1. (1) The department may use any of the following sources of information to determine whether an uninsured operator or owner, based on a preponderance of evidence, is exempt under s. 344.14 (2) (k), Stats., from the security requirements of ch. 344, Stats.:

   1. (a) Operator reports of accidents.
   2. (b) Law enforcement agency reports of accidents.
   3. (c) Other information, such as statements of witnesses to the accident and supplementary reports from the investigating law enforcement agency.
   4. (d) Records of convictions or other information on file with the department.
   5. (e) Accident reconstruction reports.
   6. (f) Notices of payment of claims issued by insurance companies.

   7. (g) Coroner reports, except blood test results received by the department under s. 346.71 (2), Stats.

      Note: Blood test results obtained from police reports or other sources may be considered by the Department.

   8. (h) Investigator reports.

2. (2) An uninsured operator or owner may not be required to deposit security when there is no reasonable possibility of a judgment being rendered against the uninsured operator. The department may consider the following in making that determination:

   1. (a) Whether the person committed a violation of any rule of the road set out in ch. 346, 347, 348 or 350, Stats.
   2. (b) Whether the person failed to exercise ordinary care, based on information from the sources listed in sub. (1).
   3. (c) Notices of payment of claims from insurance companies.
   4. (d) Investigator reports.
   5. (e) Any other relevant evidence provided by witnesses or the parties.

   6. (f) Coroner reports.

      Note: See s. 344.14 (2) (k), Stats.

3. (3) If the department requires a person to deposit security under s. 344.13, Stats., and, after receiving additional information, determines that no reasonable possibility of a judgment finding the person liable exists, the department may rescind the security requirement. The department may accept any evidence of probative value including the types of evidence identified in sub. (1). The department may not rescind the security requirement solely because the owner, operator or other person who posted the bond files a bankruptcy petition. In the event of a bankruptcy proceeding involving an owner, operator, or person who filed a bond, the department shall retain the bond pending determination of liability for the accident and damages caused, and the application of the bond proceeds toward the judgment amount, regardless of whether the bankrupt debtor remains personally liable for that debt.

   Note: Where the Department has received a safety responsibility bond, it holds that bond in trust for the victims of the accident. No bond shall be released upon the filing of a bankruptcy, but shall be held in trust for the benefit of the injured parties. The injured parties may commence a suit to determine liability of the bankrupt debtor and to recover from the trust res.

History

History: Cr. Register, October, 1985, No. 358, eff. 11-1-85; am. (1) (intro.), (2) (intro.), r. (3), renum. (4) to be (3), Register, April, 1994, No. 460, eff. 5-1-94; CR 01-156: am. (1) (intro.), (a) and (b), (2) (intro.), (a) and (b) and (3), cr. (1) (d) to (h) and (2) (c) to (f) Register October 2005 No. 598, eff. 11-1-05.