite.
(2) "Aircraft" means any contrivance now known, or hereafter
invented, used or designed for navigation of or flight in the air.
(3) "Aircraft accident" means any mishap involving an aircraft
resulting in injury or damage to such aircraft or to any person,
property or thing.
(4) "Department" refers to the Indiana department of
transportation; and "state" or "this state" means the state of
Indiana.
(5) "Guest" means any person who rides in an aircraft for which
no charge is made for such ride or flight.
(6) "Insured" means the person in whose name there is issued
an aircraft liability policy (as defined in section 12 of this
chapter) and any other person insured under the terms of such
policy.
(7) "Judgment" means any judgment, except a judgment
rendered against this state or any political subdivision thereof
or any municipality therein, which shall have become final by
expiration without appeal of the time within which appeal might
have been perfected, or by final affirmation on appeal, rendered
by a court of competent jurisdiction of any state or of the
United States.
(8) "Operation of aircraft" or "operate aircraft" means the use
of aircraft for the purpose of air navigation, and includes the
navigation or piloting of aircraft. Any person who causes or
authorizes the operation of aircraft, whether with or without the
right of legal control (in the capacity of owner, lessee, or
otherwise) of the aircraft, shall be deemed to be engaged in the
operation of aircraft within the meaning of the statutes of this
state.
(9) "Operator" means any person who is in actual physical
control of an aircraft.
(10) "Owner" means any person in whose name the aircraft is
certificated, licensed, or registered by appropriate federal or
state authority.
(11) "Passenger" means any person in, on or boarding an
aircraft for the purpose of riding therein, or alighting therefrom,
following a flight or attempted flight therein.
(12) "Person" means any individual, firm, partnership,
corporation, company, limited liability company, association,
joint stock association, or body politic; and includes any trustee,
receiver, assignee, or other similar representative thereof.
(13) "Policy" or "insurance policy" means an aircraft liability
policy conforming to section 12 of this chapter.
(Formerly: Acts 1951, c.267, s.1; Acts 1953, c.85, s.1.) As amended
by Acts 1980, P.L.74, SEC.316; P.L.18-1990, SEC.156; P.L.8-1993,
SEC.148.
IC 8-21-3-2
Proof of financial responsibility
Sec. 2. The department may require proof of financial
responsibility for a period of one (1) year in the manner provided for
in this chapter.
(Formerly: Acts 1951, c.267, s.2.) As amended by Acts 1980, P.L.74,
SEC.317.
IC 8-21-3-3
Report of accidents
Sec. 3. Any person who, while operating any aircraft, shall have
been involved in any aircraft accident in this state resulting in bodily
injury or death, or in damage to property of another in excess of one
hundred dollars ($100) or the owner of such aircraft, shall within ten
(10) days following such aircraft accident report the same to the
department. Aircraft accident reports, as herein required, shall be
submitted in such form as the department may prescribe.
(Formerly: Acts 1951, c.267, s.3; Acts 1953, c.85, s.2.) As amended
by Acts 1980, P.L.74, SEC.318.
IC 8-21-3-4
Reports; security
Sec. 4. (a) The department may require, within not less than ten
(10) days nor more than sixty (60) days after an aircraft accident
from any person, who, while operating any aircraft shall have been
involved in any aircraft accident resulting in bodily injury or death
to any person other than a guest passenger of such aircraft or in
damage to property of another, other than property owned, rented,
occupied, or used by, or in the care, custody or control of the owner
or operator or carried in or on the aircraft, in excess of one hundred
dollars ($100), or, in the discretion of the department, the owner of
such aircraft, or both, secured sufficient in the discretion of the
department to indemnify the injured party against loss and guarantee
the payment and satisfaction of any judgment or judgments for
damages resulting from such accident as may be recovered against
such owner or operator by or on behalf of the injured person or his
legal representative, and in addition thereto, the department may
require such operator, or in the department's discretion, the owner of
such aircraft, or both, to file proof of financial responsibility for a
period of one (1) year following the date of the accident: Provided,
however, that if such owner operator shall satisfy the department that
the liability, if any, for damages resulting from such accident is
insured by an insurance policy or bond, the department shall not
require security from such owner operator.
(b) Such security, where ordered, shall be in such form and in
such amount as the department may require, but in no case in excess
of the amount of proof required by section 8 of this chapter. The
department may modify the amount of security ordered in any case,
if after further investigation it shall determine that the amount
ordered is improper.
(Formerly: Acts 1951, c.267, s.4; Acts 1953, c.85, s.3.) As amended
by Acts 1980, P.L.74, SEC.319.
IC 8-21-3-5
Injunction of operation of aircraft
Sec. 5. If the person required to furnish proof of financial
responsibility in the future or if the person required to furnish
financial security under this chapter, neglects or refuses to comply
with such requirements, the department, the attorney general or the
prosecuting attorney of the county in which such party resides, may,
in accordance with the laws of the state of Indiana governing
injunctions, maintain an action in the name of the state of Indiana to
enjoin such person neglecting or refusing to comply with the
financial responsibility or security requirements of this chapter from
engaging in the operation of any aircraft or causing to be operated
any aircraft within this state until such person has complied with
such requirements or until such person has, by final judicial
determination, been proved not legally liable for, or has been
released from all liability for damages resulting from such aircraft
accident.
(Formerly: Acts 1951, c.267, s.5.) As amended by Acts 1980, P.L.74,
SEC.320.
IC 8-21-3-6
Payment from security deposit; information regarding security
Sec. 6. (a) Security furnished in compliance with the requirements
of this chapter shall be placed by the department in the custody of the
treasurer of state and shall be applicable only to the payment of a
judgment against the depositor for damages arising out of the
accident in question in an action at law in a court of this state begun
not later than one (1) year after the date of such accident or, upon
assignment of the depositor. All such payments made out of the
deposited security shall be made as follows:
(1) Payment shall first be made to each of the judgment
creditors in the order of judgment entry and to each of the
claimants who have agreed to settle their claims, whose
damages were evaluated by the department, in an amount not
greater than the amount fixed in their respective evaluations.
(2) Whenever the department shall be given evidence,
satisfactory to it, that the amounts of all claims for damages
against the depositor arising out of such accident are fixed,
either by judgment or settlement agreement, payment shall be
made out of any balance remaining after the first distribution to
each of those persons whose judgments or settlement amounts
have not been fully paid but whose damages were evaluated by
the department, in proportion to the amounts of their respective
evaluations unless there is a sufficient amount to make payment
in full.
(3) Any balance remaining after the first and second
distributions are completed shall be paid to those judgment
creditors and those claimants who have agreed to settle their
claims but whose damages were not evaluated, in proportion to
the amounts of their respective judgments or settlement
amounts unless there is a sufficient amount to make payment in
full.
Such deposit, or any balance thereof, shall be returned to the
depositor or his personal representative whenever after the expiration
of such year the department shall be given evidence, satisfactory to
it, that there is no such judgment unsatisfied and that there is no
pending action against the depositor for damages arising out of such
accident.
(b) Neither the action taken by the department pursuant to this
chapter, the findings, if any, of the department upon which such
action is based, nor the security filed by the owner or operator as
provided in this chapter shall be referred to in any way, nor be any
evidence of the negligence or due care of either party at the trial of
any action at law to recover damages.
(c) In lieu of deposit of security when required pursuant to this
chapter the aircraft owner or operator may, if the person who has
sustained bodily injury, including death, or damage to his property
or his legal representative consents, effect and deliver a consent
judgment or release for such amount and payable when and in such
installments as the judgment creditor or claimant may agree to. In the
event the judgment debtor fails to pay any installment as agreed, then
upon notice of such default, the department, the attorney-general, or
the prosecuting attorney may pursuant to section 5 of this chapter
maintain an action to enjoin such person from engaging in the
operation of any aircraft or causing to be operated any aircraft within
this state until such judgment is appropriately satisfied as required
herein.
(d) Information regarding security taken under this section shall
be available to the person injured or the representative of any person
killed and their duly authorized agents or attorney.
(Formerly: Acts 1951, c.267, s.6.) As amended by Acts 1980, P.L.74,
SEC.321; P.L.1-1993, SEC.51.
IC 8-21-3-7
Nonresidents
Sec. 7. (a) The provisions of this chapter shall apply to any person
who is not a resident of this state under the same circumstances as
they would apply to a resident, and, in such event, such a nonresident
shall not operate any aircraft in this state nor shall any aircraft owned
by him be operated in this state, unless and until such nonresident, or
the owner of the aircraft, if another person, has complied with the
requirements of this chapter with respect to security and proof of
financial responsibility covering such aircraft.
(b) The operation by a nonresident, or by his duly authorized
agent, of an aircraft in this state shall be deemed equivalent to an
appointment by such nonresident of the secretary of state, or his
successor in office, to be his true and lawful attorney upon whom
may be served all lawful processes in any action or proceeding
against him, growing out of any aircraft accident in which such
nonresident may be involved while so operating or so permitting to
be operated an aircraft in this state, and such operation shall be
signification of his agreement that any such process against him,
which is so served, shall be of the same legal force and validity as if
served upon him personally. Such action may be filed in the county
of the residence of the plaintiff or in the county where the accident
occurred, at the election of the plaintiff, and service of such process
shall be made by leaving a copy thereof, with a fee of two dollars
($2), for such defendant to be served, with the secretary of state, or
in his office, and such service shall be sufficient service upon such
nonresident, provided that notice of such service and a copy of the
process are forthwith sent by registered mail to the defendant and the
defendant's return receipt is appended to the original process and
filed therewith in the court. In the event that the defendant refuses to
accept or claim such registered mail, then such registered mail shall
be returned by the secretary of state to the plaintiff or to his attorney,
and the same shall be appended to the original process, together with
an affidavit of the plaintiff or of his attorney or agent to the effect
that such summons was delivered to the secretary of state, together
with a fee of two dollars ($2), and was thereafter returned unclaimed
by the postoffice department, and such affidavit, together with the
returned affidavit including said summons, shall be considered
sufficient service upon such nonresident defendant. The court in
which the action is brought may order such continuances as may be
reasonable to afford the defendant opportunity to defend the action.
(c) No insurance policy or bond shall be effective under section
4 of this chapter in the case of an aircraft owned or operated by a
nonresident in this state at the time of the accident or at the effective
date of the policy or bond, or the most recent renewal thereof, unless
the insurance company or surety company, if not authorized to do
business in this state, shall execute a power of attorney authorizing
the secretary of state to accept service on its behalf of notice or
process in any action upon such policy or bond arising out of such
accident.
(Formerly: Acts 1951, c.267, s.7; Acts 1953, c.85, s.4.) As amended
by P.L.66-1984, SEC.137.
IC 8-21-3-8
Proof of financial responsibility defined
Sec. 8. Proof of financial responsibility shall mean proof of ability
to respond in damages for liability thereafter incurred, arising out of
the ownership, maintenance or use of an aircraft, in the amount of ten
thousand dollars ($10,000) because of bodily injury to or death of
any one (1) person, and, subject to said limit respecting one (1)
person, in the amount of twenty thousand dollars ($20,000) because
of bodily injury or death of two (2) or more persons in any one (1)
accident, and in the amount of twenty thousand dollars ($20,000)
because of injury to or destruction of property in any one (1)
accident. Such proof in such amounts shall be furnished for each
aircraft owned by such person and operated in this state.
(Formerly: Acts 1951, c.267, s.8.)
IC 8-21-3-9
Methods of proof
Sec. 9. Proof of financial responsibility when required under this
chapter may be given by the following alternate methods, either by
proof:
(1) that a policy or policies of aircraft liability insurance have
been obtained and are in full force and effect;
(2) that a bond has been duly executed; or
(3) that deposit has been made of money or securities;
all as provided in this chapter.
(Formerly: Acts 1951, c.267, s.9.) As amended by P.L.66-1984,
SEC.138.
IC 8-21-3-10
Filing of insurance certificates
Sec. 10. (a) Proof of financial responsibility may be made by
filing with the department the written certificate or certificates of any
insurance carrier certifying that it has issued to or for the benefit of
the person furnishing such proof and named as the insured, an
aircraft liability policy or policies meeting the requirements of this
chapter, and such other information as the department may require.
(b) When the person required to give proof of financial
responsibility, is not the owner of an aircraft, then an operator's
policy of liability insurance as defined in this chapter shall be
sufficient proof of financial responsibility.
(Formerly: Acts 1951, c.267, s.10.) As amended by Acts 1980,
P.L.74, SEC.322.
IC 8-21-3-11
Default of foreign insurance carrier
Sec. 11. If any foreign insurance carrier which has furnished proof
of financial responsibility defaults in any said undertakings or
agreements, the department shall not thereafter accept any certificate
of said carrier whether theretofore filed or thereafter tendered as
proof of financial responsibility so long as such default continues.
(Formerly: Acts 1951, c.267, s.11.) As amended by Acts 1980,
P.L.74, SEC.323.
IC 8-21-3-12
"Aircraft liability policy" defined
Sec. 12. An aircraft liability policy as said term is used in this
chapter, shall mean an owner's policy of liability insurance or an
operator's policy of liability insurance for which a certificate has
been filed with the department by an insurance carrier authorized to
do business in this state pursuant to the insurance laws of this state
for the benefit of the person named therein as insured; which policy
shall contain the terms, conditions and provisions required by the
laws of this state and with sufficient liability coverage to meet the
security and proof of financial responsibility requirements
established within the purview of section 4 and pursuant to this
chapter by the department as a result of an aircraft accident occurring
within this state and shall be approved by the insurance
commissioner of the state of Indiana.
(Formerly: Acts 1951, c.267, s.12; Acts 1953, c.85, s.5.) As amended
by Acts 1980, P.L.74, SEC.324.
IC 8-21-3-13
Certificate of issuance of insurance policy
Sec. 13. An insurance carrier which has issued an aircraft liability
policy or policies meeting the requirements of this chapter shall,
upon request of the named insured, deliver to such insured for filing
or at the request of such insured shall file direct with the department,
an appropriate certificate showing that such policy or policies have
been issued, which certificate shall meet the requirements of this
chapter. The issuance of a certificate to serve as proof of financial
responsibility under this chapter shall be conclusive evidence that
every aircraft liability policy therein cited conforms to all the
requirements of this chapter.
(Formerly: Acts 1951, c.267, s.13.) As amended by Acts 1980,
P.L.74, SEC.325.
IC 8-21-3-14
Notice of cancellation
Sec. 14. When an insurance carrier has certified an aircraft
liability policy under this chapter for the purpose of furnishing
evidence of future financial responsibility, it shall give ten (10) days'
written notice to the department before effecting a cancellation of
such policy and the policy shall continue in full force and effect until
the date of such cancellation specified in such notice or until its
expiration.
(Formerly: Acts 1951, c.267, s.14.) As amended by Acts 1980,
P.L.74, SEC.326.
IC 8-21-3-15
Bond giving proof of financial responsibility
Sec. 15. (a) A person required to give proof of financial
responsibility may file with the department a bond meeting the
requirements of this section. Such bond shall be executed by the
person giving such proof and by a surety company duly authorized
to transact business in this state pursuant to the laws of this state.
(b) The department shall not accept any such bond unless it is
conditioned for payments in amounts and under the same
circumstances as would be required in an aircraft liability policy
furnished by the person giving such proof under this chapter.
(c) No such bond shall be cancelled unless ten (10) days' prior
written notice of cancellation is given the department but
cancellation of such bond shall not prevent recovery thereon with
respect to any right or cause of action arising prior to the date of
cancellation.
(d) If a judgment is rendered against the principal of any such
surety bond upon a liability covered by the conditions of such bond
and such judgment is not satisfied within sixty (60) days after it
becomes final, the department may require the judgment creditor to
bring an action or actions, at his sole expense, against the company
or person which executed such bond for the recovery of said
judgment.
(Formerly: Acts 1951, c.267, s.15; Acts 1953, c.85, s.6.) As amended
by Acts 1980, P.L.74, SEC.327.
IC 8-21-3-16
Deposit with treasurer giving proof of financial responsibility
Sec. 16. (a) A person may give proof of financial responsibility by
delivering to the department a receipt of the treasurer of this state
showing a deposit with said treasurer of an amount consistent with
the provisions of section 8 of this chapter in cash or of securities
such as may legally be purchased at savings banks or for trust funds
of a market value in the full amount required.
(b) All moneys or securities so deposited shall be subject to
execution to satisfy any judgment mentioned in this chapter or
settlement agreed upon, but shall not otherwise be subject to
attachment or execution.
(c) The state treasurer shall not accept any such deposit or issue
a receipt therefor, and the department shall not accept such receipt,
unless accompanied by evidence that there are no unsatisfied
judgments of record against the depositor in the county where the
depositor resides, for which he is not exempt.
(Formerly: Acts 1951, c.267, s.16.) As amended by Acts 1980,
P.L.74, SEC.328.
IC 8-21-3-17
Substitution of proof of financial responsibility
Sec. 17. The department shall cancel any bond or return any
certificate of insurance, or the department shall direct and the state
treasurer shall return any money or securities, to the person entitled
thereto, upon the substitution and acceptance of other adequate proof
of financial responsibility pursuant to this chapter.
(Formerly: Acts 1951, c.267, s.17.) As amended by Acts 1980,
P.L.74, SEC.329.
IC 8-21-3-18
Inadequate security; requiring alternative security
Sec. 18. Whenever any proof of financial responsibility filed by
any person under this chapter no longer fulfills the purpose for which
required, the department shall, for the purpose of this chapter, require
other proof of financial responsibility as required by this chapter.
(Formerly: Acts 1951, c.267, s.18.) As amended by Acts 1980,
P.L.74, SEC.330.
IC 8-21-3-19
Cancellation; waiver of proof of financial responsibility
Sec. 19. The department shall upon request cancel any bond or
return any certificate of insurance, or the department shall direct and
the state treasurer shall return to the person entitled thereto any
money or securities, deposited pursuant to this chapter as proof of
financial responsibility or waive the requirement of filing proof of
financial responsibility when the purposes for the requiring of such
proof have been satisfied.
(Formerly: Acts 1951, c.267, s.19.) As amended by Acts 1980,
P.L.74, SEC.331.
IC 8-21-3-19.5
Aircraft rental; notice of insurance coverage
Sec. 19.5. (a) Each person offering an aircraft for rental shall, at
the time the aircraft is rented, provide the renter of the aircraft with
written notice of the nature and extent of any insurance covering the
aircraft as specified in subsection (b).
(b) The form of the notice required by subsection (a) must be as
follows:
NOTICE OF INSURANCE COVERAGE
As a renter of aircraft, you are hereby notified that:
(1) You (are)(are not) (strike phrase not applicable) insured under a policy or policies of insurance provided by the undersigned and providing liability coverage to renters of aircraft. If coverage is provided, it is in the amount of $ _____.
(a) The above insurance is subject to a deductible amount of $ _____.
(2) You (are)(are not) (strike phrase not applicable) insured for hull damage to the aircraft. If hull insurance is provided, it is in the amount of $ ____.
(a) The above insurance is subject to a deductible amount of $ ____.
(3) Although insurance may be provided for liability or hull coverage (or both), the undersigned's insurance carrier has full rights to subrogate against you for any payments it may be required to make on account of any damage or loss arising out of your operation of the aircraft. It is suggested that you carry insurance to protect you to partially or fully cover this possibility.
_________________________________________
(Signature of Person or Officer of
Company Renting Aircraft)
Dated _________________________, 20______
(Month) (Day) (Year)
I acknowledge receipt of this notice of insurance coverage.
Dated ________________________, 20______
(Month) (Day) (Year)
(c) The notice required by this section constitutes a part of a rental agreement, whether written or oral. Each renter must provide written acknowledgment of receipt of the notice.
(d) Receipt of notice under this section constitutes notice for a subsequent rental of the same aircraft to the same person unless the amount of insurance coverage has been reduced or eliminated (as specified in the original notice), in which case a new notice is required.
(e) A person offering an aircraft for rental shall maintain a copy of the notice provided to each renter for at least three (3) years from the date of the last rental to that renter.
(f) A person offering an aircraft for rental who fails to provide notice as required by this section commits a Class A infraction.
As added by P.L.120-1989, SEC.1. Amended by P.L.2-2005, SEC.28.
IC 8-21-3-20
Violations; penalties
Sec. 20. A person who fails to submit an accident report to the
department as provided in section 3 of this chapter commits a Class
C infraction.
(Formerly: Acts 1951, c.267, s.20.) As amended by Acts 1978, P.L.2,
SEC.860; Acts 1980, P.L.74, SEC.332.
IC 8-21-3-21
Construction of chapter
Sec. 21. This chapter shall not be construed to prevent the
plaintiff in any action at law from relying upon other security or
upon the other processes provided by law.
(Formerly: Acts 1951, c.267, s.22.) As amended by P.L.66-1984,
SEC.139.
IC 8-21-3-22
Certificate of self-insurance
Sec. 22. (a) The department may, in its discretion, upon the
application of such a person issue a certificate of self-insurance when
it is reasonably satisfied that such person is possessed of and will
continue to be possessed of financial ability to respond to judgments,
as hereinbefore described, obtained against such person, arising out
of the ownership, maintenance, use or operation of any such person's
aircraft.
(b) Upon not less than five (5) days' notice and a hearing pursuant
to such notice, the department may, in its discretion and upon
reasonable grounds, cancel a certificate of self-insurance.
(Formerly: Acts 1951, c.267, s.24.) As amended by Acts 1980,
P.L.74, SEC.333.
IC 8-21-3-23
Title
Sec. 23. This chapter shall be known and may be cited as the
Indiana Aircraft Financial Responsibility Act.
(Formerly: Acts 1951, c.267, s.25.) As amended by P.L.66-1984,
SEC.140.