PURPOSE: This rule describes the requirements for use of a surety bond as evidence of financial responsibility.

Editor’s Note: The secretary of state has determined that the publication of this rule in its entirety would be unduly cumbersome or expensive. The entire text of the material referenced has been filed with the secretary of state. This material may be found at the Office of the Secretary of State or at the headquarters of the agency and is available to any interested person at a cost established by state law.

1. (1) An owner or operator may satisfy the financial responsibility requirements of 10 CSR 20-11.093 by obtaining a surety bond that conforms to the requirements of this rule. The surety company issuing the bond must be among those listed as acceptable sureties on federal bonds in the latest Circular 570 of the United States Department of the Treasury.
2. (2) The surety bond shall be worded as specified in 10 CSR 20-11 Appendix, Form 5 (see 10 CSR 20-11.115).
3. (3) Under the terms of the bond, the surety will become liable on the bond obligation when the owner or operator fails to perform as guaranteed by the bond. In all cases the surety’s liability is limited to the per occurrence and annual aggregate penal sums.
4. (4) The owner or operator who uses a surety bond to satisfy the requirements of 10 CSR 20-11.093 shall establish a standby trust fund when the surety bond is acquired. Under the terms of the bond, all amounts paid by the surety under the bond will be deposited directly into the standby trust fund in accordance with instructions from the director under 10 CSR 20-11.108. This standby trust fund shall meet the requirements specified in 10 CSR 20-11.103.

AUTHORITY: sections 319.114, RSMo (Cum. Supp. 1989) and 644.026, RSMo (Cum. Supp. 1993).* Original rule filed Feb. 7, 1991, effective Aug. 30, 1991. *Original authority: 319.114, RSMo (1989) and 644.026, RSMo (1972), amended 1973, 1987, 1993.