§ 1025.4. Applications to self-insure.
(a) A taxicab or limousine certificate holder may file an application with the Authority to act as self-insurer of all or part of its bodily injury, property damage or cargo damage claims. In support of its application, the applicant shall submit a true and accurate statement of its financial condition which establishes its capability to satisfy its insurance obligations as they become due, a self-insurance plan which includes adequate security to protect the public and a description of its safety program including its past accident record. A self-insurance applicant shall agree in the application to grant the Authority power to rescind approval of self-insurer status, without hearing, if the Authority determines that the public interest demands it.
(b) In reviewing self-insurance applications, the Authority will examine the following factors in determining whether approval will be granted:
(1) The net worth of the certificate holder in relationship to the size of its operation and the nature and extent of its request for self-insurer status. The evidence must demonstrate the certificate holder’s financial capability to adjust and pay insurance obligations as they become due before approval will be granted.
(2) The organization of the certificate holder’s proposed self-insurance program including the adequacy of security to protect the public. Security may be in the form, but is not limited to, one or more of the following:
(i) Reserves.
(ii) Sinking funds.
(iii) Third party financial guarantees.
(iv) Parent company or affiliate sureties.
(v) Excess insurance coverage.
(vi) Other similar arrangements.
(3) The effectiveness of the certificate holder’s safety program. The Authority will look closely at the average number and average cost of accident losses over the past three years in determining whether self-insurance is feasible.
(c) Authority approval of a self-insurance application may be made conditional on revisions in the applicant’s proposed self-insurance plan, safety program or standards for adjustment and payment of claims, as well as requirements of periodic financial filings with the Authority.
(d) Authority approval of self-insurance status is subject to the issuance of a self-insurance certificate to the motor carrier by the Department of Transportation as required under 67 Pa. Code § 223.5 (relating to certificate) for vehicles registered in this Commonwealth.
Cross References This section cited in 52 Pa. Code § 1025.3 (relating to insurance required); and 52 Pa. Code § 1065.1 (relating to limousine insurance).
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