(REPRINTED WITH ADOPTED AMENDMENTS)

                                                                                    FIRST REPRINT                                       S.B. 303

 

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.

 

~

 

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 insurance for motor vehicles; specifying that any information may be used to verify that a 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

2-17  NRS 485.320,

2-18  both of which must be deposited in the account for verification of

2-19  insurance which is hereby created in the state highway fund. Money in the

2-20  account must be used to carry out the provisions of NRS 485.313 to

2-21  485.318, inclusive.

2-22    7.  For every travel trailer, a fee for registration of $27.

2-23    8.  For every permit for the operation of a golf cart, an annual fee of

2-24  $10.

2-25    9.  For every low-speed vehicle, as that term is defined in

2-26  NRS 484.527, a fee for registration of $33.

2-27    10.  To reinstate the registration of a motor vehicle that is suspended

2-28  pursuant to NRS 482.451, a fee of $33.

2-29    Sec. 2.  NRS 485.185 is hereby amended to read as follows:

2-30    485.185  1.  Every owner of a motor vehicle [which] that is registered

2-31  or required to be registered in this state shall continuously provide, while

2-32  the motor vehicle is present or registered in this state, insurance as

2-33  required by subsection 2.

2-34    2.  Every motor vehicle that is registered or required to be registered

2-35  in this state must continuously be covered, while the motor vehicle is

2-36  present or registered in this state, by insurance:

2-37    [1.] (a) In the amount of $15,000 for bodily injury to or death of one

2-38  person in any one accident;

2-39    [2.] (b) Subject to the limit for one person, in the amount of $30,000 for

2-40  bodily injury to or death of two or more persons in any one accident; and

2-41    [3.] (c) In the amount of $10,000 for injury to or destruction of property

2-42  of others in any one accident,

2-43  for the payment of tort liabilities arising from the maintenance or use of the

2-44  motor vehicle.

2-45    Sec. 3.  NRS 485.186 is hereby amended to read as follows:

2-46    485.186  1.  Except as otherwise provided in [subsection 6,]

2-47  subsections 6 and 7, any natural person who is the owner of three or more

2-48  motor vehicles which are or are required to be registered in this state may

2-49  satisfy the requirements of NRS 485.185 by obtaining, in lieu of an


3-1  owner’s policy of liability insurance, an operator’s policy of liability

3-2  insurance [which] that meets the requirements of this section and NRS

3-3  485.3091.

3-4    2.  An operator’s policy of liability insurance must state, in addition to

3-5  the requirements of NRS 485.3091, that:

3-6    (a) The insurer is only liable under the policy for liability incurred by

3-7  the insured while the named insured is the operator of a motor vehicle or

3-8  while a motor vehicle owned by the insured is not being operated by any

3-9  person;

3-10    (b) The policy does not provide coverage for any vicarious liability

3-11  imposed on the owner of the motor vehicle as a result of the operation by

3-12  another person of a motor vehicle owned by the insured or for any liability

3-13  imposed by NRS 41.440 or 483.300; and

3-14    (c) The coverage provided by the policy may not meet the requirements

3-15  of the financial responsibility laws of other states,

3-16  unless such extended coverage is expressly included in the policy. No

3-17  operator’s policy of liability insurance may be delivered or issued for

3-18  delivery in this state unless the insured has signed an endorsement stating

3-19  that he has read and understood the policy and its limitations.

3-20    3.  An owner of a motor vehicle which is registered or required to be

3-21  registered in this state and who holds an operator’s policy of liability

3-22  insurance shall not permit another person to operate his motor vehicle if the

3-23  owner knows or should have known that the person does not have liability

3-24  insurance to cover his own operation of that motor vehicle.

3-25    4.  An operator’s policy of liability insurance must not provide

3-26  coverage for damages incurred while a person other than the named

3-27  insured is operating a motor vehicle.

3-28    5.  An operator’s policy of liability insurance must provide coverage

3-29  for liability incurred by the insured while a motor vehicle owned by the

3-30  insured is not being operated by any person.

3-31    6.  This section does not apply to a lessor, dealer, manufacturer,

3-32  rebuilder or distributor of a motor vehicle, an owner of a fleet, a common,

3-33  contract or private motor carrier , or any other employer who owns a motor

3-34  vehicle for use in his business.

3-35    7.  A natural person may not satisfy the requirements of NRS 485.185

3-36  by obtaining an operator’s policy of liability insurance in lieu of an

3-37  owner’s policy of liability insurance unless each registered owner of the

3-38  motor vehicle has obtained a policy of liability insurance for use of the

3-39  motor vehicle that meets the requirements of this chapter.

3-40    Sec. 4.  NRS 485.313 is hereby amended to read as follows:

3-41    485.313  1.  [The] Pursuant to the limitations set forth in

3-42  NRS 485.317, the department shall create a system for verifying that [the

3-43  owners of motor vehicles maintain the insurance] each motor vehicle

3-44  registered in this state is covered by a policy of liability insurance as

3-45  required by subsection 2 of NRS 485.185.

3-46    2.  As used in this section, “motor vehicle” does not include:

3-47    (a) A golf cart, as that term is defined in NRS 482.044.


4-1    (b) A motortruck, truck tractor, bus or other vehicle that is registered

4-2  pursuant to paragraph (e) of subsection 1 of NRS 482.482 or NRS 706.801

4-3  to 706.861, inclusive.

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

4-5    485.316  1.  Except as otherwise provided in subsections 2 and 3,

4-6  information which is maintained in the database created pursuant to

4-7  NRS 485.313 is confidential.

4-8    2.  The department may only disclose information which is maintained

4-9  in the database, upon request, to a state or local governmental agency for

4-10  the purpose of enforcing NRS 485.185, including investigating or litigating

4-11  a violation or alleged violation.

4-12    3.  The department may only disclose information retrieved from the

4-13  database to:

4-14    (a) A person who requests information regarding his own status;

4-15    (b) The parent or legal guardian of the person about whom the

4-16  information is requested if the person is an unemancipated minor or legally

4-17  incapacitated;

4-18    (c) A person who has a power of attorney from the person about whom

4-19  the information is requested;

4-20    (d) A person who submits a notarized release from the person about

4-21  whom the information is requested which is dated no more than 90 days

4-22  before the date of the request; or

4-23    (e) A person who has suffered a loss or injury in an accident involving a

4-24  motor vehicle , or his authorized insurer or a representative of his

4-25  authorized insurer, who requests [information] :

4-26      (1) Information for use in the accident report[.] ; and

4-27      (2) For each motor vehicle involved in the accident:

4-28        (I) The name and address of each registered owner;

4-29        (II) The name of the insurer; and

4-30        (III) The number of the policy of liability insurance.

4-31    4.  A person who knowingly violates the provisions of this section is

4-32  guilty of a category D felony and shall be punished as provided in

4-33  NRS 193.130.

4-34    5.  As used in this section, “authorized insurer” has the meaning

4-35  ascribed to it in NRS 679A.030.

4-36    Sec. 6.  NRS 485.317 is hereby amended to read as follows:

4-37    485.317  1.  [The] Subject to the limitations set forth in this

4-38  subsection and subsection 2, the department shall, at least monthly,

4-39  compare the current registrations of motor vehicles to the information in

4-40  the database created pursuant to NRS 485.313 to verify that each motor

4-41  vehicle:

4-42    (a) Which is newly registered in this state; or

4-43    (b) For which a policy of liability insurance has been issued, amended

4-44  or terminated,

4-45  is covered by a policy of liability insurance as required by subsection 2 of

4-46  NRS 485.185. In identifying a motor vehicle for verification pursuant to

4-47  this subsection, the department [shall,] may, if the motor vehicle was

4-48  manufactured during or after 1981, use only the last eight digits of the

4-49  vehicle identification number . [, in whole or in part.] In comparing the


5-1  vehicle identification number of a motor vehicle to the vehicle

5-2  identification number in a policy of liability insurance, to determine if

5-3  the two vehicle identification numbers match, the department may find

5-4  that the two vehicle identification numbers match if no fewer than seven

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

5-6    2.  The department may use any information, including, without

5-7  limitation, the name of the owner of a motor vehicle, to verify, pursuant

5-8  to subsection 1, whether the motor vehicle is covered by a policy of

5-9  liability insurance as required by subsection 2 of NRS 485.185.

5-10    3.  If, pursuant to subsection 1, the department determines that a

5-11  motor vehicle is not covered by a policy of liability insurance as required

5-12  by subsection 2 of NRS 485.185, the department shall send a form for

5-13  verification by first-class mail to each registered owner [that it determines

5-14  has not maintained the insurance required by NRS 485.185.] of the motor

5-15  vehicle. The owner shall complete the form with all the information which

5-16  is requested by the department, including whether he carries an owner’s or

5-17  operator’s policy of liability insurance or a certificate of self-insurance, and

5-18  return the completed form within 20 days after the date on which the form

5-19  was mailed by the department. If the department does not receive the

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

5-21  department shall send to the owner a second form for verification by

5-22  certified mail. The owner shall complete the form and return it to the

5-23  department within 15 days after the date on which it was sent by the

5-24  department. This subsection does not prohibit an authorized agent of the

5-25  owner from providing to the department:

5-26    (a) The information requested by the department pursuant to this

5-27  subsection.

5-28    (b) Additional information to amend or correct information already

5-29  submitted to the department pursuant to this subsection.

5-30    [3.] 4.  When the department receives a completed form for

5-31  verification , it shall verify the information on the form.

5-32    [4.] 5.  The department shall suspend the registration and require the

5-33  return to the department of the license plates of any vehicle for which:

5-34    (a) Neither 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  within the period specified in that subsection;

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

5-38  returned to the department by the registered owner or his authorized agent

5-39  and the department is not able to verify the information on the form; or

5-40    (c) Either of the forms for verification set forth in subsection [2] 3 is

5-41  returned by the registered owner or his authorized agent with an admission

5-42  of having no insurance or without indicating an insurer or the number of a

5-43  motor vehicle liability policy or a certificate of self-insurance.

5-44    [5.] 6.  If the department suspends a registration pursuant to subsection

5-45  [4] 5 because:

5-46    (a) Neither the owner nor his authorized agent returned a form for

5-47  verification within the specified period or the owner or his authorized agent

5-48  returned a form for verification that was not completed sufficiently, and the

5-49  owner or his authorized agent, thereafter:


6-1       (1) Proves to the satisfaction of the department that there was a

6-2  justifiable cause for his failure to do so;

6-3       (2) Submits a completed form regarding his insurance on the date

6-4  stated in the form mailed by the department pursuant to subsection [2;] 3;

6-5  and

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

6-7    (b) The owner or his authorized agent submitted to the department a

6-8  form for verification containing information that the department was

6-9  unable to verify and, thereafter, the owner or his authorized agent presents

6-10  to the department:

6-11      (1) A corrected form or otherwise verifiable evidence setting forth

6-12  that the owner possessed insurance on the date stated in the form; and

6-13      (2) Evidence of current insurance,

6-14  the department shall rescind its suspension of the registration if it is able to

6-15  verify the information on the form or the other evidence presented. The

6-16  department shall not charge a fee to reinstate a registration, the suspension

6-17  of which was rescinded pursuant to this subsection. For the purposes of this

6-18  subsection, “justifiable cause” may include, but is not limited to, the fact

6-19  that the owner did not receive the form mailed by the department pursuant

6-20  to subsection [2.] 3.

6-21    [6.] 7.  Except as otherwise provided in subsection [7,] 8, if a registered

6-22  owner whose registration is suspended pursuant to subsection [4,] 5, failed

6-23  to have insurance on the date specified in the form for verification, the

6-24  department shall reinstate the registration of the vehicle and reissue the

6-25  license plates only upon filing by the registered owner of evidence of

6-26  current insurance and payment of the fee for reinstatement of registration

6-27  prescribed in paragraph (a) of subsection 6 of NRS 482.480.

6-28    [7.] 8.  If a registered owner proves to the satisfaction of the department

6-29  that his vehicle was a dormant vehicle during the period in which the

6-30  information provided pursuant to NRS 485.314 indicated that there was no

6-31  insurance for the vehicle, the department shall reinstate his registration and,

6-32  if applicable, reissue his license plates. If such an owner of a dormant

6-33  vehicle failed to cancel the registration for the vehicle in accordance with

6-34  subsection 3 of NRS 485.320, the department shall not reinstate his

6-35  registration or reissue his license plates unless the owner pays the fee set

6-36  forth in paragraph (b) of subsection 6 of NRS 482.480.

6-37    [8.] 9.  For the purposes of verification of insurance by the department

6-38  pursuant to this section, a [registered owner shall not] motor vehicle shall

6-39  be deemed to [have failed to maintain] be covered by liability insurance

6-40  [for a motor vehicle] unless the motor vehicle is without coverage for a

6-41  period of more than 7 days.

6-42    Sec. 7.  This act becomes effective on July 1, 2001.

 

6-43  H