Mandatory Insurance and the Bond in Lieu of SR-22

RCW 46.29.450 provides alternative methods of giving proof of financial responsibility. Other than the customary certificate of insurance under RCW 46.29.460, some drivers have applied for a security in lieu of SR-22 form insurance in order to avoid loss of employment where their employer has determined that carrying SR-22 form insurance will cause termination. Be careful as this will not necessarily guarantee your continued employment.

The Washington State Department of Licensing (DOL) offers two options for proof of financial responsibility on their website, Financial responsibility (SR-22):

1. a $60,000 certificate of deposit (CD), or
2. a $60,000 liability bond.

However, insurance companies are not willing to offer such a bond, because the DOL has not drafted any bond form. The insurance companies are unwilling to assume the added liability of drafting their own form. So, really there is only one option in lieu of SR-22 form insurance, posting the cash or securities such as a certificate of deposit under RCW 46.29.550.

If you wish to make application for the Bond in Lieu, fill out and transmit the Financial Responsibility Application and Affidavit available online at WA DOL forms. Once the DOL checks to see that you have no outstanding judgments, you fill out and send them the Assignment of Monies or Securities for Financial Responsibility. You will need to have your financial institution assist you, when you purchase your CD. Once DOL has a copy of the Assignment, they will mail you a Certificate of Proof of Financial Responsibility.