Assembly Bill No. 453–Committee on Transportation

March 10, 1999

____________

Referred to Committee on Transportation

 

SUMMARY—Provides that operator’s policy of liability insurance does not satisfy requirement for liability insurance for motor vehicle present or registered in Nevada. (BDR 43-1306)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to motor vehicles; providing that an operator’s policy of liability insurance does not satisfy the requirement for liability insurance for a motor vehicle present or registered in this state; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 482.215 is hereby amended to read as follows:

1-2 482.215 1. All applications for registration, except applications for

1-3 renewal of registration, must be made as provided in this section.

1-4 2. Applications for all registrations, except renewals of registration,

1-5 must be made in person, if practicable, to any office or agent of the

1-6 department or to a registered dealer.

1-7 3. Each application must be made upon the appropriate form furnished

1-8 by the department and contain:

1-9 (a) The signature of the owner.

1-10 (b) His residential address.

1-11 (c) His declaration of the county where he intends the vehicle to be

1-12 based, unless the vehicle is deemed to have no base. The department shall

1-13 use this declaration to determine the county to which the privilege tax is to

1-14 be paid.

1-15 (d) A brief description of the vehicle to be registered, including the

1-16 name of the maker, the engine, identification or serial number, whether the

1-17 vehicle is new or used and the last license number, if known, and the state

1-18 in which it was issued, and [upon] for the registration of a new vehicle, the

2-1 date of sale by the manufacturer or franchised and licensed dealer in this

2-2 state for the make to be registered to the person first purchasing or

2-3 operating the vehicle.

2-4 (e) Proof satisfactory to the department or registered dealer that the

2-5 applicant has provided the insurance required by NRS 485.185 and his

2-6 signed declaration that he will maintain the insurance during the period of

2-7 registration.

2-8 (f) If the insurance is provided by a contract of insurance, evidence of

2-9 that insurance provided by the insurer in the form of:

2-10 (1) A certificate of insurance on a form approved by the

2-11 commissioner of insurance; or

2-12 (2) A [card] form issued pursuant to NRS 690B.023 which identifies

2-13 the vehicle and indicates, at the time of application for registration,

2-14 coverage which [meets] complies with the requirements of NRS 485.185.

2-15 The department may file that evidence, return it to the applicant or

2-16 otherwise dispose of it.

2-17 (g) If required, evidence of the applicant’s compliance with controls

2-18 over emission.

2-19 4. The application must contain such other information as is required

2-20 by the department or registered dealer, and must be accompanied by proof

2-21 of ownership satisfactory to the department.

2-22 5. For purposes of the proof, declaration and evidence required by

2-23 paragraphs (e) and (f) of subsection 3:

2-24 (a) Vehicles which are subject to the fee for a license and the

2-25 requirements of registration of the Interstate Highway User Fee

2-26 Apportionment Act, and which are based in this state, may be declared as a

2-27 fleet by the registered owner thereof, on his original application for or

2-28 application for renewal of a proportional registration. The owner may file a

2-29 single certificate of insurance [covering] for that fleet.

2-30 (b) Other fleets composed of 10 or more vehicles based in this state or

2-31 vehicles insured under a blanket policy which does not identify individual

2-32 vehicles may each be declared annually as a fleet by the registered owner

2-33 thereof for the purposes of an application for his original or any renewed

2-34 registration. The owner may file a single certificate of insurance [covering]

2-35 for that fleet.

2-36 (c) A person who qualifies as a self-insurer pursuant to the provisions of

2-37 NRS 485.380 may file a copy of his certificate of self-insurance.

2-38 [(d) A person who qualifies for an operator’s policy of liability

2-39 insurance pursuant to the provisions of NRS 485.186 and 485.3091 may

2-40 file evidence of that insurance.]

2-41 Sec. 2. NRS 485.028 is hereby amended to read as follows:

2-42 485.028 "Certificate of financial responsibility" means the certificate

2-43 issued by an insurance carrier pursuant to NRS 485.308 certifying that

3-1 there is [a motor vehicle liability] an owner’s policy of liability insurance

3-2 in effect for a person who is required to furnish proof of financial

3-3 responsibility.

3-4 Sec. 3. NRS 485.0335 is hereby amended to read as follows:

3-5 485.0335 "Dormant vehicle" means a motor vehicle:

3-6 1. For which [a] an owner’s policy of liability insurance is required

3-7 pursuant to this chapter; and

3-8 2. That will not be operated for an extended period because of

3-9 mechanical or seasonal circumstances.

3-10 Sec. 4. NRS 485.034 is hereby amended to read as follows:

3-11 485.034 "Evidence of insurance" means:

3-12 1. The form provided by an insurer pursuant to NRS 690B.023 as

3-13 evidence of [a contract of insurance for a motor vehicle liability policy;]

3-14 an owner’s policy of liability insurance; or

3-15 2. The certificate of self-insurance issued to a self-insurer by the

3-16 [department] division pursuant to NRS 485.380.

3-17 Sec. 5. NRS 485.037 is hereby amended to read as follows:

3-18 485.037 "Insurance" means:

3-19 1. [A motor vehicle liability policy;] An owner’s policy of liability

3-20 insurance; or

3-21 2. The security provided by a self-insurer pursuant to NRS 485.380.

3-22 Sec. 6. NRS 485.186 is hereby amended to read as follows:

3-23 485.186 [1. Except as otherwise provided in subsection 6, any

3-24 natural] A person may not satisfy the requirements of NRS 485.185 by

3-25 obtaining, in lieu of an owner’s policy of liability insurance, an operator’s

3-26 policy of liability insurance . [which meets the requirements of this section

3-27 and NRS 485.3091.

3-28 2. An operator’s policy of liability insurance must state, in addition to

3-29 the requirements of NRS 485.3091, that:

3-30 (a) The insurer is only liable under the policy for liability incurred by

3-31 the insured while the named insured is the operator of a motor vehicle or

3-32 while a motor vehicle owned by the insured is not being operated by any

3-33 person;

3-34 (b) The policy does not provide coverage for any vicarious liability

3-35 imposed on the owner of the motor vehicle as a result of the operation by

3-36 another person of a motor vehicle owned by the insured or for any liability

3-37 imposed by NRS 41.440 or 483.300; and

3-38 (c) The coverage provided by the policy may not meet the requirements

3-39 of the financial responsibility laws of other states,

3-40 unless such extended coverage is expressly included in the policy. No

3-41 operator’s policy of liability insurance may be delivered or issued for

3-42 delivery in this state unless the insured has signed an endorsement stating

3-43 that he has read and understood the policy and its limitations.

4-1 3. An owner of a motor vehicle which is registered or required to be

4-2 registered in this state and who holds an operator’s policy of liability

4-3 insurance shall not permit another person to operate his motor vehicle if

4-4 the owner knows or should have known that the person does not have

4-5 liability insurance to cover his own operation of that motor vehicle.

4-6 4. An operator’s policy of liability insurance must not provide

4-7 coverage for damages incurred while a person other than the named

4-8 insured is operating a motor vehicle.

4-9 5. An operator’s policy of liability insurance must provide coverage

4-10 for liability incurred by the insured while a motor vehicle owned by the

4-11 insured is not being operated by any person.

4-12 6. This section does not apply to a lessor, dealer, manufacturer,

4-13 rebuilder or distributor of a motor vehicle, an owner of a fleet, a common,

4-14 contract or private motor carrier or any other employer who owns a motor

4-15 vehicle for use in his business.]

4-16 Sec. 7. NRS 485.187 is hereby amended to read as follows:

4-17 485.187 1. Except as otherwise provided in subsection 5, the owner

4-18 of a motor vehicle shall not:

4-19 (a) Operate the motor vehicle, if it is registered or required to be

4-20 registered in this state, without having insurance as required by NRS

4-21 485.185.

4-22 (b) Operate or knowingly permit the operation of the motor vehicle

4-23 without having evidence of insurance of the operator or the vehicle in the

4-24 vehicle.

4-25 (c) Fail or refuse to surrender, upon demand, to a peace officer or to an

4-26 authorized representative of the department the evidence of insurance.

4-27 [(d) Knowingly permit the operation of the motor vehicle in violation of

4-28 subsection 3 of NRS 485.186.]

4-29 2. A person shall not operate the motor vehicle of another person

4-30 unless:

4-31 (a) He first ensures that the required evidence of insurance is present in

4-32 the motor vehicle; or

4-33 (b) He has his own evidence of insurance which [covers] provides

4-34 coverage for him as the operator of the motor vehicle.

4-35 3. Except as otherwise provided in subsection 4, any person who

4-36 violates subsection 1 or 2 shall be punished by a fine of not less than $600

4-37 [nor] and not more than $1,000 for each violation. The fine must be

4-38 reduced to $100 for the first violation if the person obtains [a motor

4-39 vehicle liability] an owner’s policy of liability insurance not later than 30

4-40 days after the fine is imposed, unless:

4-41 (a) The person has registered the vehicle as part of a fleet of vehicles

4-42 pursuant to subsection 5 of NRS 482.215; or

5-1 (b) The person has been issued a certificate of self-insurance pursuant

5-2 to NRS 485.380.

5-3 4. A court:

5-4 (a) Shall not fine a person for a violation of paragraph (a), (b) or (c) of

5-5 subsection 1 or for a violation of subsection 2 if he presents evidence to the

5-6 court that the insurance required by NRS 485.185 was in effect at the time

5-7 demand was made for it.

5-8 (b) Except as otherwise provided in paragraph (a), may impose a fine of

5-9 $1,000 for a violation of paragraph (a), (b) or (c) of subsection 1, and

5-10 suspend the fine on the condition that the person presents proof to the court

5-11 each month for 12 months that the insurance required by NRS 485.185 is

5-12 [currently] in effect.

5-13 5. The provisions of paragraphs (b) and (c) of subsection 1 do not

5-14 apply if the motor vehicle in question displays a [valid] permit issued by

5-15 the department pursuant to subsection 1 or 2 of NRS 482.3955, or NRS

5-16 482.396, 482.3965, 482.423 or 482.424 authorizing the movement or

5-17 operation of that vehicle within [the] this state for a limited time.

5-18 Sec. 8. NRS 485.200 is hereby amended to read as follows:

5-19 485.200 1. The requirements [as] relating to security and suspension

5-20 in NRS 485.190 to 485.300, inclusive, do not apply:

5-21 (a) To the operator or owner if he had in effect at the time of the

5-22 accident [a motor vehicle liability] an owner’s policy of liability insurance

5-23 with respect to the motor vehicle involved in the accident;

5-24 (b) To the operator if there was in effect at the time of the accident [a

5-25 motor vehicle liability] an owner’s policy of liability insurance with

5-26 respect to his operation of any motor vehicle;

5-27 (c) To the operator or owner if his liability for damages resulting from

5-28 the accident is, in the judgment of the division, covered by any other form

5-29 of liability insurance policy or a bond;

5-30 (d) To any person qualifying as a self-insurer pursuant to NRS 485.380,

5-31 or to any person operating a motor vehicle for the self-insured;

5-32 (e) To the operator or the owner of a motor vehicle involved in an

5-33 accident wherein no injury or damage was caused to the person or property

5-34 of [anyone] another person other than the operator or owner;

5-35 (f) To the operator or the owner of a motor vehicle legally parked at the

5-36 time of the accident;

5-37 (g) To the owner of a motor vehicle if at the time of the accident the

5-38 vehicle was being operated without his permission, express or implied, or

5-39 was parked by a person who had been operating the motor vehicle without

5-40 permission; or

5-41 (h) If, before the date that the division would otherwise suspend the

5-42 license and registration or nonresident’s operating privilege pursuant to

5-43 NRS 485.190, there is filed with the division evidence satisfactory to [it]

6-1 the division that the person who would otherwise have to file security has

6-2 been released from liability or has received a determination in his favor at

6-3 a hearing conducted pursuant to NRS 485.191, or has been finally

6-4 adjudicated not to be liable or has executed an acknowledged written

6-5 agreement providing for the payment of an agreed amount in installments,

6-6 with respect to all claims for injuries or damages resulting from the

6-7 accident.

6-8 2. An owner who is not the operator of the motor vehicle is not exempt

6-9 from the requirements [as] relating to security and suspension in NRS

6-10 485.190 to 485.300, inclusive, if he holds a [motor vehicle] liability policy

6-11 which provides coverage only when he is operating the motor vehicle and,

6-12 at the time of the accident, another person is operating the motor vehicle

6-13 with the express or implied permission of the owner.

6-14 Sec. 9. NRS 485.308 is hereby amended to read as follows:

6-15 485.308 1. Proof of financial responsibility may be furnished by

6-16 filing with the division the written certificate of any insurance carrier

6-17 authorized to do business in this state certifying that there is in effect [a

6-18 motor vehicle liability] an owner’s policy of liability insurance for the

6-19 benefit of the person required to furnish proof of financial responsibility.

6-20 The certificate must specify its effective date and [:

6-21 (a) If the policy is an owner’s policy of liability insurance,] designate

6-22 by appropriate reference all motor vehicles covered by it . [; or

6-23 (b) If the policy is an operator’s policy of liability insurance, designate

6-24 the person covered.]

6-25 2. The department may authorize the filing of the certificates described

6-26 in subsection 1 by electronic transmission or any other means deemed

6-27 appropriate by the department.

6-28 3. An insurance carrier that certifies the existence of [a motor vehicle

6-29 liability] an owner’s policy of liability insurance pursuant to subsection 1,

6-30 must notify the division at least 10 days before the cancellation or

6-31 termination of the policy.

6-32 Sec. 10. NRS 485.309 is hereby amended to read as follows:

6-33 485.309 1. The nonresident owner of a motor vehicle not registered

6-34 in this state or a nonresident operator of a motor vehicle may give proof of

6-35 financial responsibility by filing with the division a written certificate of an

6-36 insurance carrier authorized to transact business [:

6-37 (a) If the insurance provides coverage for the vehicle,] in the state in

6-38 which the motor vehicle described in the certificate is registered [; or

6-39 (b) If the insurance provides coverage for the operator only,] , or if the

6-40 nonresident does not own a motor vehicle, in the state in which the

6-41 insured resides, if the certificate otherwise conforms to the provisions of

6-42 this chapter.

7-1 2. The division shall accept the proof upon condition that the

7-2 insurance carrier complies with the following provisions with respect to the

7-3 policies so certified:

7-4 (a) The insurance carrier shall execute a power of attorney authorizing

7-5 the director to accept service on its behalf of notice or process in any

7-6 action arising out of an accident involving a motor vehicle in this state; and

7-7 (b) The insurance carrier shall agree in writing that the policies shall be

7-8 deemed to conform with the laws of this state relating to the terms of

7-9 liability policies for owners of motor vehicles.

7-10 3. If any insurance carrier not authorized to transact business in this

7-11 state, which has qualified to furnish proof of financial responsibility,

7-12 defaults in any undertakings or agreements, the division shall not thereafter

7-13 accept as proof any certificate of that carrier whether theretofore filed or

7-14 thereafter tendered as proof, so long as the default continues.

7-15 Sec. 11. NRS 485.3091 is hereby amended to read as follows:

7-16 485.3091 1. An owner’s policy of liability insurance must:

7-17 (a) Designate by explicit description or by appropriate reference all

7-18 motor vehicles with respect to which coverage is thereby to be granted . [;

7-19 and]

7-20 (b) Insure the person named therein and any other person, as insured,

7-21 using [any such] the motor vehicle with the express or implied permission

7-22 of the named insured, against loss from the liability imposed by law for

7-23 damages arising out of the ownership, maintenance or use of [such] the

7-24 motor vehicle within the United States of America or the Dominion of

7-25 Canada, subject to limits exclusive of interest and costs, with respect to

7-26 each [such] motor vehicle, as follows:

7-27 (1) Because of bodily injury to or death of one person in any one

7-28 accident, $15,000;

7-29 (2) Subject to the limit for one person, because of bodily injury to or

7-30 death of two or more persons in any one accident, $30,000; and

7-31 (3) Because of injury to or destruction of property of others in any

7-32 one accident, $10,000.

7-33 [2. An operator’s policy of liability insurance must insure the person

7-34 named as insured therein against loss from the liability imposed upon him

7-35 by law for damages arising out of the use by him of any motor vehicle

7-36 within the same territorial limits and subject to the same limits of liability

7-37 as are set forth in paragraph (b) of subsection 1.

7-38 3. A motor vehicle liability policy must state]

7-39 (c) Set forth the name and address of the named insured, the coverage

7-40 afforded by the policy, the premium charged therefor, the period of

7-41 effectiveness and the limits of liability, and must contain an agreement or

7-42 be endorsed that insurance is provided thereunder in accordance with the

7-43 coverage defined in this chapter as respects bodily injury and death or

8-1 property damage, or both, and is subject to all the provisions of this

8-2 chapter.

8-3 [4. A motor vehicle liability]

8-4 2. An owner’s policy of liability insurance need not insure any

8-5 liability under any workmen’s compensation law [nor] or any liability on

8-6 account of bodily injury to or the death of an employee of the insured

8-7 while engaged in the employment, other than domestic, of the insured, or

8-8 while engaged in the operation, maintenance or repair of any motor vehicle

8-9 owned by the insured [nor] or any liability for damage to property owned

8-10 by, rented to, in the charge of or transported by the insured.

8-11 [5. Every motor vehicle liability]

8-12 3. An owner’s policy of liability insurance is subject to the following

8-13 provisions which need not be contained [therein:] in the policy:

8-14 (a) The liability of the insurance carrier with respect to the insurance

8-15 required by this chapter becomes absolute whenever injury or damage

8-16 covered by the policy occurs. The policy may not be canceled or annulled

8-17 as to [such] that liability by any agreement between the insurance carrier

8-18 and the insured after the occurrence of the injury or damage. No statement

8-19 made by the insured or on his behalf and no violation of the policy defeats

8-20 or voids the policy.

8-21 (b) The satisfaction by the insured of a judgment for injury or damage is

8-22 not a condition precedent to the right or duty of the insurance carrier to

8-23 make payment on account of the injury or damage.

8-24 (c) The insurance carrier may settle any claim covered by the policy,

8-25 and if such a settlement is made in good faith, the amount [thereof] of the

8-26 settlement is deductible from the limits of liability specified in paragraph

8-27 (b) of subsection 1.

8-28 (d) The policy, the written application therefor, if any, and any rider or

8-29 endorsement which does not conflict with the provisions of this chapter

8-30 constitute the entire contract between the parties.

8-31 [6.] 4. Any policy which grants the coverage required for [a motor

8-32 vehicle liability] an owner’s policy of liability insurance may also grant

8-33 any lawful coverage in excess of or in addition to the coverage specified

8-34 for [a motor vehicle liability policy,] an owner’s policy of liability

8-35 insurance, and the excess or additional coverage is not subject to the

8-36 provisions of this chapter.

8-37 [7. Any motor vehicle liability]

8-38 5. An owner’s policy of liability insurance may provide for the

8-39 prorating of the insurance thereunder with other [valid and] collectible

8-40 insurance.

8-41 [8.] 6. The requirements for [a motor vehicle liability] an owner’s

8-42 policy of liability insurance may be fulfilled by the policies of one or more

9-1 insurance carriers, which policies together [meet] comply with those

9-2 requirements.

9-3 [9.] 7. Any binder issued pending the issuance of [a motor vehicle

9-4 liability] an owner’s policy of liability insurance shall be deemed to fulfill

9-5 the requirements for such a policy.

9-6 Sec. 12. NRS 485.3092 is hereby amended to read as follows:

9-7 485.3092 When an insurance carrier has issued [a motor vehicle

9-8 liability policy,] an owner’s policy of liability insurance, the insurance [so

9-9 issued] must not be canceled or terminated until at least 10 days after a

9-10 notice of cancellation or termination of the insurance has been mailed first

9-11 class or delivered to the insured and, if the insurance carrier has certified

9-12 the policy under NRS 485.308 or 485.309, a notice has also been filed in

9-13 the office of the division. A policy subsequently procured and certified, on

9-14 the effective date of its certification, terminates the insurance previously

9-15 certified with respect to any motor vehicle designated or the person named

9-16 as the insured operator in both certificates. If the effective date of the

9-17 termination is within 3 years after the date of reinstatement of a license,

9-18 registration or privilege, the division shall suspend the license and

9-19 registration or privilege.

9-20 Sec. 13. NRS 485.314 is hereby amended to read as follows:

9-21 485.314 1. On or before the 15th calendar day of each month, each

9-22 insurer that has executed a contract of insurance for [a motor vehicle

9-23 liability] an owner’s policy of liability insurance which may be used to

9-24 [meet] comply with the requirements of NRS 485.185 shall provide the

9-25 department with a record of each such policy issued, amended or

9-26 terminated in the previous month on the date the record is provided. The

9-27 record must include:

9-28 (a) The name or identification number of each insured named in the

9-29 policy of insurance;

9-30 (b) The make, year and vehicle identification number of each motor

9-31 vehicle included in the policy of insurance;

9-32 (c) The number, effective date and expiration date of the policy of

9-33 insurance; and

9-34 (d) Any other information required by the department.

9-35 2. The record provided pursuant to subsection 1 must be submitted in a

9-36 form approved by the department and may include, without limitation,

9-37 magnetic tape or any other electronic medium deemed acceptable by the

9-38 department.

9-39 3. The department shall notify the commissioner of insurance if an

9-40 insurer:

9-41 (a) Fails to comply with subsection 1 or 2; or

9-42 (b) In complying with subsection 1 or 2, provides to the department

9-43 information that is false, incomplete or misleading.

10-1 Sec. 14. NRS 485.317 is hereby amended to read as follows:

10-2 485.317 1. The department shall, at least monthly, compare the

10-3 current registrations of motor vehicles to the information in the data base

10-4 created pursuant to NRS 485.313 to verify that each motor vehicle:

10-5 (a) Which is newly registered in this state; or

10-6 (b) For which a policy of liability insurance has been issued, amended

10-7 or terminated,

10-8 is covered by [a policy of liability] insurance as required by NRS 485.185.

10-9 In identifying a motor vehicle for verification pursuant to this subsection,

10-10 the department shall, if the motor vehicle was manufactured during or after

10-11 1981, use only the vehicle identification number, in whole or in part.

10-12 2. The department shall send a form for verification by first-class mail

10-13 to each registered owner that it determines has not maintained the

10-14 insurance required by NRS 485.185. The owner shall complete the form

10-15 with all the information which is requested by the department, including

10-16 whether he carries an owner’s [or operator’s] policy of liability insurance

10-17 or a certificate of self-insurance, and return the completed form within 20

10-18 days after the date on which the form was mailed by the department. If the

10-19 department does not receive the completed form within 20 days after it

10-20 mailed the form to the owner, the department shall send to the owner a

10-21 second form for verification by certified mail. The owner shall complete

10-22 the form and return it to the department within 15 days after the date on

10-23 which it was sent by the department. [This subsection does] The provisions

10-24 of this subsection do not prohibit an authorized agent of the owner from

10-25 providing to the department:

10-26 (a) The information requested by the department pursuant to this

10-27 subsection.

10-28 (b) Additional information to amend or correct information already

10-29 submitted to the department pursuant to this subsection.

10-30 3. When the department receives a completed form for verification it

10-31 shall verify the information on the form.

10-32 4. The department shall suspend the registration and require the return

10-33 to the department of the license plates of any vehicle for which:

10-34 (a) Neither of the forms for verification set forth in subsection 2 is

10-35 returned to the department by the registered owner or his authorized agent

10-36 within the period specified in that subsection;

10-37 (b) Either of the forms for verification set forth in subsection 2 is

10-38 returned to the department by the registered owner or his authorized agent

10-39 and the department is not able to verify the information on the form; or

10-40 (c) Either of the forms for verification set forth in subsection 2 is

10-41 returned by the registered owner or his authorized agent with an admission

10-42 of having no insurance or without indicating an insurer or the number of a

10-43 motor vehicle liability policy or a certificate of self-insurance.

11-1 5. If the department suspends a registration pursuant to subsection 4

11-2 because:

11-3 (a) Neither the owner nor his authorized agent returned a form for

11-4 verification within the specified period or the owner or his authorized

11-5 agent returned a form for verification that was not completed sufficiently,

11-6 and the owner or his authorized agent, thereafter:

11-7 (1) Proves to the satisfaction of the department that there was a

11-8 justifiable cause for his failure to do so;

11-9 (2) Submits a completed form regarding his insurance on the date

11-10 stated in the form mailed by the department pursuant to subsection 2; and

11-11 (3) Presents evidence of current insurance; or

11-12 (b) The owner or his authorized agent submitted to the department a

11-13 form for verification containing information that the department was

11-14 unable to verify and, thereafter, the owner or his authorized agent presents

11-15 to the department:

11-16 (1) A corrected form or otherwise verifiable evidence setting forth

11-17 that the owner possessed insurance on the date stated in the form; and

11-18 (2) Evidence of current insurance,

11-19 the department shall rescind its suspension of the registration if it is able to

11-20 verify the information on the form or the other evidence presented. The

11-21 department shall not charge a fee to reinstate a registration, the suspension

11-22 of which was rescinded pursuant to this subsection. For the purposes of

11-23 this subsection, "justifiable cause" may include, but is not limited to, the

11-24 fact that the owner did not receive the form mailed by the department

11-25 pursuant to subsection 2.

11-26 6. Except as otherwise provided in subsection 7, if a registered owner

11-27 whose registration is suspended pursuant to subsection 4, failed to have

11-28 insurance on the date specified in the form for verification, the department

11-29 shall reinstate the registration of the vehicle and reissue the license plates

11-30 only upon filing by the registered owner of evidence of current insurance

11-31 and payment of the fee for reinstatement of registration prescribed in

11-32 paragraph (a) of subsection 6 of NRS 482.480.

11-33 7. If a registered owner proves to the satisfaction of the department

11-34 that his vehicle was a dormant vehicle during the period in which the

11-35 information provided pursuant to NRS 485.314 indicated that there was no

11-36 insurance for the vehicle, the department shall reinstate his registration

11-37 and, if applicable, reissue his license plates. If such an owner of a dormant

11-38 vehicle failed to cancel the registration for the vehicle in accordance with

11-39 subsection 3 of NRS 485.320, the department shall not reinstate his

11-40 registration or reissue his license plates unless the owner pays the fee set

11-41 forth in paragraph (b) of subsection 6 of NRS 482.480.

11-42 8. For the purposes of verification of insurance by the department

11-43 pursuant to this section, a registered owner shall not be deemed to have

12-1 failed to maintain [liability] insurance for a motor vehicle unless the

12-2 vehicle is without coverage for a period of more than 7 days.

12-3 Sec. 15. NRS 690B.020 is hereby amended to read as follows:

12-4 690B.020 1. Except as otherwise provided in this section [and NRS

12-5 690B.035, no] , a policy insuring against liability arising out of the

12-6 ownership, maintenance or use of any motor vehicle may not be delivered

12-7 or issued for delivery in this state unless coverage is provided therein or

12-8 supplemental thereto for the protection of persons insured thereunder who

12-9 are legally entitled to recover damages, from owners or operators of

12-10 uninsured or hit-and-run motor vehicles, for bodily injury, sickness or

12-11 disease, including death, resulting from the ownership, maintenance or use

12-12 of the uninsured or hit-and-run motor vehicle. No such coverage is

12-13 required in or supplemental to a policy issued to the State of Nevada or any

12-14 political subdivision thereof, or where rejected in writing, on a form

12-15 furnished by the insurer describing the coverage being rejected, by an

12-16 insured named therein, or upon any renewal of such a policy unless the

12-17 coverage is then requested in writing by the named insured. The coverage

12-18 required in this section may be referred to as "uninsured vehicle coverage."

12-19 2. The amount of coverage to be provided must be not less than the

12-20 minimum limits for liability insurance for bodily injury provided for under

12-21 chapter 485 of NRS, but may be in an amount not to exceed the coverage

12-22 for bodily injury purchased by the policyholder.

12-23 3. [For the purposes of] As used in this section the term "uninsured

12-24 motor vehicle" means a motor vehicle:

12-25 (a) With respect to which there is not available at the department of

12-26 motor vehicles and public safety evidence of financial responsibility as

12-27 required by chapter 485 of NRS;

12-28 (b) With respect to the ownership, maintenance or use of which there is

12-29 no liability insurance for bodily injury or bond applicable at the time of the

12-30 accident, or, to the extent of [such] the deficiency, any liability insurance

12-31 for bodily injury or bond in force is less than the amount required by NRS

12-32 485.210;

12-33 (c) With respect to the ownership, maintenance or use of which the

12-34 company writing any applicable liability insurance for bodily injury or

12-35 bond denies coverage or is insolvent;

12-36 (d) Used without the permission of its owner if there is no liability

12-37 insurance for bodily injury or bond applicable to the operator;

12-38 (e) Used with the permission of its owner who has insurance which

12-39 does not provide coverage for the operation of the motor vehicle by any

12-40 person other than the owner if there is no liability insurance for bodily

12-41 injury or bond applicable to the operator; or

12-42 (f) The owner or operator of which is unknown or after reasonable

12-43 diligence cannot be found if:

13-1 (1) The bodily injury or death has resulted from physical contact of

13-2 the automobile with the named insured or the person claiming under him

13-3 or with an automobile which the named insured or such a person is

13-4 occupying; and

13-5 (2) The named insured or someone on his behalf has reported the

13-6 accident within the time required by NRS 484.223, 484.225 or 484.227 to

13-7 the police department of the city where it occurred, or if it occurred in an

13-8 unincorporated area, to the sheriff of the county or to the Nevada highway

13-9 patrol.

13-10 4. [For the purposes of] As used in this section the term "uninsured

13-11 motor vehicle" [also] includes, subject to the terms and conditions of

13-12 coverage, an insured other motor vehicle where:

13-13 (a) The liability insurer of the other motor vehicle is unable because of

13-14 its insolvency to make payment with respect to the legal liability of its

13-15 insured within the limits specified in its policy;

13-16 (b) The occurrence out of which legal liability arose took place while

13-17 the uninsured vehicle coverage required under paragraph (a) was in effect;

13-18 and

13-19 (c) The insolvency of the liability insurer of the other motor vehicle

13-20 existed at the time of, or within 2 years after, the occurrence.

13-21 [Nothing contained in this subsection prevents] The provisions of this

13-22 subsection do not prevent any insurer from providing protection from

13-23 insolvency to its insureds under more favorable terms.

13-24 5. If payment is made to any person under uninsured vehicle coverage,

13-25 and subject to the terms of the coverage, to the extent of [such] that

13-26 payment the insurer is entitled to the proceeds of any settlement or

13-27 recovery from any person legally responsible for the bodily injury as to

13-28 which payment was made, and to amounts recoverable from the assets of

13-29 the insolvent insurer of the other motor vehicle.

13-30 6. A vehicle involved in a collision which results in bodily injury or

13-31 death [shall] must be presumed to be an uninsured motor vehicle if no

13-32 evidence of financial responsibility is supplied to the department of motor

13-33 vehicles and public safety in the manner required by chapter 485 of NRS

13-34 within 60 days after the collision occurs.

13-35 Sec. 16. NRS 690B.023 is hereby amended to read as follows:

13-36 690B.023 If insurance for the operation of a motor vehicle required

13-37 pursuant to NRS 485.185 is provided by [a contract] an owner’s policy of

13-38 liability insurance, the insurer shall:

13-39 1. Provide evidence of insurance to the insured on a form approved by

13-40 the commissioner. The evidence of insurance must include:

13-41 (a) The name and address of the policyholder;

13-42 (b) The name and address of the insurer;

14-1 (c) The year, make and complete identification number of the insured

14-2 vehicle or vehicles;

14-3 (d) The term of the insurance, including the day, month and year on

14-4 which the policy:

14-5 (1) Becomes effective; and

14-6 (2) Expires;

14-7 (e) The number of the policy;

14-8 (f) A statement that the coverage [meets] complies with the

14-9 requirements set forth in NRS 485.185; and

14-10 (g) The statement "This card must be carried in the insured motor

14-11 vehicle for production upon demand." The statement must be prominently

14-12 displayed.

14-13 2. Provide new evidence of insurance if:

14-14 (a) The information regarding the insured vehicle or vehicles required

14-15 pursuant to paragraph (c) of subsection 1 no longer is accurate;

14-16 (b) An additional motor vehicle is added to the policy;

14-17 (c) A new number is assigned to the policy; or

14-18 (d) The insured notifies the insurer that the original evidence of

14-19 insurance has been lost.

14-20 Sec. 17. 1. NRS 485.055 is hereby repealed.

14-21 2. NRS 690B.035 is hereby repealed.

14-22 Sec. 18. Each insurer who has issued operators’ policies of liability

14-23 insurance pursuant to NRS 485.186 which are in effect on July 1, 1999,

14-24 shall:

14-25 1. Not renew an operator’s policy of liability insurance; and

14-26 2. Not later than October 1, 1999, send a written notice to each holder

14-27 of an operator’s policy of liability insurance issued by the insurer which

14-28 states that the policy will not satisfy the requirements for insurance for the

14-29 payment of liability arising from the maintenance or use of a motor vehicle

14-30 set forth in NRS 485.185 after December 31, 1999.

14-31 Sec. 19. 1. This section, subsection 2 of section 17 and section 18 of

14-32 this act become effective on July 1, 1999.

14-33 2. Sections 1 to 16, inclusive, and subsection 1 of section 17 become

14-34 effective on January 1, 2000.

 

14-35 TEXT OF REPEALED SECTIONS

 

14-36 485.055 "Motor vehicle liability policy" defined.

14-37 1. "Motor vehicle liability policy" means an owner’s policy of liability

14-38 insurance or an operator’s policy of liability insurance issued by an insurer

15-1 authorized to transact business in this state, to or for the benefit of the

15-2 person named therein as insured.

15-3 2. With respect to a policy which grants excess or additional coverage

15-4 over that required by NRS 485.3091, the term "motor vehicle liability

15-5 policy" applies only to that part of the coverage which is required by NRS

15-6 485.3091.

15-7 690B.035 Policy covering damage to one or more of operator’s

15-8 vehicles. An insurer may issue to a holder of an operator’s policy of

15-9 liability insurance a policy covering damage to one or more of the

15-10 operator’s vehicles. The policy is not required to provide liability insurance

15-11 or uninsured vehicle coverage.

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