Senate Bill No. 5–Joint Rules Committee

 

CHAPTER..........

 

AN ACT relating to insurance for motor vehicles; specifying that any information except the name of the owner of a motor vehicle may be used as the primary means to verify that a motor vehicle is insured; providing that an operator’s policy of liability insurance may only be issued to certain persons; allowing the release of information related to insurance policies under certain circumstances; 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.  Except as otherwise provided in this section, for each stock

 passenger car and each reconstructed or specially constructed passenger

 car registered to a person, regardless of weight or number of passenger

 capacity, a fee for registration of $33.

   2.  Except as otherwise provided in subsection 3:

   (a) For each of the fifth and sixth such cars registered to a person, a fee

 for registration of $16.50.

   (b) For each of the seventh and eighth such cars registered to a person, a

 fee for registration of $12.

   (c) For each of the ninth or more such cars registered to a person, a fee

 for registration of $8.

   3.  The fees specified in subsection 2 do not apply:

   (a) Unless the person registering the cars presents to the department at

 the time of registration the registrations of all of the cars registered to him.

   (b) To cars that are part of a fleet.

   4.  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.

   5.  For each transfer of registration, a fee of $6 in addition to any other

 fees.

   6.  Except as otherwise provided in subsection [8] 9 of NRS 485.317,

 to reinstate the registration of a motor vehicle suspended pursuant to that

 section:

   (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] 3 of NRS 485.317; or

   (b) A fee of $50 for a registered owner of a dormant vehicle who

 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. The money in


the account must be used to carry out the provisions of NRS 485.313 to

485.318, inclusive.

   7.  For every travel trailer, a fee for registration of $27.

   8.  For every permit for the operation of a golf cart, an annual fee of

 $10.

   9.  For every low-speed vehicle, as that term is defined in

NRS 484.527, a fee for registration of $33.

   10.  To reinstate the registration of a motor vehicle that is suspended

 pursuant to NRS 482.451, a fee of $33.

   Sec. 2.  NRS 485.186 is hereby amended to read as follows:

   485.186  1.  Except as otherwise provided in subsection [6,] 7, any

 natural person may satisfy the requirements of NRS 485.185 by obtaining,

 in lieu of an owner’s policy of liability insurance, an operator’s policy of

 liability insurance which meets the requirements of this section and NRS

 485.3091.

   2. An operator’s policy of liability insurance may only be issued to a

 person if:

   (a) The number of motor vehicles that he owns is greater than the

 number of persons in his household who possess a driver’s license; and

   (b) Each person in his household who possesses a driver’s license is

 covered by an operator’s policy of liability insurance.

   3. An operator’s policy of liability insurance must state, in addition to

 the requirements of NRS 485.3091, that:

   (a) The insurer is only liable under the policy for liability incurred by

 the insured while the named insured is the operator of a motor vehicle or

 while a motor vehicle owned by the insured is not being operated by any

 person;

   (b) The policy does not provide coverage for any vicarious liability

 imposed on the owner of the motor vehicle as a result of the operation by

 another person of a motor vehicle owned by the insured or for any liability

 imposed by NRS 41.440 or 483.300; and

   (c) The coverage provided by the policy may not meet the requirements

 of the financial responsibility laws of other states,

unless such extended coverage is expressly included in the policy. No

 operator’s policy of liability insurance may be delivered or issued for

 delivery in this state unless the insured has signed an endorsement stating

 that he has read and understood the policy and its limitations.

   [3.] 4.  An owner of a motor vehicle which is registered or required to

 be registered in this state and who holds an operator’s policy of liability

 insurance shall not permit another person to operate his motor vehicle if

 the owner knows or should have known that the person does not have

 liability insurance to cover his own operation of that motor vehicle.

   [4.] 5.  An operator’s policy of liability insurance must not provide

 coverage for damages incurred while a person other than the named

 insured is operating a motor vehicle.

   [5.] 6.  An operator’s policy of liability insurance must provide

 coverage for liability incurred by the insured while a motor vehicle owned

 by the insured is not being operated by any person.

   [6.] 7.  This section does not apply to a lessor, dealer, manufacturer,

 rebuilder or distributor of a motor vehicle, an owner of a fleet, a common,


contract or private motor carrier or any other employer who owns a motor

vehicle for use in his business.

   Sec. 3.  NRS 485.316 is hereby amended to read as follows:

   485.316  1.  Except as otherwise provided in subsections 2 and 3,

 information which is maintained in the database created pursuant to

NRS 485.313 is confidential.

   2.  The department may only disclose information which is maintained

 in the database, upon request, to a state or local governmental agency for

 the purpose of enforcing NRS 485.185, including investigating or

 litigating a violation or alleged violation.

   3.  The department may only disclose information retrieved from the

 database to:

   (a) A person who requests information regarding his own status;

   (b) The parent or legal guardian of the person about whom the

 information is requested if the person is an unemancipated minor or

 legally incapacitated;

   (c) A person who has a power of attorney from the person about whom

 the information is requested;

   (d) A person who submits a notarized release from the person about

 whom the information is requested which is dated no more than 90 days

 before the date of the request; or

   (e) A person who has suffered a loss or injury in an accident involving a

 motor vehicle , or his authorized insurer or a representative of his

 authorized insurer, who requests [information] :

     (1) Information for use in the accident report[.] ; and

     (2) For each motor vehicle involved in the accident:

        (I) The name and address of each registered owner;

        (II) The name of the insurer; and

        (III) The number of the policy of liability insurance.

   4.  A person who knowingly violates the provisions of this section is

 guilty of a category D felony and shall be punished as provided in

NRS 193.130.

   5.  As used in this section, “authorized insurer” has the meaning

 ascribed to it in NRS 679A.030.

   Sec. 4.  NRS 485.317 is hereby amended to read as follows:

   485.317  1.  [The] Subject to the limitations set forth in this

 subsection and subsection 2, the department shall, at least monthly,

 compare the current registrations of motor vehicles to the information in

 the database created pursuant to NRS 485.313 to verify that each motor

 vehicle:

   (a) Which is newly registered in this state; or

   (b) For which a policy of liability insurance has been issued, 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,] may, if the motor vehicle was manufactured during or

 after 1981, use only the last eight digits of the vehicle identification

 number . [, in whole or in part.] In comparing the vehicle identification

 number of a motor vehicle to the vehicle identification number in a

 policy of liability insurance, to determine if the two vehicle identification


numbers match, the department may find that the two vehicle

identification numbers match if no fewer than seven of the last eight

 digits of the two vehicle identification numbers match.

   2.  [The] Except as otherwise provided in this subsection, the

 department may use any information to verify, pursuant to subsection 1,

 whether the motor vehicle is covered by a policy of liability insurance as

 required by NRS 485.185. The department may not use the name of the

 owner of a motor vehicle as the primary means of verifying that a motor

 vehicle is covered by a policy of liability insurance.

   3.  If, pursuant to subsection 1, the department determines that a

 motor vehicle is not covered by a policy of liability insurance as required

 by NRS 485.185, the department shall send a form for verification by

 first-class mail to each registered owner that it determines has not

 maintained the insurance reqired 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 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.] 4.  When the department receives a completed form for

verification , it shall verify the information on the form.

   [4.] 5.  The department shall suspend the registration and require the

 return to the department of the license plates of any vehicle for which:

   (a) Neither of the forms for verification set forth in subsection [2] 3 is

 returned to the department by the registered owner or his authorized agent

 within the period specified in that subsection;

   (b) Either of the forms for verification set forth in subsection [2] 3 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) Either of the forms for verification set forth in subsection [2] 3 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.] 6.  If the department suspends a registration pursuant to subsection

 [4] 5 because:

   (a) Neither the owner nor his authorized agent returned a form for

 verification within the specified period 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;


     (2) Submits a completed form regarding his insurance on the date

stated in the form mailed by the department pursuant to subsection [2;] 3;

 and

     (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.] 3.

   [6.] 7.  Except as otherwise provided in [subsection 7,] subsections 8

 and 9, if a registered owner whose registration is suspended pursuant to

 subsection [4,] 5, 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 6 of

 NRS 482.480.

   [7.] 8.  If a registered owner proves to the satisfaction of the department

 that his vehicle was 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, 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 6 of NRS 482.480.

   [8.] 9.  If the department suspends the registration of a motor vehicle

 pursuant to subsection [4] 5 because the registered owner of the motor

 vehicle failed to have insurance on the date specified in the form for

 verification, and if the registered owner, in accordance with regulations

 adopted by the department, proves to the satisfaction of the department

 that he was unable to comply with the provisions of NRS 485.185 on that

 date because of extenuating circumstances, the department may:

   (a) Reinstate the registration of the motor vehicle and reissue the license

 plates upon payment by the registered owner of a fee of $50, which must

 be deposited in the account for verification of insurance created by

 subsection 6 of NRS 482.480; or

   (b) Rescind the suspension of the registration without the payment of a

 fee.

The department shall adopt regulations to carry out the provisions of this

 subsection.


   [9.] 10. For the purposes of verification of insurance by the department

pursuant to this section, a [registered owner shall not] motor vehicle shall

 be deemed to [have failed to maintain] be covered by liability insurance

 [for a motor vehicle] unless the motor vehicle is without coverage for a

 period of more than 7 days.

   Sec. 5.  1.  This section and section 3 of this act become effective on

 July 1, 2001.

   2.  Sections 1, 2 and 4 of this act become effective on January 1, 2002.

 

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