Chapter 399
2021 -- H 6054
Enacted 07/14/2021

A N   A C T
RELATING TO MOTOR AND OTHER VEHICLES -- SAFETY RESPONSIBILITY ADMINISTRATION -- SECURITY

Introduced By: Representatives Knight, McEntee, Caldwell, Batista, and Speakman

Date Introduced: March 02, 2021

It is enacted by the General Assembly as follows:
     SECTION 1. Sections 31-31-4, 31-31-5, 31-31-6, 31-31-7, 31-31-8, 31-31-9, 31-31-10,
31-31-11, 31-31-12, 31-31-13, 31-31-14, 31-31-15, 31-31-16, 31-31-17, 31-31-18, 31-31-19, 31-
31-20 and 31-31-21 of the General Laws in Chapter 31-31 entitled "Safety Responsibility
Administration - Security Following Accident" are hereby repealed.
     31-31-4. Application of chapter.
     The provisions of this chapter requiring a deposit of security and suspensions for failure to
deposit security, subject to certain exemptions, shall apply to the driver and owner of any vehicle
of a type subject to registration under the motor vehicle laws of this state, which is in any manner
involved in an accident within this state, which accident has resulted in bodily injury to or death of
any person or damage to the property of any one person in excess of five hundred dollars ($500).
     31-31-5. Determination of security required -- Notices.
     (a) The division of motor vehicles, not less than twenty (20) days after receipt of a report
of an accident as described in § 31-31-4, shall determine the amount of security which shall be
sufficient in its judgments to satisfy any judgment or judgments for damages resulting from the
accident as may be recovered against each driver or owner. The determination shall not be made
with respect to drivers or owners who are exempt under succeeding sections of this chapter from
the requirements as to security and suspension.
     (b) The division of motor vehicles shall determine the amount of security deposit required
of any person upon the basis of the reports or other information submitted. In the event a person
involved in an accident as described in this chapter fails to make a report or submit information
indicating the extent of his or her injuries or the damage to his or her property within ninety (90)
days after the accident, and the division of motor vehicles does not have sufficient information on
which to base an evaluation of the injuries or damage, then the division of motor vehicles, after
reasonable notice to the person, if it is possible to give notice, otherwise without notice, shall not
require any deposit of security for the benefit or protection of the person.
     (c) The division of motor vehicles within ninety (90) days after receipt of report of any
accident referred to herein, and upon determining the amount of security to be required of any
person involved in the accident or to be required of the owner of any vehicle involved in the
accident, shall give written notice to the person of the amount of security required to be deposited
by him or her, and that an order of suspension will be made as provided in this chapter upon the
expiration of ten (10) days after the sending of the notice unless within the time security is deposited
as required by the notice.
     31-31-6. Exceptions to requirement of security.
     The requirements as to security and suspension in this chapter shall not apply:
     (1) To the driver or owner if the owner had in effect at the time of the accident an
automobile liability policy or bond with respect to the vehicle involved in the accident, except that
a driver shall not be exempt under this subdivision if at the time of the accident the vehicle was
being operated without the owner's permission, express or implied;
     (2) To the driver, if not the owner of the vehicle involved in the accident, if there was in
effect at the time of the accident an automobile liability policy or bond with respect to his or her
driving of vehicles not owned by him or her;
     (3) To a driver or owner whose liability for damages resulting from the accident is, in the
judgment of the division of motor vehicles, covered by any other form of liability insurance policy
or bond;
     (4) To any person qualifying as a self-insurer under § 31-33-9 or to any person operating a
vehicle for the self-insurer;
     (5) To the driver or the owner of a vehicle involved in an accident if no injury or damage
was caused to the person or property of anyone other than the driver or owner;
     (6) To the driver or owner of a vehicle if at the time of the accident the vehicle was stopped,
standing, or parked, whether attended or unattended except in the event that the division of motor
vehicles shall determine that any such stopping, standing, or parking of the vehicle was illegal, and
that the violation contributed to the cause of the accident;
     (7) To the owner of a vehicle if at the time of the accident the vehicle was being operated
without the owner's permission, express or implied, or was parked by a person who had been
operating the vehicle without permission;
     (8) To the owner of a vehicle involved in an accident if at the time of the accident the
vehicle was owned by or leased to the United States, to this state or to a municipality of it, or to the
driver of the vehicle if operating the vehicle with permission; or
     (9) To the driver or the owner of a vehicle in the event, at the time of the accident the
vehicle was being operated by or under the direction of a police officer who, in the performance of
his or her duties, shall have assumed custody of the vehicle.
     31-31-7. Requirements as to policy or bond.
     (a) No policy or bond shall be effective under § 31-31-6 unless issued by an insurance
company or surety company authorized to do business in this state, except as provided in subsection
(b) of this section, nor unless the policy or bond is subject, if the accident has resulted in bodily
injury or death, to a limit, exclusive of interest and costs, of not less than twenty-five thousand
dollars ($25,000) because of bodily injury to or death of one person, in any one accident and subject
to the limit for one person, to a limit of not less than fifty thousand dollars ($50,000) because of
bodily injury to or death of two (2) or more persons in any one accident, and if the accident has
resulted in injury to, or destruction of, property to a limit of not less than twenty-five thousand
dollars ($25,000) because of injury to or destruction of property of others in any one accident.
     (b) No policy or bond shall be effective under § 31-31-6 with respect to any vehicle which
was not registered in this state or was a vehicle which was registered elsewhere than in this state at
the effective date of the policy or bond or the most recent renewal thereof, unless the insurance
company or surety company issuing the policy or bond is authorized to do business in this state, or
if the company is not authorized to do business in this state, unless it shall execute a power of
attorney authorizing the administrator of the division of motor vehicles to accept service on its
behalf of notice or process in any action upon the policy or bond arising out of the accident.
     (c) The division of motor vehicles may rely upon the accuracy of the information in a
required report of an accident as to the existence of insurance or a bond unless and until the division
of motor vehicles has reason to believe that the information is erroneous.
     31-31-8. Form and amount of security.
     (a) The security required under this chapter may consist of an insurance company policy
or bond, cash, a savings bank deposit, marketable securities, or a recorded bond with individual
surety having sufficient equity in real estate within this state scheduled in the bond, and shall be in
a form and in an amount that the division of motor vehicles may require, but in no case in excess
of the limits specified in § 31-31-7 in reference to the acceptable limits of a policy or bond.
     (b) Every depositor of security shall designate in writing every person in whose behalf the
deposit is made, and may at any time change the designation, but any single deposit of security
shall be applicable only on behalf of persons required to furnish security because of the accident.
     31-31-9. Failure to deposit security -- Suspensions.
     (a) In the event that any person required to deposit security under this chapter fails to
deposit the security within ten (10) days after the division of motor vehicles has sent the notice as
provided in this chapter, the division of motor vehicles shall suspend:
     (1) The license of each driver in any manner involved in the accident;
     (2) The registrations of all vehicles owned by the owner of each vehicle of a type subject
to registration under the laws of this state involved in the accident;
     (3) If the driver is a nonresident, the privilege of operating within this state a vehicle of a
type subject to registration under the laws of this state;
     (4) If the owner is a nonresident, the privilege of the owner to operate or permit the
operation within this state of a vehicle of a type subject to registration under the laws of this state.
     (b) The suspensions shall be made in respect to persons required by the division of motor
vehicles to deposit the security who fail to deposit the security, except as otherwise provided under
succeeding sections of this chapter.
     31-31-10. Relief from security requirements.
     (a) A person shall be relieved from the requirement for deposit of security for the benefit
or protection of another person injured or damaged in the accident in the event he or she is released
from liability by the other person.
     (b) A covenant not to sue shall relieve the parties to it as to each other from the security
requirements of this chapter.
     (c) In the event the division of motor vehicles has evaluated the injuries or damage to any
minor in an amount not more than two hundred dollars ($200) the division of motor vehicles may
accept, for the purpose of this chapter only, evidence of a release from liability executed by a natural
guardian or a legal guardian on behalf on the minor without the approval of any court or judge.
     (d) The division of motor vehicles may accept evidence of a payment to an operator or to
the owner of a vehicle involved in an accident by the insurance carrier of any other person involved
in the accident on account of damage to property or to bodily injury, as effective to relieve the
operator or owner from the security and suspension provisions of this chapter in respect to any
claim for property damage or bodily injury arising out of the accident by the person on whose
behalf the payment has been made. A payment to the insurance carrier of an operator or owner
under its right of subrogation shall be the equivalent of a payment to the operator or owner.
     31-31-11. Adjudication of nonliability.
     A person shall be relieved from the requirement for the deposit of security in respect to a
claim for injury or damage arising out of the accident in the event the person has been finally
adjudicated not to be liable in respect to the claim.
     31-31-12. Agreements for payment of damages.
     (a) Any two (2) or more of the persons involved in or affected by an accident as described
in § 31-31-4 may at any time enter into a written agreement for the payment of an agreed amount
with respect to all claims of the persons because of bodily injury to or death or property damage
arising from the accident. This agreement may provide for payment in installments, and may file a
signed copy of it with the division of motor vehicles.
     (b) The division of motor vehicles, to the extent provided by the written agreement filed
with it, shall not require the deposit of security and shall terminate any prior order of suspension.
If security has previously been deposited, the division of motor vehicles shall immediately return
the security to the depositor or the depositor's personal representative.
     (c) In the event of a default in any payment under the agreement and upon notice of the
default, the division of motor vehicles shall take action suspending the license or registration of the
person in default as would be appropriate in the event of failure of the person to deposit security
when required under this chapter.
     (d) The suspension shall remain in effect and the license or registration shall not be restored
unless and until:
     (1) Security is deposited as required under this chapter in the amount that the division of
motor vehicles may then determine, or
     (2) When, following the default and suspension, the person in default has paid the balance
of the agreed amount, or
     (3) Three (3) years have elapsed following the date of the accident and/or occurrence, and
evidence satisfactory to the division of motor vehicles has been filed with it that during the period
no action at law upon the agreement has been instituted and is pending.
     31-31-13. Release upon payment of judgment.
     The payment of a judgment arising out of an accident or the payment upon the judgment
of an amount equal to the maximum amount which could be required for deposit under this chapter
shall, for the purposes of this chapter, release the judgment debtor from the liability evidenced by
the judgment.
     31-31-14. Termination of security requirement.
     The division of motor vehicles, if satisfied as to the existence of any fact which under §§
31-31-10, 31-31-11, 31-31-12, or 31-31-13 would entitle a person to be relieved from the security
requirements of this chapter, shall not require the deposit of security by the person so relieved from
the requirement and shall terminate any prior order of suspension in respect to the person. If security
has previously been deposited by the person, the division of motor vehicles shall immediately return
the deposit to the person or to his or her personal representative.
     31-31-15. Duration of suspension.
     Unless a suspension is terminated under other provisions of this chapter, any order or
suspension by the division of motor vehicles under this chapter shall remain in effect and no license
shall be renewed for or issued to any person whose vehicle registration is suspended until:
     (1) The person shall deposit or there shall be deposited on his or her behalf the security
required under this chapter;
     (2) Three (3) years shall have elapsed following the date of the accident and/or occurrence,
and evidence satisfactory to the division of motor vehicles has been filed with it that during the
period no action for damages arising out of the accident resulting in the suspension has been
instituted; or
     (3) Eight (8) years have elapsed following the date from which an action at law has been
filed in any court in this state, provided there does not exist any unpaid judgment.
     31-31-16. Drivers not licensed in state -- Unregistered vehicles -- Out of state
accidents.
     (a) In case the driver or the owner of a vehicle of a type subject to registration under the
laws of this state involved in an accident within this state has no license or registration in this state,
then the driver shall not be allowed a license, nor shall the owner be allowed to register any vehicle
in this state, until the owner has complied with the requirements of this chapter to the same extent
that would be necessary if, at the time of the accident, he or she had held a license or been the
owner of a vehicle registered in this state.
     (b) When a nonresident's operating privilege is suspended pursuant to § 31-31-9, the
division of motor vehicles shall transmit a certified copy of the record of the action to the official
in charge of the issuance of licenses and registration certificates in the state in which the nonresident
resides, if the law of the other state provides for action similar to that provided for in subsection (c)
of this section.
     (c) Upon receipt of certification that the operating privilege of a resident of this state has
been suspended or revoked in any other state pursuant to a law providing for its suspension or
revocation for failure to deposit security for the payment of judgments arising out of a motor vehicle
accident, under circumstances which would require the division of motor vehicles to suspend a
nonresident's operating privilege had the accident occurred in this state, the division of motor
vehicles shall suspend the license of the resident if he or she was the driver, and all of the resident's
registrations if he or she was the owner of a motor vehicle involved in the accident. The suspension
shall continue until the resident furnishes evidence of his or her compliance with the law of the
other state relating to the deposit of the security.
     31-31-17. Decrease in amount of security.
     The division of motor vehicles may reduce the amount of security ordered in any case
within six (6) months after the date of the accident if in its judgment the amount ordered is
excessive. In case the security originally ordered has been deposited, the excess deposit over the
reduced amount ordered shall be immediately returned to the depositor or the depositor's personal
representative.
     31-31-18. Correction of action taken on erroneous information.
     Whenever the division of motor vehicles has taken any action or has failed to take any
action under this chapter by reason of having received erroneous information or by reason of having
received no information, then upon receiving correct information within one year after the date of
an accident, the division of motor vehicles shall take appropriate action to carry out the purposes
and effect of this chapter. This provision shall not, however, be deemed to require the division of
motor vehicles to reevaluate the amount of any deposit required under this chapter.
     31-31-19. Custody of security.
     The division of motor vehicles shall place any cash deposited with it under this chapter in
the custody of the general treasurer. Other securities shall be kept in the custody of the administrator
of the division of motor vehicles or his or her designee in a manner satisfactory to the general
treasurer.
     31-31-20. Application of security.
     (a) The security shall be applicable and available only:
     (1) For the payment of any settlement agreement covering any claim arising out of the
accident upon instruction of the person who made the deposit, or
     (2) For the payment of a judgment or judgments, rendered against the person required to
make the deposit, for damages arising out of the accident in an action at law begun not later than
three (3) years after the date of an accident and/or occurrence.
     (b) Every distribution of funds from the security deposits shall be subject to the limits of
the division's evaluation on behalf of a claimant.
     31-31-21. Return of deposit.
     Upon the expiration of three (3) years from the date of an accident or occurrence, any
security remaining on deposit shall be returned to the person who made the deposit or to his or her
personal representative if an affidavit or other evidence satisfactory to the division of motor
vehicles has been filed with it:
     (1) That no action for damages arising out of the accident for which the deposit was made
is pending against any person on whose behalf the deposit was made; and
     (2) That there does not exist any unpaid judgment rendered against the person in the action:
or
     (3) That eight (8) years have elapsed following the date from which an action at law has
been filed in any court in this state and there does not exist any unpaid judgment.
     SECTION 2. Sections 31-47-8, 31-47-8.1 and 31-47-10 of the General Laws in Chapter
31-47 entitled "Motor Vehicle Reparations Act" are hereby repealed.
     31-47-8. Revocation of registrations -- Drivers' licenses and nonresident privileges.
     (a)(1) The administrator of the division of motor vehicles, upon receipt of evidence as
provided for in § 31-47-17, that financial security for any motor vehicle registered in this state is
no longer in effect, may within seven (7) days revoke the registration of the vehicle.
     (2) The motor vehicle shall not be registered or reregistered in the name of the person, or
in any other name where the administrator of the division of motor vehicles has reasonable grounds
to believe that the registration or re-registration will have the effect of defeating the purposes of
this chapter, and no other motor vehicle shall be registered in the name of the person for a period
of thirty (30) days from the date of the revocation.
     (b)(1) The administrator of the division of motor vehicles, upon receipt of evidence that
the owner of a motor vehicle registered in this state has operated or permitted a motor vehicle to be
operated upon the public highways of this or any other state while financial security was not in
effect with respect to the vehicle, may revoke the registration of the vehicle and the driver's license,
if any, of the owner.
     (2) The motor vehicle shall not be registered in the name of the person or in any other name
where the administrator of the division of motor vehicles has reasonable grounds to believe that the
registration will have the effect of defeating the purpose of this chapter, and no other motor vehicle
shall be registered in the name of the person, nor any driver's license issued to the person, for a
period of three (3) months from the date of the revocation.
     (c)(1) The administrator of the division of motor vehicles, upon receipt of evidence that a
person, other than the owner, has operated upon the public highways of this state a motor vehicle
registered in this state with knowledge that financial security was not in effect with respect to the
vehicle, may revoke the driver's license of the person, or if he or she is a nonresident, the
nonresident driving privileges of the person.
     (2) No new driver's license may be issued, or nonresident driving privilege restored to the
person for a period of one to three (3) months from the date of the revocation.
     (3) This subsection shall not apply to any person who at the time of operation of the motor
vehicle, had in effect an operator's policy of liability insurance with respect to his or her operation
of the vehicle.
     (d)(1) The administrator of the division of motor vehicles, upon receipt of evidence that
the owner of a motor vehicle not registered in this state has operated or permitted a motor vehicle
to be operated upon the public highways of this state while financial security was not in effect with
respect to the vehicle, may revoke the person's privilege to operate any motor vehicle in this state
and the privilege of the operation within this state of any motor vehicle owned by him or her.
     (2) The nonresident privilege may not be restored for a period of one to three (3) months
from the date of the revocation.
     (e)(1) The administrator of the division of motor vehicles, upon receipt of evidence that a
nonresident, other than the owner of the vehicle, has operated upon the public highways of this
state a motor vehicle not registered in this state, with knowledge that financial security was not in
effect with respect to the vehicle, may revoke the nonresident's privilege to operate any motor
vehicle in this state.
     (2) The nonresident privilege may not be restored for a period of one to three (3) months
from the date of the revocation.
     (3) This subsection shall not apply to any person who at the time of operation of the motor
vehicle had in effect an operator's policy of liability insurance with respect to his or her operation
of the motor vehicle.
     (f) Notice of revocation pursuant to this section may be given to the owner of a vehicle
registered in this state or to a driver licensed in this state, by mailing the notice to the owner or
licensee at the address contained in the certificate of registration for the vehicle owned by the person
or to the address contained in his or her driving license. The suspension shall be effective upon
receipt of notice and the one to three (3) month period of suspension shall commence upon receipt
of the license, registration, and registration plates by the division.
     (g) Failure of the owner or licensee to deliver a certificate of registration, number plates,
or driver's license to the administrator of the division of motor vehicles after revocation of it or as
otherwise provided in this chapter, may cause the suspension to be continued for an additional
period equal to the number of days between the suspension date and the actual date of compliance.
     (h) An operator's policy of liability insurance, as used in this section, shall mean a policy
issued by an insurance carrier duly authorized to transact business in this state which shall insure
the person named in it as insured, against loss from the liability imposed upon him or her by law
for damages, including damages for care and loss of services, because of bodily injury to or death
of any person and injury to or destruction of property arising out of the use by him or her, of any
motor vehicle not owned by him or her, subject to the same minimum provisions and approval
required by this chapter, with respect to an owner's policy of liability insurance. With respect to a
nonresident the policy may also be issued by a nonadmitted insurance carrier provided the
requirements of this chapter, with respect to issuance of an owner's policy of liability insurance by
the carrier, have been met.
     (i)(1) If a motor vehicle has been involved in an accident, and its registration or the driver's
license of its operator, or both, have been revoked pursuant to this section, then neither that vehicle
nor any other motor vehicle shall be registered or reregistered in the name of its owner or of any
other person legally responsible for its use, nor shall any driver's license be issued to the owner,
person, or operator until three (3) months have passed since the date of the revocation and, as the
case may be, the administrator of the division of motor vehicles has received the evidence required
by subdivision (3) of this subsection.
     (2) If a motor vehicle not registered in this state is involved in any accident in this state and
the privilege of its operation within the state has been revoked, then neither its owner, any person
legally responsible for its, use, nor its operator, shall exercise the privilege of the operation within
this state of any motor vehicle until three (3) months have passed since the date of the revocation
and, as the case may be, the administrator of the division of motor vehicles has received the
evidence as required in subdivision (3) of this subsection.
     (3) The evidence referred to in subsections (a) and (b) of this section shall be evidence
satisfactory to the administrator of the division of motor vehicles:
     (i) That no cause of action based upon the accident against the owner, person legally
responsible, or operator has been commenced within a period of one year from the date of the
accident or a release has been given to the owner, person, or operator; or
     (ii) That no judgment arising out of the cause of action for amounts within the limits stated
in § 31-47-2(13)(i)(A) against the owner, person, or operator remains unsatisfied.
     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; 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 § 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 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.
     31-47-10. Accident reports.
     (a) Every party required to file an accident report under § 31-26-6 shall also include with
the report a document described under § 31-47-12(c). If the administrator of the division of motor
vehicles determines, within forty-five (45) days after the report is filed, that an operator or owner
has violated § 31-47-9, the administrator of the division of motor vehicles shall, unless an order
based upon the violation has been entered against the operator or owner under § 31-47-9, do all of
the following:
     (1) Order the impoundment, with respect to the motor vehicle involved in the accident, of
the certificate of registration and registration plates of any owner who has violated § 31-47-9.
     (2) Order the suspension of the license of any operator or owner who has violated § 31-47-
9.
     (3) Record the name and address of the person whose certificate of registration and
registration plates have been impounded or are under an order of impoundment, or whose license
has been suspended or is under an order of suspension; the serial number of his or her license; the
serial numbers of his or her certificate of registration and registration plates. The information shall
be recorded in a manner that it becomes a part of the person's permanent record, and assists the
administrator of the division of motor vehicles in monitoring compliance with the orders of
suspension or impoundment.
     (4) Send written notification by certified mail to every person to whom the order pertains,
at the person's last known address as shown on the records of the division of motor vehicles. The
person shall, within ten (10) days after the date of the mailing of the notification, surrender to the
administrator of the division of motor vehicles any certificate of registration and registration plates
under the order of impoundment, or any license under the order of suspension.
     (b) The administrator shall issue any order under this section without a hearing. Any person
adversely affected by the order may, within ten (10) days after the issuance of the order, request an
administrative hearing before the administrator of the division of motor vehicles who shall provide
the person with an opportunity for a hearing in accordance with this paragraph. A request for a
hearing does not operate as a stay of the order. The hearing shall afford the person an opportunity
to respond to the allegation that he or she knowingly operated or permitted to be operated a motor
vehicle without the financial security required by law. The administrator shall determine the date,
time, and place of any hearing, provided that the hearing shall be held, and an order issued or
findings made, within thirty (30) days after the administrator of the division of motor vehicles
receives a request for a hearing. The person shall pay the cost of the hearing before the administrator
of the division of motor vehicles, if the administrator's order of suspension or impoundment is
upheld.
     SECTION 3. Section 27-7-2.1 of the General Laws in Chapter 27-7 entitled "Liability
Insurance" is hereby amended to read as follows:
     27-7-2.1. Uninsured motorist coverage.
     (a) No policy insuring against loss resulting from liability imposed by law for property
damage caused by collision, bodily injury, or death suffered by any person arising out of the
ownership, maintenance, or use of a motor vehicle shall be delivered or issued for delivery in this
state with respect to any motor vehicle registered or principally garaged in this state unless coverage
is provided in or supplemental to the policy, for bodily injury or death in limits set forth in each
policy, but in no instance less than the limits set forth in § 31-31-7 § 31-47-2(13)(i)(A) under
provisions approved by the insurance commissioner, for the protection of persons insured under
the policy who are legally entitled to recover damages from owners or operators of uninsured motor
vehicles and hit-and-run motor vehicles because of property damage, bodily injury, sickness, or
disease, including death, resulting from that injury, sickness, or disease. The insurer shall provide
uninsured motorist coverage in an amount equal to the insured's bodily injury liability limits. The
named insured shall have the option of selecting a limit in writing less than the bodily injury liability
coverage, but in no event less than the limits set forth in § 31-31-7 § 31-47-2(13)(i)(A), unless the
named insured is purchasing only the minimum coverage required by compulsory insurance
provisions of the general laws, in which case the limit can be reduced to zero, but only after signing
an advisory notice approved by the director of business regulation concerning the hazard of
uninsured and underinsured motorists. That coverage shall also apply in the case of a responsible
party whose liability insurance carrier was insolvent at the time of the accident or became insolvent
subsequent to the accident.
     (b) Notwithstanding the provisions of subsection (a), the named insured shall have the
option to reject, in writing, uninsured motorist coverage for loss resulting from damage to property.
If the named insured has collision coverage for property damage to his or her vehicle, then no
coverage for uninsured motorist property damage shall be required unless the insured at his or her
option chooses to purchase that coverage.
     (c) For the purposes of this section:
     (1) "Policy insuring against loss" means a policy which that provides primary coverage
for the insured motor vehicle; and
     (2) "Property damage" means injury to or destruction of the insured vehicle, including its
loss of use and any property, excluding business property, owned by the insured while contained
in the insured vehicle.
     (d) After the selection of limits by the named insured or the exercise of the right to reject
that portion of the coverage which that applies to property damage, the insurer or any affiliated
insurer shall be required to notify the policyholder, in any renewal, reinstatement, substitute,
amended, altered, modified, transfer, or replacement policy, as to the availability of that coverage
or optional limits. The insured may, subject to the limitations expressed in this chapter, make a
written request for higher limits, newly added coverage, or coverage more extensive than that
provided on a prior policy.
     (e) Property damage caused by collision shall be subject to a two hundred dollar ($200)
deductible per claim unless otherwise agreed. Any claim submitted under the property damage
portion of this section must include the name, address, and other means of identification to establish
that the at-fault operator is without insurance. The rate for this coverage will be established as a
percentage of the existing base collision insurance rate as utilized by the majority of companies, to
be determined by the insurance commissioner.
     (f) Whenever, through subrogation, an insurance company or its insurance producer
collects a casualty loss from a third party, that company or insurance producer shall, from the funds
collected, first pay to the insured the deductible portion of the casualty loss less the prorated share
of subrogation expense and only after this retain any funds in excess of the deductible portion of
the recovery.
     (g) For the purposes of this section "uninsured motorist" shall include an underinsured
motorist. An "underinsured motorist" is the owner or operator of a motor vehicle who carries
automobile liability insurance with coverage in an amount less than the limits or damages that
persons insured pursuant to this section are legally entitled to recover because of bodily injury,
sickness, or disease, including death, resulting from that injury, sickness, or disease.
     (h) A person entitled to recover damages pursuant to this section shall not be required to
make a claim against or bring an action against the uninsured or underinsured tortfeasor as a
prerequisite to recover damages from the insurer providing coverage pursuant to this section. In the
event that the person entitled to recover against an underinsured motorist recovers from the insurer
providing coverage pursuant to this section, that insurer shall be entitled to subrogation rights
against the underinsured motorist and his or her insurance carrier. Release of the tortfeasor with the
consent of the company providing the underinsured coverage shall not extinguish or bar the claim
of the insured against the underinsurance carrier regardless of whether the claim has been
liquidated.
     (i) Whenever an insured has paid two (2) or more separate premiums for uninsured
motorists' coverage in a single policy of insurance or under several policies with the same insurance
company, the insured shall be permitted to collect up to the aggregate amount of coverage for all
of the vehicles insured, regardless of any language in the policy to the contrary.
     SECTION 4. Section 31-31-22 of the General Laws in Chapter 31-31 entitled "Safety
Responsibility Administration - Security Following Accident" is hereby amended to read as
follows:
     31-31-22. Matters not to be evidenced in civil suits.
     The report required following an accident, and the action taken by the division of motor
vehicles upon which the action is based, and the security filed as provided in this chapter, shall not
be referred to in any way, and shall not be any evidence of the negligence or due care of either
party, at the trial of any action at law to recover damages; provided, that the reports, and the division
action findings, and the security filed shall be admissible in any civil action based upon the
uninsured motorist provision of an automobile insurance policy as evidence in proof of the
existence of an uninsured motorist.
     SECTION 5. Section 31-32-14 of the General Laws in Chapter 31-32 entitled "Proof of
Financial Responsibility for the Future" is hereby amended to read as follows:
     31-32-14. Duration of suspension for unsatisfied judgment.
     (a) The license, registration, and nonresident's operating privilege shall remain so
suspended and shall not be renewed, nor shall the license or registration be thereafter issued in the
name of the person, including any person not previously licensed, unless and until the judgment is
stayed, satisfied in full, or to the extent provided in this chapter, and until the person gives proof of
financial responsibility subject to the exemptions stated in §§ 31-32-12, 31-32-13, and 31-32-17.
     (b) Provided, that if but for the provisions of this chapter relating to the failure to pay
judgments upon causes of action arising out of the ownership, maintenance, or use of vehicles of a
type subject to registration under the laws of this state, the license, or registration would have been
restored under the provisions of § 31-31-15(3), then the suspension of the license or registration
under the provisions of this chapter shall terminate.
     SECTION 6. Section 31-34-4 of the General Laws in Chapter 31-34 entitled
"Responsibility of Owners of Rental Vehicles" is hereby amended to read as follows:
     31-34-4. Liability of owner for negligence of operator.
     (a) Any owner of a for-hire motor vehicle or truck who has given proof of financial
responsibility under this chapter or who in violation of this chapter has failed to give proof of
financial responsibility, shall be jointly and severally liable with any person operating the vehicle
for any damages caused by the negligence of any person operating the vehicle by or with the
permission of the owner. Nothing in this section shall be construed to prevent an owner who has
furnished proof of financial responsibility or any person operating the vehicle from making defense
in an action upon the ground of contributory negligence to the extent to which the defense is
allowed in other cases.
     (b) Notwithstanding the provisions of subsection (a) of this section, or any provisions
contained under this title 31 to the contrary, the valid and collectable collectible liability insurance
or self-insurance providing coverage or liability protection for third-party liability claims arising
out of the operation of the rental vehicle shall be primary for the lessor or any person operating the
motor vehicle, with the express permission of the lessor unless otherwise stated in at least ten-(10)
point (10) type on the face of the rental agreement. That insurance or self-insurance is primary only
up to the limits required under § 31-31-7 § 31-47-2(13)(i)(A).
     (c) "Lessor" includes any entity in the business of renting motor vehicles pursuant to a
written rental agreement.
     SECTION 7. Section 31-47-9 and 31-47-15.1 of the General Laws in Chapter 31-47
entitled "Motor Vehicle Reparations Act" are hereby amended to read as follows:
     31-47-9. Penalties.
     (a) Any owner of a motor vehicle registered in this state who shall knowingly operate the
motor vehicle or knowingly permit it to be operated in this state without having in full force and
effect the financial security required by the provisions of this chapter, and any other person who
shall operate in this state any motor vehicle registered in this state with the knowledge that the
owner of it does not have in full force and effect financial security, except a person who, at the time
of operation of the motor vehicle, had in effect an operator's policy of liability insurance, as defined
in this chapter, with respect to his or her operation of the vehicle, may be subject to a mandatory
suspension of license and registration as follows:
     (1) For a first offense, a suspension of up to three (3) months and may be fined one hundred
dollars ($100) up to five hundred dollars ($500);
     (2) For a second offense, a suspension of six (6) months; and may be fined five hundred
dollars ($500); and
     (3) For a third and subsequent offense, a suspension of up to one year. Additionally, any
person violating this section a third or subsequent time shall be punished as a civil violation and
may be fined one thousand dollars ($1,000).
     (b) An order of suspension and impoundment of a license or registration, or both, shall
state that date on or before which the person is required to surrender the person's license or
certificate of registration and registration plates. The person is deemed to have surrendered the
license or certificate of registration and registration plates, in compliance with the order, if the
person does either of the following:
     (1) On or before the date specified in the order, personally delivers the license or certificate
of registration and registration plates, or causes the delivery of those items, to the administrator of
the division of motor vehicles or court, whichever issued the order; or
     (2) Mails the license or certificate of registration and registration plates to the administrator
of the division of motor vehicles, in an envelope or container bearing a postmark showing a date
no later than the date specified in the order.
     (c) The administrator of the division of motor vehicles shall not restore any operating
privileges or registration rights suspended under this section or return any license, certificate of
registration, or registration plates impounded under this section unless the rights are not subject to
suspension or revocation under any other law and unless the person, in addition to complying with
all other conditions required by law for reinstatement of operating privileges or registration rights,
complies with all of the following:
     (1) Pays a reinstatement fee of thirty dollars ($30.00). The reinstatement fee may be
increased, upon approval of the administrator of the division of motor vehicles, up to an amount
not exceeding fifty dollars ($50.00).; and
     (2) Files and maintains proof of financial security. To facilitate the administration of this
chapter the clerk of the courts shall notify the administrator of the division of motor vehicles of all
persons against whom judgments have been entered arising out of a motor vehicle collision.
     (d) For the purpose of this section, an "operator's policy of liability insurance" means a
policy issued by an insurance carrier duly authorized to transact business in this state which that
shall insure the person named in it as insured, against loss from the liability imposed upon him or
her by law for damages, including damages for care and loss of services, because of bodily injury
to or death of any person and injury to or destruction of property arising out of the use by him or
her, of any motor vehicle not owned by him or her, subject to the same minimum provisions and
approval required by this chapter, with respect to an owner's policy of liability insurance. With
respect to a nonresident, the policy may also be issued by a nonadmitted insurance carrier provided
the requirements of this chapter, with respect to issuance of an owner's policy of liability insurance
by the carrier, have been met.
     31-47-15.1. Exception for seasonal vehicles.
     (a) Upon receipt of a signed written request for a suspension from the owner of a registered
motor vehicle stating that the vehicle will not be operated upon any highway during a period of not
less than thirty (30) consecutive days, the insurer of the vehicle shall suspend, to the extent
requested by the owner, insurance afforded under the policy providing the security required by this
chapter, for the vehicle until notified by the owner that the coverage should be reinstated. During
the period of suspension only, the provisions of this chapter shall not apply with respect to the
vehicle. If the vehicle is operated upon any highway by or with the permission of the owner during
the period of suspension, the provisions of this chapter shall immediately become applicable.
     (b) As used in this section, the term "highway" includes all roads as defined in § 31-1-23,
except a private road or driveway.
     (c) This section shall not apply to a motor vehicle for which proof of financial responsibility
is required under the provisions of § 31-31-5 or chapter 32 of this title 31. This section shall not
apply to motorized vehicles used seasonally in the town of New Shoreham commonly referred to
as mopeds.
     SECTION 8. This act shall take effect upon passage.
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LC001513
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