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Administration - Security Following Accident" are hereby repealed.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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