Senate Bill No. 303–Committee on Commerce and Labor

 

March 9, 2001

____________

 

Referred to Committee on Transportation

 

SUMMARY—Makes various changes relating to insurance for motor vehicles. (BDR 43‑109)

 

FISCAL NOTE:            Effect on Local Government: No.

                                     Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to insurance for motor vehicles; specifying that for motor vehicles manufactured after 1981, only the last eight digits of the vehicle identification number may be used to verify that the motor vehicle is insured; prohibiting an operator’s policy of liability insurance from being used to satisfy statutory insurance requirements under certain circumstances; 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:

 

1-1    Section 1. NRS 482.480 is hereby amended to read as follows:

1-2    482.480  There must be paid to the department for the registration or

1-3  the transfer or reinstatement of the registration of motor vehicles, trailers

1-4  and semitrailers, fees according to the following schedule:

1-5    1.  Except as otherwise provided in this section, for each stock

1-6  passenger car and each reconstructed or specially constructed passenger car

1-7  registered to a person, regardless of weight or number of passenger

1-8  capacity, a fee for registration of $33.

1-9    2.  Except as otherwise provided in subsection 3:

1-10    (a) For each of the fifth and sixth such cars registered to a person, a fee

1-11  for registration of $16.50.

1-12    (b) For each of the seventh and eighth such cars registered to a person, a

1-13  fee for registration of $12.

1-14    (c) For each of the ninth or more such cars registered to a person, a fee

1-15  for registration of $8.

1-16    3.  The fees specified in subsection 2 do not apply:

1-17    (a) Unless the person registering the cars presents to the department at

1-18  the time of registration the registrations of all of the cars registered to him.

1-19    (b) To cars that are part of a fleet.

2-1    4.  For every motorcycle, a fee for registration of $33 and for each

2-2  motorcycle other than a trimobile, an additional fee of $6 for motorcycle

2-3  safety. The additional fee must be deposited in the state highway fund for

2-4  credit to the account for the program for the education of motorcycle

2-5  riders.

2-6    5.  For each transfer of registration, a fee of $6 in addition to any other

2-7  fees.

2-8    6.  To reinstate the registration of a motor vehicle suspended pursuant

2-9  to NRS 485.317:

2-10    (a) A fee of $250 for a registered owner who failed to have insurance on

2-11  the date specified in the form for verification that was mailed by the

2-12  department pursuant to subsection [2] 3 of NRS 485.317; or

2-13    (b) A fee of $50 for a registered owner of a dormant vehicle who

2-14  canceled the insurance coverage for that vehicle or allowed the insurance

2-15  coverage for that vehicle to expire without first canceling the registration

2-16  for the vehicle in accordance with subsection 3 of
NRS 485.320,

2-17  both of which must be deposited in the account for verification of

2-18  insurance which is hereby created in the state highway fund. Money in the

2-19  account must be used to carry out the provisions of NRS 485.313 to

2-20  485.318, inclusive.

2-21    7.  For every travel trailer, a fee for registration of $27.

2-22    8.  For every permit for the operation of a golf cart, an annual fee of

2-23  $10.

2-24    9.  For every low-speed vehicle, as that term is defined in
NRS 484.527, a fee for registration of $33.

2-25    10.  To reinstate the registration of a motor vehicle that is suspended

2-26  pursuant to NRS 482.451, a fee of $33.

2-27    Sec. 2.  NRS 485.185 is hereby amended to read as follows:

2-28    485.185  1.  Every owner of a motor vehicle [which] that is registered

2-29  or required to be registered in this state shall continuously provide, while

2-30  the motor vehicle is present or registered in this state, insurance as

2-31  required by subsection 2.

2-32    2.  Every motor vehicle that is registered or required to be registered

2-33  in this state must continuously be covered, while the motor vehicle is

2-34  present or registered in this state, by insurance:

2-35    [1.] (a) In the amount of $15,000 for bodily injury to or death of one

2-36  person in any one accident;

2-37    [2.] (b) Subject to the limit for one person, in the amount of $30,000 for

2-38  bodily injury to or death of two or more persons in any one accident; and

2-39    [3.] (c) In the amount of $10,000 for injury to or destruction of property

2-40  of others in any one accident,

2-41  for the payment of tort liabilities arising from the maintenance or use of the

2-42  motor vehicle.

2-43    Sec. 3.  NRS 485.186 is hereby amended to read as follows:

2-44    485.186  1.  Except as otherwise provided in [subsection 6,]

2-45  subsections 6 and 7, any natural person may satisfy the requirements of

2-46  NRS 485.185 by obtaining, in lieu of an owner’s policy of liability

3-1  insurance, an operator’s policy of liability insurance [which] that meets the

3-2  requirements of this section and NRS 485.3091.

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

3-4  the requirements of NRS 485.3091, that:

3-5    (a) The insurer is only liable under the policy for liability incurred by

3-6  the insured while the named insured is the operator of a motor vehicle or

3-7  while a motor vehicle owned by the insured is not being operated by any

3-8  person;

3-9    (b) The policy does not provide coverage for any vicarious liability

3-10  imposed on the owner of the motor vehicle as a result of the operation by

3-11  another person of a motor vehicle owned by the insured or for any liability

3-12  imposed by NRS 41.440 or 483.300; and

3-13    (c) The coverage provided by the policy may not meet the requirements

3-14  of the financial responsibility laws of other states,

3-15  unless such extended coverage is expressly included in the policy. No

3-16  operator’s policy of liability insurance may be delivered or issued for

3-17  delivery in this state unless the insured has signed an endorsement stating

3-18  that he has read and understood the policy and its limitations.

3-19    3.  An owner of a motor vehicle which is registered or required to be

3-20  registered in this state and who holds an operator’s policy of liability

3-21  insurance shall not permit another person to operate his motor vehicle if the

3-22  owner knows or should have known that the person does not have liability

3-23  insurance to cover his own operation of that motor vehicle.

3-24    4.  An operator’s policy of liability insurance must not provide

3-25  coverage for damages incurred while a person other than the named

3-26  insured is operating a motor vehicle.

3-27    5.  An operator’s policy of liability insurance must provide coverage

3-28  for liability incurred by the insured while a motor vehicle owned by the

3-29  insured is not being operated by any person.

3-30    6.  This section does not apply to a lessor, dealer, manufacturer,

3-31  rebuilder or distributor of a motor vehicle, an owner of a fleet, a common,

3-32  contract or private motor carrier , or any other employer who owns a motor

3-33  vehicle for use in his business.

3-34    7.  A natural person may not satisfy the requirements of NRS 485.185

3-35  by obtaining an operator’s policy of liability insurance in lieu of an

3-36  owner’s policy of liability insurance unless each registered owner of the

3-37  motor vehicle has obtained a policy of liability insurance for use of the

3-38  motor vehicle that meets the requirements of this chapter.

3-39    Sec. 4.  NRS 485.313 is hereby amended to read as follows:

3-40    485.313  1.  [The] Pursuant to the limitations set forth in
NRS 485.317, the department shall create a system for verifying that [the

3-41  owners of motor vehicles maintain the insurance] each motor vehicle

3-42  registered in this state is covered by a policy of liability insurance as

3-43  required by subsection 2 of NRS 485.185.

3-44    2.  As used in this section, “motor vehicle” does not include:

3-45    (a) A golf cart, as that term is defined in NRS 482.044.

3-46    (b) A motortruck, truck tractor, bus or other vehicle that is registered

3-47  pursuant to paragraph (e) of subsection 1 of NRS 482.482 or NRS 706.801

3-48  to 706.861, inclusive.

4-1    Sec. 5.  NRS 485.316 is hereby amended to read as follows:

4-2    485.316  1.  Except as otherwise provided in subsections 2 and 3,

4-3  information which is maintained in the database created pursuant to
NRS 485.313 is confidential.

4-4    2.  The department may only disclose information which is maintained

4-5  in the database, upon request, to a state or local governmental agency for

4-6  the purpose of enforcing NRS 485.185, including investigating or litigating

4-7  a violation or alleged violation.

4-8    3.  The department may only disclose information retrieved from the

4-9  database to:

4-10    (a) A person who requests information regarding his own status;

4-11    (b) The parent or legal guardian of the person about whom the

4-12  information is requested if the person is an unemancipated minor or legally

4-13  incapacitated;

4-14    (c) A person who has a power of attorney from the person about whom

4-15  the information is requested;

4-16    (d) A person who submits a notarized release from the person about

4-17  whom the information is requested which is dated no more than 90 days

4-18  before the date of the request; or

4-19    (e) A person who has suffered a loss or injury in an accident involving a

4-20  motor vehicle , or his authorized insurer or a representative of his

4-21  authorized insurer, who requests [information] :

4-22      (1) Information for use in the accident report[.] ; and

4-23      (2) For each motor vehicle involved in the accident:

4-24        (I) The name and address of each registered owner;

4-25        (II) The name of the insurer; and

4-26        (III) The number of the policy of liability insurance.

4-27    4.  A person who knowingly violates the provisions of this section is

4-28  guilty of a category D felony and shall be punished as provided in
NRS 193.130.

4-29    5.  As used in this section, “authorized insurer” has the meaning

4-30  ascribed to it in NRS 679A.030.

4-31    Sec. 6.  NRS 485.317 is hereby amended to read as follows:

4-32    485.317  1.  [The] Subject to the limitations set forth in this

4-33  subsection and subsection 2, the department shall, at least monthly,

4-34  compare the current registrations of motor vehicles to the information in

4-35  the database created pursuant to NRS 485.313 to verify that each motor

4-36  vehicle:

4-37    (a) Which is newly registered in this state; or

4-38    (b) For which a policy of liability insurance has been issued, amended

4-39  or terminated,

4-40  is covered by a policy of liability insurance as required by subsection 2 of

4-41  NRS 485.185. In identifying a motor vehicle for verification pursuant to

4-42  this subsection, the department shall, if the motor vehicle was

4-43  manufactured during or after 1981, use only the last eight digits of the

4-44  vehicle identification number . [, in whole or in part.] In comparing the

4-45  vehicle identification number of a motor vehicle to the vehicle

4-46  identification number in a policy of liability insurance, to determine if

4-47  the two vehicle identification numbers match, the department may find

5-1  that the two vehicle identification numbers match if no fewer than seven

5-2  of the last eight digits of the two vehicle identification numbers match.

5-3    2.  The department shall not use the name of the owner of a motor

5-4  vehicle to verify, pursuant to subsection 1, whether the motor vehicle is

5-5  covered by a policy of liability insurance as required by subsection 2 of

5-6  NRS 485.185.

5-7    3.  If, pursuant to subsection 1, the department determines that a

5-8  motor vehicle is not covered by a policy of liability insurance as required

5-9  by subsection 2 of NRS 485.185, the department shall send a form for

5-10  verification by first-class mail to each registered owner [that it determines

5-11  has not maintained the insurance required by NRS 485.185.] of the motor

5-12  vehicle. The owner shall complete the form with all the information which

5-13  is requested by the department, including whether he carries an owner’s or

5-14  operator’s policy of liability insurance or a certificate of self-insurance, and

5-15  return the completed form within 20 days after the date on which the form

5-16  was mailed by the department. If the department does not receive the

5-17  completed form within 20 days after it mailed the form to the owner, the

5-18  department shall send to the owner a second form for verification by

5-19  certified mail. The owner shall complete the form and return it to the

5-20  department within 15 days after the date on which it was sent by the

5-21  department. This subsection does not prohibit an authorized agent of the

5-22  owner from providing to the department:

5-23    (a) The information requested by the department pursuant to this

5-24  subsection.

5-25    (b) Additional information to amend or correct information already

5-26  submitted to the department pursuant to this subsection.

5-27    [3.] 4.  When the department receives a completed form for verification

5-28  , it shall verify the information on the form.

5-29    [4.] 5.  The department shall suspend the registration and require the

5-30  return to the department of the license plates of any vehicle for which:

5-31    (a) Neither of the forms for verification set forth in subsection [2] 3 is

5-32  returned to the department by the registered owner or his authorized agent

5-33  within the period specified in that subsection;

5-34    (b) Either of the forms for verification set forth in subsection [2] 3 is

5-35  returned to the department by the registered owner or his authorized agent

5-36  and the department is not able to verify the information on the form; or

5-37    (c) Either of the forms for verification set forth in subsection [2] 3 is

5-38  returned by the registered owner or his authorized agent with an admission

5-39  of having no insurance or without indicating an insurer or the number of a

5-40  motor vehicle liability policy or a certificate of self-insurance.

5-41    [5.] 6.  If the department suspends a registration pursuant to subsection

5-42  [4] 5 because:

5-43    (a) Neither the owner nor his authorized agent returned a form for

5-44  verification within the specified period or the owner or his authorized agent

5-45  returned a form for verification that was not completed sufficiently, and the

5-46  owner or his authorized agent, thereafter:

5-47      (1) Proves to the satisfaction of the department that there was a

5-48  justifiable cause for his failure to do so;

6-1       (2) Submits a completed form regarding his insurance on the date

6-2  stated in the form mailed by the department pursuant to subsection [2;] 3;

6-3  and

6-4       (3) Presents evidence of current insurance; or

6-5    (b) The owner or his authorized agent submitted to the department a

6-6  form for verification containing information that the department was

6-7  unable to verify and, thereafter, the owner or his authorized agent presents

6-8  to the department:

6-9       (1) A corrected form or otherwise verifiable evidence setting forth

6-10  that the owner possessed insurance on the date stated in the form; and

6-11      (2) Evidence of current insurance,

6-12  the department shall rescind its suspension of the registration if it is able to

6-13  verify the information on the form or the other evidence presented. The

6-14  department shall not charge a fee to reinstate a registration, the suspension

6-15  of which was rescinded pursuant to this subsection. For the purposes of this

6-16  subsection, “justifiable cause” may include, but is not limited to, the fact

6-17  that the owner did not receive the form mailed by the department pursuant

6-18  to subsection [2.] 3.

6-19    [6.] 7.  Except as otherwise provided in subsection [7,] 8, if a registered

6-20  owner whose registration is suspended pursuant to subsection [4,] 5, failed

6-21  to have insurance on the date specified in the form for verification, the

6-22  department shall reinstate the registration of the vehicle and reissue the

6-23  license plates only upon filing by the registered owner of evidence of

6-24  current insurance and payment of the fee for reinstatement of registration

6-25  prescribed in paragraph (a) of subsection 6 of NRS 482.480.

6-26    [7.] 8.  If a registered owner proves to the satisfaction of the department

6-27  that his vehicle was a dormant vehicle during the period in which the

6-28  information provided pursuant to NRS 485.314 indicated that there was no

6-29  insurance for the vehicle, the department shall reinstate his registration and,

6-30  if applicable, reissue his license plates. If such an owner of a dormant

6-31  vehicle failed to cancel the registration for the vehicle in accordance with

6-32  subsection 3 of NRS 485.320, the department shall not reinstate his

6-33  registration or reissue his license plates unless the owner pays the fee set

6-34  forth in paragraph (b) of subsection 6 of NRS 482.480.

6-35    [8.] 9.  For the purposes of verification of insurance by the department

6-36  pursuant to this section, a [registered owner shall not] motor vehicle shall

6-37  be deemed to [have failed to maintain] be covered by liability insurance

6-38  [for a motor vehicle] unless the motor vehicle is without coverage for a

6-39  period of more than 7 days.

6-40    Sec. 7.  This act becomes effective on July 1, 2001.

 

6-41  H