Self-insurance

Self-insurance. (1) The department shall issue a certificate of self-insurance to a person under the following conditions: (a) The person owns more than 25 motor vehicles which are registered in Wisconsin; (b) An application for self-insurance is completed, and (c) The person’s application and a financial statement, signed during the last calendar year, indicate that the person has and will continue to have the ability to pay judgments arising out of motor vehicle accidents. (2) Self-insurance certificates shall be issued for a period of one year. (3) Renewal of a certificate requires submittal of a new self-insurance application and a financial statement. (4) (a) A person shall be considered to have the ability to pay judgments arising out of motor vehicle accidents if the person has unencumbered assets of at least the sum of multiple injury minimum coverage plus property damage minimum coverage times the square root of the total number of motor vehicles owned by the person and operated on Wisconsin highways, is paying creditors as the person’s debts become due, and does not have any judgment, fine or forfeiture that has remained unpaid more than 30 days. (b) In this subsection: 1. “Unencumbered assets” means the net worth of the person less the sum of all contingencies and reserved capital. 2. “Contingencies” means events that have occurred, or that are likely to occur, that if included in the financial statements of the person, would have a material effect on the financial position of that person. 3. “Reserved capital” means any amount reserved by management as required by contract or reserved for a specific activity. (c) Evidence that a person has the ability to pay judgments shall be provided in the form of audited financial statements or on a United States securities and exchange commission form 10K filing.