2014 -- S 2055

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LC003431

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

     RELATING TO MOTOR AND OTHER VEHICLES - REPARATIONS ACT

     

     Introduced By: Senators Bates, Hodgson, Algiere, Felag, and Picard

     Date Introduced: January 21, 2014

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 31-47-2 of the General Laws in Chapter 31-47 entitled "Motor

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

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     31-47-2. Definitions. -- As used in this chapter the term:

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      (1) "Accident" or "motor vehicle accident" means any accident involving a motor vehicle

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which results in bodily injury to or death of any person, or damage to the property of any person

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in excess of five hundred dollars ($500).

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      (2) "Administrator " means the administrator of the division of motor vehicles in the

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department of revenue.

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      (3) "Commissioner" means the insurance commissioner of this state.

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      (4) "Dealer engaged in the business of leasing motor vehicles" means any person

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engaged in the business of regularly making available, offering to make available, or arranging

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for another person to use a motor vehicle pursuant to a bailment, lease, or other contractual

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arrangement.

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      (5) "Driver" means every person who drives or is in actual physical control of a motor

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vehicle.

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      (6) "Financial security bond" means for each motor vehicle a bond executed by the

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owner and by a surety company duly authorized to transact business in this state.

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      (7) "Financial security deposit" means for each motor vehicle the deposit with the

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assistant director of seventy-five thousand dollars ($75,000) in cash, or securities, such as may

 

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legally be purchased by savings banks or trust funds, of a market value of seventy-five thousand

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dollars ($75,000).

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      (8) "License" includes any license, permit, or privilege to operate a motor vehicle issued

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under the laws of this state including:

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      (i) Any temporary instruction permit or examiner's driving permit;

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      (ii) The privilege of any person to drive a motor vehicle whether or not the person holds

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a valid license; or

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      (iii) Any nonresident's operating privilege.

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      (9) "Motor vehicle" means every vehicle required to display registration plates for

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operation upon public highways of this state.

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      (10) "Nonresident" means every person who is not a resident of this state.

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      (11) "Nonresident's operating privilege" means the privilege conferred upon a

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nonresident by the laws of this state pertaining to the operation by that person of a motor vehicle,

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or the use of a motor vehicle owned by that person, in this state.

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      (12) "Owner" means a person who holds the legal title of a motor vehicle. If a motor

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vehicle is the subject of an agreement for conditional sale or lease with the right of purchase upon

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performance of the conditions stated in the agreement and with an immediate right of possession

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vested in the conditional vendee or lessee, the vendee or lessee is the owner. If a mortgagor of a

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motor vehicle is entitled to possession, the mortgagor is the owner.

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      (13) (i) "Owner's policy of liability insurance" means a policy:

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      (A) Affording coverage as defined in the minimum provisions prescribed in a regulation

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which shall be promulgated by the commissioner. The commissioner, before promulgating the

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regulations or any amendments to them, shall consult with all insurers licensed to write

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automobile liability insurance in this state and shall not prescribe minimum provisions which fail

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to reflect the provisions of automobile liability insurance policies issued within this state at the

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date of the regulation or amendment of it. Nothing contained in regulation or in this chapter shall

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prohibit any insurer from affording coverage under an owner's policy of liability insurance more

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liberal than that required by the minimum provisions. Every owner's policy of liability insurance

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shall provide insurance subject to the regulation against loss from the liability imposed by law for

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damages, including damages for care and loss of services, because of bodily injury to or death of

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any person and injury to or destruction of property arising out of the ownership, maintenance,

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use, or operation of a specific motor vehicle or motor vehicles within the state of Rhode Island or

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elsewhere in the United States in North America or the Dominion of Canada, subject to a limit,

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exclusive of interest and costs, with respect to each motor vehicle of twenty-five thousand dollars

 

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($25,000) because of bodily injury to or death of one person in any one accident, and subject to

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the limit for one person, to a limit of fifty thousand dollars ($50,000) because of bodily injury to

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or death of two (2) or more persons in any one accident, and a limit of twenty-five thousand

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dollars ($25,000) because of injury to or destruction of property of others in any one accident, or

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seventy-five thousand dollars ($75,000) combined single limit. Any insurer authorized to issue an

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owner's policy of liability insurance as provided for in this chapter may, pending the issue of the

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policy, make an agreement to be known as a binder, or may, in lieu of the policy, issue a renewal

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endorsement or evidence of renewal of an existing policy, each of which shall be construed to

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provide indemnity or protection in like manner and to the same extent as the policy. The

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provisions of this chapter shall apply to such binders, renewal endorsements, or evidences of

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renewal; and

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      (B) In the case of a vehicle registered in this state, a policy issued by an insurer duly

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authorized to transact business in this state; or

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      (C) In the case of a vehicle registered in another state in the name of a nonresident, either

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a policy issued by an authorized insurer, or a policy issued by an unauthorized insurer authorized

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to transact business in the state of the nonresident's residence if the unauthorized insurer files with

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the commissioner in a form to be approved by him or her a statement consenting to service of

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process and declaring its policies shall be deemed to be varied to comply with the requirements of

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this chapter; and

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      (D) The form of which has been approved by the commissioner.

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      (ii) No such policy shall be issued or delivered in this state until a copy of the form of the

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policy shall have been on file with the commissioner for at least thirty (30) days, unless sooner

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approved in writing by the commissioner, nor if within that period of thirty (30) days the

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commissioner shall have notified the carrier in writing that in the commissioner's opinion

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specifying the reasons for it, the form of the policy does not comply with the laws of the state.

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      (14) "Person" includes every natural person, firm, partnership, association, or

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corporation.

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      (15) "Proof of financial security" means proof of ability to respond in damages for

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liability arising out of the ownership, maintenance, or use of a motor vehicle as evidenced by an

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owner's policy of liability insurance, a financial security bond, a financial security deposit, or

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qualification as a self insurer under this title, or in the case of a nonresident, under self insurance

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provisions of the laws of the jurisdiction of that nonresident. Such proof may be produced in

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either paper or electronic format. Acceptable electronic formats include display of electronic

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images on a cellular phone or any other type of portable electronic device.

 

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      (16) "Registration" means registration certificates and registration plates issued under the

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laws of this state pertaining to the registration of motor vehicles.

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      (17) "Self insurer" means a person who shall have been determined by the assistant

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director in accordance with this title, to be financially responsible.

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      (18) "State" when used in this chapter, unless the context clearly indicates otherwise,

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means any state, territory, or possession of the United States, the District of Columbia, or any

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province of the Dominion of Canada.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO MOTOR AND OTHER VEHICLES - REPARATIONS ACT

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     This act would permit the use of electronic forms of proof of auto liability insurance.

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     This act would take effect upon passage.

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