(REPRINTED WITH ADOPTED AMENDMENTS) SECOND REPRINT
Assembly Bill No. 36-Assemblymen Carpenter, Sandoval, Neighbors, de Braga, Lambert, Anderson, Dini, Amodei, Marvel, Humke, Segerblom, Giunchigliani, Hickey, Collins and Tiffany
January 23, 1997
____________
Referred to Committee on Transportation
SUMMARY--Makes various changes to provisions governing system for verifying proof of financial responsibility of owners of motor vehicles. (BDR 43-1071)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to the financial responsibility of owners of motor vehicles; making various changes regarding provisions governing the system of verification of compliance; requiring certain insurers to demonstrate their ability to comply with certain reporting requirements; directing the refund of certain fees collected; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 482.480 is hereby amended to read as follows:
482.480 There must be paid to the department for the registration or the transfer or reinstatement of the registration of motor vehicles, trailers and semitrailers, fees according to the following schedule:
1. For each stock passenger car and each reconstructed or specially constructed passenger car, regardless of weight or number of passenger capacity, a fee for registration of $33.
2. For every motorcycle, a fee for registration of $33 and for each motorcycle other than a trimobile, an additional fee of $6 for motorcycle safety. The additional fee must be deposited in the state highway fund for credit to the account for the program for the education of motorcycle riders.
3. For each transfer of registration a fee of $6 in addition to any other fees.
4. [Except as otherwise provided in NRS 485.317, to] To reinstate the registration of a motor vehicle suspended pursuant to [that section:] NRS 485.317:
(a) A fee of $250 for a registered owner who failed to have insurance on the date specified in the form for verification that was mailed by the department pursuant to subsection 2 of NRS 485.317; or
(b) A fee of $50 for a registered owner of a dormant vehicle who [had insurance on the date specified in the form for verification that was mailed by the department pursuant to subsection 2 of NRS 485.317, but failed to return the form within the time specified in that subsection,] canceled the insurance coverage for that vehicle or allowed the insurance coverage for that vehicle to expire without first canceling the registration for the vehicle in accordance with subsection 3 of NRS 485.320,
both of which must be deposited in the account for verification of insurance which is hereby created in the state highway fund. Money in the account must be used to carry out the provisions of NRS 485.313 to 485.318, inclusive.
5. For every travel trailer, a fee for registration of $27.
6. For every permit for the operation of a golf cart, an annual fee of $10.
Sec. 2. Chapter 485 of NRS is hereby amended by adding thereto a new section to read as follows:
"Dormant vehicle" means a motor vehicle:
1. For which a policy of liability insurance is required pursuant to this chapter; and
2. That will not be operated for an extended period because of mechanical or seasonal circumstances.
Sec. 3. NRS 485.020 is hereby amended to read as follows:
485.020 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 485.028 to 485.120, inclusive, and section 2 of this act have the meanings ascribed to them in those sections.
Sec. 4. NRS 485.313 is hereby amended to read as follows:
485.313 1. The department shall create a system for verifying that the owners of motor vehicles maintain the insurance required by NRS 485.185.
2. As used in this section, "motor vehicle" does not include:
(a) A golf cart, as that term is defined in NRS 482.044.
(b) A motortruck, truck tractor, bus or other vehicle that is registered pursuant to paragraph (e) of subsection 1 of NRS 482.482 or NRS 706.801 to 706.861, inclusive.
Sec. 5. NRS 485.314 is hereby amended to read as follows:
485.314 1. On or before the 15th calendar day of each month, each insurer that has executed a contract of insurance for a motor vehicle liability policy which may be used to meet the requirements of NRS 485.185 shall provide the department with a record of each such policy [in effect] amended or terminated in the previous month on the date the record is provided. The record must include:
(a) The name [and identification number] of each insured named in the policy of insurance;
(b) The make, year and vehicle identification number of each motor vehicle included in the policy of insurance;
(c) The number, effective date and expiration date of the policy of insurance; and
(d) Any other information required by the department.
2. The record provided pursuant to subsection 1 must be submitted in a form approved by the department and may include, without limitation, magnetic tape or any other electronic medium deemed acceptable by the department.
3. The department shall notify the commissioner of insurance if an insurer:
(a) Fails to comply with subsection 1 or 2; or
(b) In complying with subsection 1 or 2, provides to the department information that is false, incomplete or misleading.
Sec. 6. NRS 485.317 is hereby amended to read as follows:
485.317 1. The department shall, at least monthly, compare the current registrations of motor vehicles to the information in the data base created pursuant to NRS 485.313 to verify that [all owners of registered motor vehicles have maintained the] each motor vehicle:
(a) Which is newly registered in this state; or
(b) For which a policy of liability insurance has been amended or terminated,
is covered by a policy of liability insurance as required by NRS 485.185. In identifying a motor vehicle for verification pursuant to this subsection, the department shall, if the motor vehicle was manufactured during or after 1981, use only the vehicle identification number, in whole or in part.
2. The department shall [mail] send a form for verification by first-class mail to each registered owner that it determines has not maintained the insurance required by NRS 485.185. The owner shall complete the form with all the information which is requested by the department, including whether he carries an owner's or operator's policy of liability insurance or a certificate of self-insurance, and return the completed form within [10] 20 days after the date on which the form was mailed by the department. If the department does not receive the completed form within 20 days after it mailed the form to the owner, the department shall send to the owner a second form for verification by certified mail. The owner shall complete the form and return it to the department within 15 days after the date on which it was sent by the department. This subsection does not prohibit an authorized agent of the owner from providing to the department:
(a) The information requested by the department pursuant to this subsection.
(b) Additional information to amend or correct information already submitted to the department pursuant to this subsection.
3. When the department receives a completed form for verification it shall verify the information on the form.
4. The department shall suspend the registration [of the vehicle] and require the return to the department of the license plates of any vehicle for which [a form for verification is:
(a) Not] :
(a) Neither of the forms for verification set forth in subsection 2 is returned to the department by the registered owner [within 10 days;
(b) Returned] or his authorized agent within the period specified in that subsection;
(b) Either of the forms for verification set forth in subsection 2 is returned to the department by the registered owner or his authorized agent and the department is not able to verify the information on the form; or
(c) [Returned] Either of the forms for verification set forth in subsection 2 is returned by the registered owner or his authorized agent with an admission of having no insurance or without indicating an insurer or the number of a motor vehicle liability policy or a certificate of self-insurance.
5. If [an owner who did not return a completed] the department suspends a registration pursuant to subsection 4 because:
(a) Neither the owner nor his authorized agent returned a form for verification within the specified period [:
(a)] or the owner or his authorized agent returned a form for verification that was not completed sufficiently, and the owner or his authorized agent, thereafter:
(1) Proves to the satisfaction of the department that there was a justifiable cause for his failure to do so;
[(b)] (2) Submits a completed form regarding his insurance on the date stated in the form mailed by the department pursuant to subsection 2; and
[(c)] (3) Presents evidence of current insurance [,] ; or
(b) The owner or his authorized agent submitted to the department a form for verification containing information that the department was unable to verify and, thereafter, the owner or his authorized agent presents to the department:
(1) A corrected form or otherwise verifiable evidence setting forth that the owner possessed insurance on the date stated in the form; and
(2) Evidence of current insurance,
the department shall rescind its suspension of the registration if it is able to verify the information on the form [.] or the other evidence presented. The department shall not charge a fee to reinstate a registration, the suspension of which was rescinded pursuant to this subsection. For the purposes of this subsection, "justifiable cause" may include , but is not limited to, the fact that the owner did not receive the form mailed by the department pursuant to subsection 2.
6. Except as otherwise provided in subsection 7, if a registered owner whose registration is suspended pursuant to subsection 4, failed to have insurance on the date specified in the form for verification, the department shall reinstate the registration of the vehicle and reissue the license plates only upon filing by the registered owner of evidence of current insurance and payment of the fee for reinstatement of registration prescribed in paragraph (a) of subsection 4 of NRS 482.480.
7. If a registered owner [:
(a) Proves] proves to the satisfaction of the department that his vehicle was [not used in this state for a 30-day period, including the date on] a dormant vehicle during the period in which the information provided pursuant to NRS 485.314 indicated that there was no insurance for the vehicle , [; or
(b) Who did not return a completed form for verification within the period specified in subsection 2 subsequently proves to the satisfaction of the department that his vehicle was insured on the date stated in the form mailed by the department pursuant to subsection 2, presents to the department evidence of current insurance and pays the fee for reinstatement of registration prescribed in paragraph (b) of subsection 4 of NRS 482.480,]
the department shall reinstate his registration and , if applicable, reissue his license plates. If such an owner of a dormant vehicle failed to cancel the registration for the vehicle in accordance with subsection 3 of NRS 485.320, the department shall not reinstate his registration or reissue his license plates unless the owner pays the fee set forth in paragraph (b) of subsection 4 of NRS 482.480.
8. For the purposes of this section, a registered owner shall not be deemed to have failed to maintain liability insurance for a motor vehicle unless the vehicle is without coverage for a period of more than 7 days.
Sec. 7. NRS 485.320 is hereby amended to read as follows:
485.320 1. If the license of any person is suspended as provided in this chapter, he shall immediately return the license to the division. If his registration is suspended, he shall immediately return the certificate of registration and the license plates to the division.
2. If any person fails to return any item as required by subsection 1, the division shall forthwith direct any peace officer to secure possession thereof and to return the item to the division.
3. A person who owns a dormant vehicle who desires to cancel the policy of liability insurance covering that vehicle or to allow such a policy to expire:
(a) Shall, on or before the date on which the policy is canceled or expires, cancel the registration of the vehicle to which that policy pertains.
(b) May, if he presents the license plates for that vehicle to the authorized personnel of the division for the removal and destruction of the sticker or other device evidencing the current registration of the vehicle, retain for potential reinstatement the license plates for a period not to exceed 1 year.
4. The department shall adopt regulations which define "extended period," "mechanical circumstances" and "seasonal circumstances" for the purposes of section 2 of this act.
Sec. 8. NRS 680A.080 is hereby amended to read as follows:
680A.080 To qualify for and hold authority to transact insurance in this state, an insurer must be otherwise in compliance with this code and with its charter powers, and must be an incorporated stock or mutual insurer, or a reciprocal insurer, of the same general type as may be formed as a domestic insurer under this code, except that:
1. No foreign insurer [shall] may be authorized to transact insurance in this state which does not maintain reserves as required by chapter 681B of NRS (assets and liabilities), as applicable to the kind or kinds of insurance transacted by such insurer, wherever transacted in the United States of America, or which transacts business anywhere in the United States of America on the assessment plan, or stipulated premium plan, or any similar plan.
2. No insurer [shall] may be authorized to transact a kind of insurance in this state unless duly authorized or qualified to transact such insurance in the state or country of its domicile.
3. No insurer [shall] may be authorized to transact in this state any kind of insurance which is not within the definitions as set forth in NRS 681A.010 to 681A.080, inclusive (kinds of insurance).
4. No such authority [shall] may be granted or continued to any insurer while in arrears to the state for fees, licenses, taxes, assessments, fines or penalties accrued on business previously transacted in this state.
In addition to the other requirements set forth in this section, an insurer who proposes to transact in this state insurance that protects a policyholder from liability arising out of the ownership, maintenance or use of a motor vehicle must demonstrate to the satisfaction of the department of motor vehicles and public safety that the insurer is able to comply with the provisions of NRS 485.314.
Sec. 9. 1. The department of motor vehicles and public safety shall establish and carry out a program to refund the fee collected pursuant to paragraph (b) of subsection 4 of NRS 482.480 to each person who:
(a) According to the records of the department, paid such a fee during the period commencing on October 1, 1995, and expiring on the date on which this act becomes effective; and
(b) Requests such a refund by submitting to the department, on or before July 1, 1998, a signed statement in which the person asserts that:
(1) He did not receive the form for verification mailed to him pursuant to subsection 2 of NRS 485.317 or he returned the form for verification as required pursuant to subsection 2 of NRS 485.317; and
(2) The particular motor vehicle was covered by insurance as required pursuant to NRS 485.185.
2. The department shall not issue such a refund if the statement is postmarked after July 1, 1998.
Sec. 10. This act becomes effective upon passage and approval.