2014 -- H 7079

========

LC003213

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

____________

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR VEHICLE REPARATIONS

ACT

     Introduced By: Representatives Ucci, Winfield, Fellela, and Martin

     Date Introduced: January 15, 2014

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 31-47-3.1 of the General Laws in Chapter 31-47 entitled "Motor

Vehicle Reparations Act" is hereby amended to read as follows:

     31-47-3.1. Registration application. -- (a) No motor vehicle shall be registered and no

registration renewed in this state unless the application for the registration of a motor vehicle

shall contain a statement to be signed by the applicant who does all of the following:

      (1) States that the applicant will not operate, or allow to be operated, the registered motor

vehicle or any other motor vehicle unless all those motor vehicles shall be continuously covered

by financial security;

      (2) Contains a brief summary of the purposes and operation of this chapter, the rights

and duties of the applicant and the penalties for violation of this chapter;

      (3) Warns the applicant that this chapter does not prevent the possibility that the

applicant may be involved in an accident with an owner or operator of a motor vehicle who is

without financial responsibility.

      (b) (1) In the case of a person who purchases any motor vehicle from a licensed motor

vehicle dealer, who agrees to make application for registration of the motor vehicle on behalf of

the purchaser, the person shall sign a statement that complies with subsection (a) of this section.

      (2) In the case of a person who leases any motor vehicle from a dealer engaged in the

business of leasing motor vehicles who agrees to make application for registration of the motor

vehicle on behalf of the lessee, the person shall sign a statement that complies with subsection (a)

of this section, and the dealer shall do either of the following:

      (i) Submit the statement signed by the person to the division of motor vehicles; or

      (ii) Sign and submit a statement that certifies that the statement has been signed and filed

with the dealer or incorporated into the lease.

      (iii)(c) The administrator of the division of motor vehicles shall prescribe the form for all

statements required under this section and the manner in which these statements shall be

presented to the applicant. Statements shall be designed to enable the applicant to retain a copy.

      (iv)(d) An application for an operator's, chauffeur's, restricted or probationary license, or

renewal of those licenses shall contain a statement to be signed by the applicant that does all of

the following:

      (A)(1) States that the applicant will not operate a motor vehicle in this state, unless he or

she continuously maintains, or has maintained on his or her behalf, financial security;

      (B)(2) Contains a brief summary of the purposes and operation of this chapter, the rights

and duties of the applicant and the penalties for violation of this chapter;

      (C)(3) Warns the applicant that the financial responsibility law does not prevent the

possibility that the applicant may be involved in an accident with an owner or operator of a motor

vehicle who is without financial security.

     SECTION 2. Section 31-47-8.1 of the General Laws in Chapter 31-47 entitled "Motor

Vehicle Reparations Act" is hereby amended to read as follows:

     31-47-8.1. Verification of proof of financial security. -- (a) The administrator of the

division of motor vehicles shall select random samples of registrations of motor vehicles subject

to this chapter, or owners of them, for the purpose of verifying whether or not the motor vehicles

have proof of financial security as defined in this chapter. The administrator of the division of

motor vehicles shall verify proof of financial security by sending requests for verification to the

owner and/or insurer of the randomly selected motor vehicles.

      (b) In addition to general random samples of motor vehicle registrations, the

administrator of the division of motor vehicles shall select for verification other random samples,

including, but not limited to, registrations of motor vehicles owned by persons:

      (1) Whose motor vehicle registrations during the preceding four (4) years have been

suspended pursuant to the provisions of this chapter;

      (2) Who during the preceding four (4) years have been convicted of violating the

provisions of this chapter while operating vehicles owned by other persons;

      (3) Whose driving privileges have been suspended during the preceding four (4) years;

LC003213 - Page 2 of 5

or

      (4) Who during the preceding four (4) years acquired ownership of motor vehicles while

the registrations of those vehicles under the previous owners were suspended pursuant to the

provisions of this chapter.

      (c) Upon receiving certification from the department of revenue under section 31-26-6 of

the name of an owner or operator of any motor vehicle involved in an accident, the administrator

of the division of motor vehicles shall verify whether or not at the time of the accident the motor

vehicle was covered by proof of financial security as defined in this chapter.

      (d) The administrator of the division of motor vehicles shall send to owners of randomly

selected motor vehicles, or to randomly selected motor vehicle owners, requests for information

about their motor vehicles and proof of financial security. The request shall require the owner to

state whether or not the motor vehicle had proof of financial security on the verification date

stated in the administrator's request and the request may require, but is not limited to, a statement

by the owner of the names and addresses of insurers, policy numbers, and expiration dates of

insurance coverage or similar information as to other types of proof of financial security.

      (1) Within twenty (20) days after the administrator of the division of motor vehicles

mails a request, the owner to whom it is sent shall furnish the requested information to the

administrator of the division of motor vehicles above the owner's signed affirmation that the

information is true and correct. Proof of financial security in effect on the verification date, as

prescribed by the administrator of the division of motor vehicles, may be considered by the

administrator of the division of motor vehicles to be a satisfactory response to the request for

information.

      (2) If the owner responds to the request for information by asserting that the motor

vehicle was covered by proof of financial security on the verification date stated in the

administrator's request, the administrator of the division of motor vehicles may conduct a

verification of the response by furnishing necessary information to any insurer named in the

response. The insurer shall within twenty (20) days inform the assistant director if an individual

did not have in force motor vehicle insurance in accordance with the provisions of this chapter.

      If the administrator of the division of motor vehicles determines that an owner has

registered or maintained the registration of a motor vehicle without proof of financial security as

required by this chapter, the administrator of the division of motor vehicles shall notify the owner

and the owner shall be deemed to have registered or maintained registration of a motor vehicle in

violation of this chapter unless the owner within twenty (20) days furnishes proof of financial

security in effect on the verification date as prescribed by the administrator of the division of

LC003213 - Page 3 of 5

motor vehicles.

      (e) The administrator of the division of motor vehicles may send to insurers of randomly

selected motor vehicles requests for verification as to whether or not the verification date given

for that vehicle is true and accurate in accordance with the provisions of this chapter.

      (1) The insurer shall within twenty (20) days inform the administrator of the division of

motor vehicles if an individual did not have in force motor vehicle insurance in accordance with

the provisions of this chapter.

      (2) If the insurer informs the administrator of the division of motor vehicles that the

motor vehicle was not insured by the insurer on the verification date stated in accordance with the

provisions of this chapter, the administrator of the division of motor vehicles shall require the

owner to show proof of financial security within twenty (20) days of the administrator's request.

Any owner who fails to respond to that request shall be deemed to have registered or maintained

registration of a motor vehicle in violation of this chapter.

      (f) The administrator of the division of motor vehicles shall promulgate regulations for

the procedures for verification of proof of financial security. The administrator of the division of

motor vehicles shall also promulgate rules and regulations for the method in which the random

selection shall be conducted.

      (g) No random sample selected under this section shall be categorized on the basis of

race, color, religion, sex, national origin, ancestry, age, marital status, disability, economic status

or geography.

      (h) No verification procedure established under this section shall include individual

inspections of motor vehicles on a highway solely for the purpose of verifying the existence of

evidence of proof of financial security. The verification procedure shall be based solely upon a

review of documentary information.

     (i) An insurer who cancels coverage shall notify the administrator of the division of

motor vehicles of such cancellation forthwith in writing or electronically.

     SECTION 3. This act shall take effect upon passage.

========

LC003213

========

LC003213 - Page 4 of 5

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR VEHICLE REPARATIONS

ACT

***

     This act would require applicants for vehicle registration to certify that financial security

will be maintained continuously, and would direct insurers to notify the department of motor

vehicles when coverage is cancelled.

     This act would take effect upon passage.

========

LC003213

========

LC003213 - Page 5 of 5