Introduced Version
HOUSE BILL No. 1092
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-21-3.
Synopsis: Financial responsibility for aircraft. Amends the definition
of "operation of aircraft" or "operate aircraft" for purposes of the
aircraft financial responsibility act. Provides that the Indiana
department of transportation (department) shall require proof of
financial responsibility for a period of one year. (Current law provides
that the department may require proof of financial responsibility for a
period of one year.) Increases the minimum amount of loss resulting
from bodily injury, death, or property damage in an aircraft accident
required to be reported to the department from $100 to $7,500.
Requires certain information to be included in a report of an aircraft
accident. Removes the department from a provision allowing certain
entities to maintain an action to enjoin a person from engaging in the
operation of an aircraft for failure to comply with the aircraft financial
responsibility requirements. Specifies how payments shall be made
from a security deposit. Specifies the fee for service of process on the
secretary of state. Adds an additional insured to certain provisions in
the aircraft financial responsibility act. Makes corresponding changes.
Makes technical corrections.
Effective: January 1, 2025.
Mayfield
January 8, 2024, read first time and referred to Committee on Roads and Transportation.
2024 IN 1092—LS 6316/DI 141 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1092
A BILL FOR AN ACT to amend the Indiana Code concerning
transportation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 8-21-3-1, AS AMENDED BY P.L.136-2018,
2 SECTION 102, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE JANUARY 1, 2025]: Sec. 1. The following words and
4 phrases when used in this chapter shall, for the purpose of this chapter,
5 unless a different meaning appears from the context, have the following
6 meanings:
7 (1) The singular shall include the plural; the masculine shall
8 include the feminine and neuter, as requisite.
9 (2) "Aircraft" means any contrivance used or designed for
10 navigation of or flight in the air.
11 (3) "Aircraft accident" means any mishap involving an aircraft
12 resulting in injury or damage to such aircraft or to any person,
13 property, or thing.
14 (4) "Department" refers to the Indiana department of
15 transportation; and "state" or "this state" means the state of
16 Indiana.
17 (5) "Guest" means any person who rides in an aircraft for which
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1 no charge is made for such ride or flight.
2 (6) (5) "Insured" means the person in whose name there is issued
3 an aircraft liability policy (as defined in section 12 of this chapter)
4 and any other person insured under the terms of such policy.
5 (7) (6) "Judgment" means any judgment, except a judgment
6 rendered against this state or any political subdivision of this state
7 or any municipality in this state, which shall have become final by
8 expiration without appeal of the time within which appeal might
9 have been perfected, or by final affirmation on appeal, rendered
10 by a court of competent jurisdiction of any state or of the United
11 States.
12 (8) (7) "Operation of aircraft" or "operate aircraft" means the use
13 of aircraft for the purpose of air navigation, and includes the
14 navigation or piloting of aircraft. Any person who causes or
15 authorizes the operation of aircraft, whether with or without the
16 right of legal control (in the capacity of owner, lessee, aircraft
17 sales broker, or otherwise) of the aircraft, including an aircraft
18 otherwise considered inventory, if it is operated in flight, shall be
19 deemed to be engaged in the operation of aircraft within the
20 meaning of the statutes of this state.
21 (9) (8) "Operator" means any person who is in actual physical
22 control of an aircraft.
23 (10) (9) "Owner" means any person in whose name the aircraft is
24 certificated, licensed, or registered by appropriate federal or state
25 authority.
26 (11) "Passenger" means any person:
27 (A) in, on or boarding an aircraft for the purpose of riding in
28 the aircraft; or
29 (B) alighting from the aircraft following a flight or attempted
30 flight of the aircraft.
31 (12) (10) "Person" means any individual, firm, partnership,
32 corporation, company, limited liability company, association, joint
33 stock association, or body politic; and includes any trustee,
34 receiver, assignee, or other similar representative of an entity
35 described in this subdivision.
36 (13) (11) "Policy" or "insurance policy" means an aircraft liability
37 policy conforming to section 12 of this chapter.
38 (14) (12) "Proof of financial responsibility" has the meaning set
39 forth in section 8 of this chapter.
40 SECTION 2. IC 8-21-3-2 IS AMENDED TO READ AS FOLLOWS
41 [EFFECTIVE JANUARY 1, 2025]: Sec. 2. The department may shall
42 require proof of financial responsibility for a period of one (1) year in
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1 the manner provided for in this chapter.
2 SECTION 3. IC 8-21-3-3 IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE JANUARY 1, 2025]: Sec. 3. (a) Any person who, while
4 operating any aircraft, shall have been involved in any aircraft accident
5 in this state resulting in bodily injury or death, or in damage to property
6 of another in excess of one hundred seven thousand five hundred
7 dollars ($100) ($7,500) or the owner of such aircraft, shall within ten
8 (10) days following such aircraft accident report the same to the
9 department. Aircraft accident reports, as herein required, shall be
10 submitted in such form as the department may prescribe.
11 (b) A report of an aircraft accident under this section must
12 include the following information:
13 (1) Name of the operator of the aircraft.
14 (2) Name of the owner of the aircraft.
15 (3) Means of financial responsibility and financial assurance.
16 (4) Date of the accident.
17 (5) Location of the accident.
18 (6) Federal Aviation Administration registration number.
19 SECTION 4. IC 8-21-3-4 IS AMENDED TO READ AS FOLLOWS
20 [EFFECTIVE JANUARY 1, 2025]: Sec. 4. (a) The department may
21 shall require, within not less than ten (10) days nor more than sixty
22 (60) days after an aircraft accident from any person, who, while
23 operating any aircraft shall have been involved in any aircraft accident
24 resulting in bodily injury or death to any person other than a guest
25 passenger of such aircraft or in damage to property of another, other
26 than property owned, rented, occupied, or used by, or in the care,
27 custody or control of the owner or operator or carried in or on the
28 aircraft, in excess of one hundred seven thousand five hundred
29 dollars ($100), ($7,500), or, in the discretion of the department, the
30 owner of such aircraft, or both, secured security sufficient in the
31 discretion of the department to indemnify the injured party against loss
32 and guarantee the payment and satisfaction of any judgment or
33 judgments for damages resulting from such accident as may be
34 recovered against such owner or operator by or on behalf of the injured
35 person or his the injured person's legal representative, and in addition
36 thereto, the department may shall require such operator, or in the
37 department's discretion, the owner of such aircraft, or both, to file proof
38 of financial responsibility for a period of one (1) year following the
39 date of the accident: Provided, however, that if such owner operator
40 shall satisfy the department that the liability, if any, for damages
41 resulting from such accident is insured by an insurance policy or bond,
42 the department shall not require security from such owner operator.
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1 (b) Such security, where ordered, shall be in such form and in such
2 amount as the department may require, but in no case in excess of the
3 amount of proof required by section 8 of this chapter. The department
4 may modify the amount of security ordered in any case, if after further
5 investigation it shall determine that the amount ordered is improper.
6 SECTION 5. IC 8-21-3-5 IS AMENDED TO READ AS FOLLOWS
7 [EFFECTIVE JANUARY 1, 2025]: Sec. 5. If the person required to
8 furnish proof of financial responsibility in the future or if the person
9 required to furnish financial security under this chapter, neglects or
10 refuses to comply with such requirements, the department, the attorney
11 general or the prosecuting attorney of the county in which such party
12 resides, may, in accordance with the laws of the state of Indiana
13 governing injunctions, maintain an action in the name of the state of
14 Indiana to enjoin such person neglecting or refusing to comply with the
15 financial responsibility or security requirements of this chapter from
16 engaging in the operation of any aircraft or causing to be operated any
17 aircraft within this state until such person has complied with such
18 requirements or until such person has, by final judicial determination,
19 been proved not legally liable for, or has been released from all liability
20 for damages resulting from such aircraft accident.
21 SECTION 6. IC 8-21-3-6, AS AMENDED BY P.L.136-2018,
22 SECTION 103, IS AMENDED TO READ AS FOLLOWS
23 [EFFECTIVE JANUARY 1, 2025]: Sec. 6. (a) Security furnished in
24 compliance with the requirements of this chapter shall be placed by the
25 department in the custody of the treasurer of state and shall be
26 applicable only to the payment of a judgment or claimant settlement
27 agreement against the depositor for damages arising out of the
28 accident in question in an action at law in a court of this state begun not
29 later than one (1) year after the date of such accident or, upon
30 assignment of the depositor. All such payments made out of the
31 deposited security shall be made as follows: subject to proration by
32 court order or claimant settlement agreement if there is more than
33 one (1) claimant.
34 (1) Payment shall first be made to each of the judgment creditors
35 in the order of judgment entry and to each of the claimants who
36 have agreed to settle their claims, whose damages were evaluated
37 by the department, in an amount not greater than the amount fixed
38 in their respective evaluations.
39 (2) Whenever the department shall be given evidence, satisfactory
40 to it, that the amounts of all claims for damages against the
41 depositor arising out of such accident are fixed, either by
42 judgment or settlement agreement, payment shall be made out of
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1 any balance remaining after the first distribution to each of those
2 persons whose judgments or settlement amounts have not been
3 fully paid but whose damages were evaluated by the department,
4 in proportion to the amounts of their respective evaluations unless
5 there is a sufficient amount to make payment in full.
6 (3) Any balance remaining after the first and second distributions
7 are completed shall be paid to those judgment creditors and those
8 claimants who have agreed to settle their claims but whose
9 damages were not evaluated, in proportion to the amounts of their
10 respective judgments or settlement amounts unless there is a
11 sufficient amount to make payment in full.
12 Such deposit, or any balance of the amount deposited, shall be returned
13 to the depositor or the depositor's personal representative whenever
14 after the expiration of such year the department shall be given
15 evidence, satisfactory to it, that there is no such judgment unsatisfied
16 and that there is no pending action against the depositor for damages
17 arising out of such accident.
18 (b) Neither the action taken by the department pursuant to this
19 chapter, the findings, if any, of the department upon which such action
20 is based, nor the security filed by the owner or operator as provided in
21 this chapter shall be referred to in any way, nor be any evidence of the
22 negligence or due care of either party at the trial of any action at law to
23 recover damages.
24 (c) In lieu of deposit of security when required pursuant to this
25 chapter the aircraft owner or operator may, if the person who has
26 sustained bodily injury, including death, or damage to the person's
27 property or the person's legal representative consents, effect and deliver
28 a consent judgment or release for such amount and payable when and
29 in such installments as the judgment creditor or claimant may agree to.
30 In the event the judgment debtor fails to pay any installment as agreed,
31 then upon notice of such default, the department, the attorney-general
32 or the prosecuting attorney may pursuant to section 5 of this chapter
33 maintain an action to enjoin such person from engaging in the
34 operation of any aircraft or causing to be operated any aircraft within
35 this state until such judgment is appropriately satisfied as required
36 under this chapter.
37 (d) Information regarding security taken under this section shall be
38 available to the person injured or the representative of any person
39 killed and their duly authorized agents or attorney.
40 SECTION 7. IC 8-21-3-7 IS AMENDED TO READ AS FOLLOWS
41 [EFFECTIVE JANUARY 1, 2025]: Sec. 7. (a) The provisions of this
42 chapter shall apply to any person who is not a resident of this state
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1 under the same circumstances as they would apply to a resident, and,
2 in such event, such a nonresident shall not operate any aircraft in this
3 state nor shall any aircraft owned by him the nonresident be operated
4 in this state, unless and until such nonresident, or the owner of the
5 aircraft, if another person, has complied with the requirements of this
6 chapter with respect to security and proof of financial responsibility
7 covering such aircraft.
8 (b) The operation by a nonresident, or by his the nonresident's duly
9 authorized agent, of an aircraft in this state shall be deemed equivalent
10 to an appointment by such nonresident of the secretary of state, or his
11 the secretary of state's successor in office, to be his the nonresident's
12 true and lawful attorney upon whom may be served all lawful processes
13 in any action or proceeding against him, the nonresident, growing out
14 of any aircraft accident in which such nonresident may be involved
15 while so operating or so permitting to be operated an aircraft in this
16 state, and such operation shall be signification of his the nonresident's
17 agreement that any such process against him, the nonresident, which
18 is so served, shall be of the same legal force and validity as if served
19 upon him the nonresident personally. Such action may be filed in the
20 county of the residence of the plaintiff or in the county where the
21 accident occurred, at the election of the plaintiff, and service of such
22 process shall be made by leaving a copy thereof, with a the fee of two
23 dollars ($2), set forth in IC 23-0.5-9-56, for such defendant to be
24 served, with the secretary of state, or in his the secretary of state's
25 office, and such service shall be sufficient service upon such
26 nonresident, provided that notice of such service and a copy of the
27 process are forthwith sent by registered mail to the defendant and the
28 defendant's return receipt is appended to the original process and filed
29 therewith in the court. In the event that the defendant refuses to accept
30 or claim such registered mail, then such registered mail shall be
31 returned by the secretary of state to the plaintiff or to his the plaintiff's
32 attorney, and the same shall be appended to the original process,
33 together with an affidavit of the plaintiff or of his the plaintiff's
34 attorney or agent to the effect that such summons was delivered to the
35 secretary of state, together with a the fee of two dollars ($2), set forth
36 in IC 23-0.5-9-56, and was thereafter returned unclaimed by the
37 postoffice department, and such affidavit, together with the returned
38 affidavit including said summons, shall be considered sufficient service
39 upon such nonresident defendant. The court in which the action is
40 brought may order such continuances as may be reasonable to afford
41 the defendant opportunity to defend the action.
42 (c) No insurance policy or bond shall be effective under section 4
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1 of this chapter in the case of an aircraft owned or operated by a
2 nonresident in this state at the time of the accident or at the effective
3 date of the policy or bond, or the most recent renewal thereof, unless
4 the insurance company or surety company, if not authorized to do
5 business in this state, shall execute a power of attorney authorizing the
6 secretary of state to accept service on its behalf of notice or process in
7 any action upon such policy or bond arising out of such accident.
8 SECTION 8. IC 8-21-3-10 IS AMENDED TO READ AS
9 FOLLOWS [EFFECTIVE JANUARY 1, 2025]: Sec. 10. (a) Proof of
10 financial responsibility may be made by filing with the department the
11 written certificate or certificates of any insurance carrier certifying that
12 it has issued to or for the benefit of the person furnishing such proof
13 and named as the insured or additional insured, an aircraft liability
14 policy or policies meeting the requirements of this chapter, and such
15 other information as the department may require.
16 (b) When the person required to give proof of financial
17 responsibility, is not the owner of an aircraft, then an operator's policy
18 of liability insurance as defined in this chapter shall be sufficient proof
19 of financial responsibility.
20 SECTION 9. IC 8-21-3-12 IS AMENDED TO READ AS
21 FOLLOWS [EFFECTIVE JANUARY 1, 2025]: Sec. 12. An aircraft
22 liability policy as said term is used in this chapter, shall mean an
23 owner's policy of liability insurance or an operator's policy of liability
24 insurance for which a certificate has been filed with the department by
25 an insurance carrier authorized to do business in this state pursuant to
26 the insurance laws of this state for the benefit of the person named
27 therein as insured or additional insured; which policy shall contain
28 the terms, conditions and provisions required by the laws of this state
29 and with sufficient liability coverage to meet the security and proof of
30 financial responsibility requirements established within the purview of
31 section 4 of this chapter and pursuant to this chapter by the
32 department as a result of an aircraft accident occurring within this state
33 and shall be approved by the insurance commissioner of the state of
34 Indiana.
35 SECTION 10. IC 8-21-3-13 IS AMENDED TO READ AS
36 FOLLOWS [EFFECTIVE JANUARY 1, 2025]: Sec. 13. An insurance
37 carrier which has issued an aircraft liability policy or policies meeting
38 the requirements of this chapter shall, upon request of the named
39 insured or additional insured, deliver to such insured or additional
40 insured for filing or at the request of such insured or additional
41 insured shall file direct with the department, an appropriate certificate
42 showing that such policy or policies have been issued, which certificate
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1 shall meet the requirements of this chapter. The issuance of a
2 certificate to serve as proof of financial responsibility under this
3 chapter shall be conclusive evidence that every aircraft liability policy
4 therein cited conforms to all the requirements of this chapter.
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