Amendment No. 994

Senate Amendment to Assembly Bill No. 272 First Reprint (BDR 43-572)

Proposed by: Committee on Transportation

Amendment Box: Replaces Amendment No. 745.

Resolves Conflicts with: N/A

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend the bill as a whole by deleting sections 1 and 2 and inserting new sections designated sections 1 through 16 to read as follows:

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

482.215 1. All applications for registration, except applications for renewal of registration, must be made as provided in this section.

2. Applications for all registrations, except renewals of registration, must be made in person, if practicable, to any office or agent of the department or to a registered dealer.

3. Each application must be made upon the appropriate form furnished by the department and contain:

(a) The signature of the owner.

(b) His residential address.

(c) His declaration of the county where he intends the vehicle to be based, unless the vehicle is deemed to have no base. The department shall use this declaration to determine the county to which the privilege tax is to be paid.

(d) A brief description of the vehicle to be registered, including the name of the maker, the engine, identification or serial number, whether the vehicle is new or used and the last license number, if known, and the state in which it was issued, and [upon] for the registration of a new vehicle, the date of sale by the manufacturer or franchised and licensed dealer in this state for the make to be registered to the person first purchasing or operating the vehicle.

(e) Proof satisfactory to the department or registered dealer that the applicant has provided the insurance required by NRS 485.185 and his signed declaration that he will maintain the insurance during the period of registration.

(f) If the insurance is provided by a contract of insurance, evidence of that insurance provided by the insurer in the form of:

(1) A certificate of insurance on a form approved by the commissioner of insurance; or

(2) A [card] form issued pursuant to NRS 690B.023 which identifies the vehicle and indicates, at the time of application for registration, coverage which [meets] complies with the requirements of NRS 485.185.

The department may file that evidence, return it to the applicant or otherwise dispose of it.

(g) If required, evidence of the applicant’s compliance with controls over emission.

4. The application must contain such other information as is required by the department or registered dealer, and must be accompanied by proof of ownership satisfactory to the department.

5. For purposes of the proof, declaration and evidence required by paragraphs (e) and (f) of subsection 3:

(a) Vehicles which are subject to the fee for a license and the requirements of registration of the Interstate Highway User Fee Apportionment Act, and which are based in this state, may be declared as a fleet by the registered owner thereof, on his original application for or application for renewal of a proportional registration. The owner may file a single certificate of insurance [covering] for that fleet.

(b) Other fleets composed of 10 or more vehicles based in this state or vehicles insured under a blanket policy which does not identify individual vehicles may each be declared annually as a fleet by the registered owner thereof for the purposes of an application for his original or any renewed registration. The owner may file a single certificate of insurance [covering] for that fleet.

(c) A person who qualifies as a self-insurer pursuant to the provisions of NRS 485.380 may file a copy of his certificate of self-insurance.

[(d) A person who qualifies for an operator’s policy of liability insurance pursuant to the provisions of NRS 485.186 and 485.3091 may file evidence of that insurance.]

Sec. 2. Chapter 485 of NRS is hereby amended by adding thereto a new section to read as follows:

1. 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.

2. 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.

3. 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.

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

485.0335 "Dormant vehicle" means a motor vehicle:

1. For which [a] an owner’s 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. 4. NRS 485.034 is hereby amended to read as follows:

485.034 "Evidence of insurance" means:

1. The form provided by an insurer pursuant to NRS 690B.023 as evidence of [a contract of insurance for a motor vehicle liability policy;] an owner’s policy of liability insurance; or

2. The certificate of self-insurance issued to a self-insurer by the [department] division pursuant to NRS 485.380.

Sec. 5. NRS 485.186 is hereby amended to read as follows:

485.186 [1. Except as otherwise provided in subsection 6, any natural] A person may not 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 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. 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. 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. 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. 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. 6. NRS 485.187 is hereby amended to read as follows:

485.187 1. Except as otherwise provided in subsection 5, the owner of a motor vehicle shall not:

(a) Operate the motor vehicle, if it is registered or required to be registered in this state, without having insurance as required by NRS 485.185.

(b) Operate or knowingly permit the operation of the motor vehicle without having evidence of insurance of the operator or the vehicle in the vehicle.

(c) Fail or refuse to surrender, upon demand, to a peace officer or to an authorized representative of the department the evidence of insurance.

(d) Knowingly permit the operation of the motor vehicle in violation of subsection 3 of NRS 485.186.

2. A person shall not operate the motor vehicle of another person unless:

(a) He first ensures that the required evidence of insurance is present in the motor vehicle; or

(b) He has his own evidence of insurance which [covers] provides coverage for him as the operator of the motor vehicle.

3. Except as otherwise provided in subsection 4, any person who violates subsection 1 or 2 is guilty of a misdemeanor. Except as otherwise provided in this subsection, in addition to any other penalty, a person sentenced pursuant to this subsection shall be punished by a fine of not less than $600 [nor] and not more than $1,000 for each violation. The fine must be reduced to $100 for the first violation if the person obtains a motor vehicle liability policy [not later than 30 days after the fine is imposed,] of liability insurance by the time of sentencing, unless:

(a) The person has registered the vehicle as part of a fleet of vehicles pursuant to subsection 5 of NRS 482.215; or

(b) The person has been issued a certificate of self-insurance pursuant to NRS 485.380.

4. A court:

(a) Shall not find a person guilty or fine a person for a violation of paragraph (a), (b) or (c) of subsection 1 or for a violation of subsection 2 if he presents evidence to the court that the insurance required by NRS 485.185 was in effect at the time demand was made for it.

(b) Except as otherwise provided in paragraph (a), may impose a fine of not more than $1,000 for a violation of paragraph (a), (b) or (c) of subsection 1, and suspend a portion of the fine on the condition that the person presents proof to the court each month for 12 months that the insurance required by NRS 485.185 is [currently] in effect.

5. The provisions of paragraphs (b) and (c) of subsection 1 do not apply if the motor vehicle in question displays a [valid] permit issued by the department pursuant to subsection 1 or 2 of NRS 482.3955, or NRS 482.396, 482.3965, 482.423 or 482.424 authorizing the movement or operation of that vehicle within [the] this state for a limited time.

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

485.187 1. Except as otherwise provided in subsection 5, the owner of a motor vehicle shall not:

(a) Operate the motor vehicle, if it is registered or required to be registered in this state, without having insurance as required by NRS 485.185.

(b) Operate or knowingly permit the operation of the motor vehicle without having evidence of insurance of the operator or the vehicle in the vehicle.

(c) Fail or refuse to surrender, upon demand, to a peace officer or to an authorized representative of the department the evidence of insurance.

[(d) Knowingly permit the operation of the motor vehicle in violation of subsection 3 of NRS 485.186.]

2. A person shall not operate the motor vehicle of another person unless:

(a) He first ensures that the required evidence of insurance is present in the motor vehicle; or

(b) He has his own evidence of insurance which provides coverage for him as the operator of the motor vehicle.

3. Except as otherwise provided in subsection 4, any person who violates subsection 1 or 2 is guilty of a misdemeanor. Except as otherwise provided in this subsection, in addition to any other penalty, a person sentenced pursuant to this subsection shall be punished by a fine of not less than $600 and not more than $1,000 for each violation. The fine must be reduced to $100 for the first violation if the person obtains [a motor vehicle liability] an owner’s policy of liability insurance by the time of sentencing, unless:

(a) The person has registered the vehicle as part of a fleet of vehicles pursuant to subsection 5 of NRS 482.215; or

(b) The person has been issued a certificate of self-insurance pursuant to NRS 485.380.

4. A court:

(a) Shall not find a person guilty or fine a person for a violation of [paragraph (a), (b) or (c) of] subsection 1 or [for a violation of subsection] 2 if he presents evidence to the court that the insurance required by NRS 485.185 was in effect at the time demand was made for it.

(b) Except as otherwise provided in paragraph (a), may impose a fine of not more than $1,000 for a violation of [paragraph (a), (b) or (c) of] subsection 1, and suspend a portion of the fine on the condition that the person presents proof to the court each month for 12 months that the insurance required by NRS 485.185 is in effect.

5. The provisions of paragraphs (b) and (c) of subsection 1 do not apply if the motor vehicle in question displays a permit issued by the department pursuant to subsection 1 or 2 of NRS 482.3955, or NRS 482.396, 482.3965, 482.423 or 482.424 authorizing the movement or operation of that vehicle within this state for a limited time.

Sec. 8. NRS 485.190 is hereby amended to read as follows:

485.190 1. If 20 days after the receipt of a report of an accident involving a motor vehicle within this state which has resulted in bodily injury or death, or damage to the property of any one person in excess of $750, the division does not have on file evidence satisfactory to [it] the division that the person who would otherwise be required to file security under subsection 2 of this section has been released from liability, has been finally adjudicated not to be liable or has executed an acknowledged written agreement providing for the payment of an agreed amount in installments with respect to all claims for injuries or damages resulting from the accident, the division shall upon request set the matter for a hearing as provided in NRS 485.191.

2. The division shall, at any time after a determination adverse to an operator or owner pursuant to NRS 485.191, suspend the license of each operator and all registrations of each owner of a motor vehicle involved in such an accident, and, if the operator is a nonresident, the privilege of operating a motor vehicle within this state, and, if the owner is a nonresident, the privilege of the use within this state of any motor vehicle owned by him, unless the operator or owner, or both, deposit security in the sum so determined by the division. Notice of such a suspension must be sent by the division to the operator and owner not less than 10 days before the effective date of the suspension and must state the amount required as security. [Where] If erroneous information is given to the division with respect to the matters set forth in [paragraph (a), (b) or (c) of] subsection 1 , 2 or 3 of NRS 485.200, the division shall take appropriate action as provided in this section after it receives correct information with respect to those matters.

Sec. 9. NRS 485.200 is hereby amended to read as follows:

485.200 [1.] The requirements [as] relating to security and suspension in NRS 485.190 to 485.300, inclusive, do not apply:

[(a)] 1. To the operator or owner if he had in effect at the time of the accident a motor vehicle liability policy with respect to the motor vehicle involved in the accident;

[(b)] 2. To the operator if there was in effect at the time of the accident a motor vehicle liability policy with respect to his operation of any motor vehicle;

[(c)] 3. To the operator or owner if his liability for damages resulting from the accident is, in the judgment of the division, covered by any other form of liability insurance policy or a bond;

[(d)] 4. To any person qualifying as a self-insurer pursuant to NRS 485.380, or to any person operating a motor vehicle for the self-insured;

[(e)] 5. To the operator or the owner of a motor vehicle involved in an accident wherein no injury or damage was caused to the person or property of [anyone] another person other than the operator or owner;

[(f)] 6. To the operator or the owner of a motor vehicle legally parked at the time of the accident;

[(g)] 7. To the owner of a motor vehicle if at the time of the accident the vehicle was being operated without his permission, express or implied, or was parked by a person who had been operating the motor vehicle without permission; or

[(h)] 8. If, before the date that the division would otherwise suspend the license and registration or nonresident’s operating privilege pursuant to NRS 485.190, there is filed with the division evidence satisfactory to [it] the division that the person who would otherwise have to file security has been released from liability or has received a determination in his favor at a hearing conducted pursuant to NRS 485.191, or has been finally adjudicated not to be liable or has executed an acknowledged written agreement providing for the payment of an agreed amount in installments, with respect to all claims for injuries or damages resulting from the accident.

[2. An owner who is not the operator of the motor vehicle is not exempt from the requirements as to security and suspension in NRS 485.190 to 485.300, inclusive, if he holds a motor vehicle liability policy which provides coverage only when he is operating the motor vehicle and, at the time of the accident, another person is operating the motor vehicle with the express or implied permission of the owner.]

Sec. 10. NRS 485.280 is hereby amended to read as follows:

485.280 A deposit or any balance thereof must be returned to the depositor or his personal representative:

1. [When] If evidence satisfactory to the division has been filed with [it] the division that there has been a release from liability, a final adjudication of nonliability or an acknowledged agreement, in accordance with [paragraph (h) of subsection 1] the provisions of subsection 8 of NRS 485.200; or

2. If 2 years after the date of the accident or 1 year [from] after the date of deposit of any security under NRS 485.230, whichever period is longer, the division is given reasonable evidence that there is no action pending and no judgment rendered in such an action left unpaid.

Sec. 11. 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] an owner’s policy of liability insurance which may be used to [meet] comply with the requirements of NRS 485.185 shall provide the department with a record of each such policy issued, amended or terminated in the previous month on the date the record is provided. The record must include:

(a) The name or 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. 12. 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 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, 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 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 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] The provisions of this subsection do 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 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 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 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 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 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 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; 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.

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 6 of NRS 482.480.

7. 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. For the purposes of verification of insurance by the department pursuant to 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. 13. NRS 690B.023 is hereby amended to read as follows:

690B.023 If insurance for the operation of a motor vehicle required pursuant to NRS 485.185 is provided by [a contract] an owner’s policy of liability insurance, the insurer shall:

1. Provide evidence of insurance to the insured on a form approved by the commissioner. The evidence of insurance must include:

(a) The name and address of the policyholder;

(b) The name and address of the insurer;

(c) The year, make and complete identification number of the insured vehicle or vehicles;

(d) The term of the insurance, including the day, month and year on which the policy:

(1) Becomes effective; and

(2) Expires;

(e) The number of the policy;

(f) A statement that the coverage [meets] complies with the requirements set forth in NRS 485.185; and

(g) The statement "This card must be carried in the insured motor vehicle for production upon demand." The statement must be prominently displayed.

2. Provide new evidence of insurance if:

(a) The information regarding the insured vehicle or vehicles required pursuant to paragraph (c) of subsection 1 no longer is accurate;

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

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

(d) The insured notifies the insurer that the original evidence of insurance has been lost.

Sec. 14. Each insurer who has issued operators’ policies of liability insurance pursuant to NRS 485.186 and 485.3091 for the purpose of complying with the requirements of NRS 485.185 which are in effect on July 1, 1999:

1. Shall not renew an operator’s policy of liability insurance issued for that purpose; and

2. Shall provide, not later than October 1, 1999, a written notice to each holder of an operator’s policy of liability insurance issued by the insurer which states that, after December 31, 1999, the policy will not satisfy the requirements set forth in NRS 485.185 for insurance for the payment of liability arising from the maintenance or use of a motor vehicle that is registered or required to be registered in this state.

Sec. 15. The amendatory provisions of section 6 of this act do not apply to offenses that were committed before October 1, 1999.

Sec. 16. 1. This section and section 14 of this act become effective on July 1, 1999.

2. Section 6 of this act becomes effective on October 1, 1999.

3. Sections 1 to 5, inclusive, 7 to 13, inclusive, and 15 of this act become effective on January 1, 2000.".

Amend the title of the bill, first line, after "vehicles;" by inserting:

"providing that an operator’s policy of liability insurance does not satisfy the requirements for liability insurance for a motor vehicle that is registered or required to be registered in this state;".

Amend the summary of the bill by deleting the first line and inserting:

"SUMMARY—Revises provisions regarding requirements for liability insurance for motor vehicle that is registered or required to be registered in Nevada.".