(REPRINTED WITH ADOPTED AMENDMENTS)

                          THIRD 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 except the name of the owner of a motor vehicle may be used to verify that a motor vehicle is insured; providing that an operator’s policy of liability insurance may only be issued to certain persons; allowing the release of information related to insurance policies under certain circumstances; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

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

2-9  to reinstate the registration of a motor vehicle suspended pursuant to that

2-10  section:

2-11    (a) A fee of $250 for a registered owner who failed to have insurance on

2-12  the date specified in the form for verification that was mailed by the

2-13  department pursuant to subsection [2] 3 of NRS 485.317; or

2-14    (b) A fee of $50 for a registered owner of a dormant vehicle who

2-15  canceled the insurance coverage for that vehicle or allowed the insurance

2-16  coverage for that vehicle to expire without first canceling the registration

2-17  for the vehicle in accordance with subsection 3 of

2-18  NRS 485.320,

2-19  both of which must be deposited in the account for verification of

2-20  insurance which is hereby created in the state highway fund. The money in

2-21  the account must be used to carry out the provisions of NRS 485.313 to

2-22  485.318, inclusive.

2-23    7.  For every travel trailer, a fee for registration of $27.

2-24    8.  For every permit for the operation of a golf cart, an annual fee of

2-25  $10.

2-26    9.  For every low-speed vehicle, as that term is defined in

2-27  NRS 484.527, a fee for registration of $33.

2-28  10.  To reinstate the registration of a motor vehicle that is suspended

2-29  pursuant to NRS 482.451, a fee of $33.

2-30  Sec. 2.  NRS 485.186 is hereby amended to read as follows:

2-31  485.186  1.  Except as otherwise provided in subsection [6,] 7, any

2-32  natural person may satisfy the requirements of NRS 485.185 by obtaining,

2-33  in lieu of an owner’s policy of liability insurance, an operator’s policy of

2-34  liability insurance which meets the requirements of this section and NRS

2-35  485.3091.

2-36  2. An operator’s policy of liability insurance may only be issued to a

2-37  person if:

2-38  (a) The number of motor vehicles that he owns is greater than the

2-39  number of persons in his household who possess a driver’s license; and

2-40  (b) Each person in his household who possesses a driver’s license is

2-41  covered by an operator’s policy of liability insurance.

2-42  3. An operator’s policy of liability insurance must state, in addition to

2-43  the requirements of NRS 485.3091, that:

2-44  (a) The insurer is only liable under the policy for liability incurred by

2-45  the insured while the named insured is the operator of a motor vehicle or

2-46  while a motor vehicle owned by the insured is not being operated by any

2-47  person;

2-48  (b) The policy does not provide coverage for any vicarious liability

2-49  imposed on the owner of the motor vehicle as a result of the operation by


3-1  another person of a motor vehicle owned by the insured or for any liability

3-2  imposed by NRS 41.440 or 483.300; and

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

3-4  of the financial responsibility laws of other states,

3-5  unless such extended coverage is expressly included in the policy. No

3-6  operator’s policy of liability insurance may be delivered or issued for

3-7  delivery in this state unless the insured has signed an endorsement stating

3-8  that he has read and understood the policy and its limitations.

3-9    [3.] 4.  An owner of a motor vehicle which is registered or required to

3-10  be registered in this state and who holds an operator’s policy of liability

3-11  insurance shall not permit another person to operate his motor vehicle if the

3-12  owner knows or should have known that the person does not have liability

3-13  insurance to cover his own operation of that motor vehicle.

3-14  [4.] 5.  An operator’s policy of liability insurance must not provide

3-15  coverage for damages incurred while a person other than the named

3-16  insured is operating a motor vehicle.

3-17  [5.] 6.  An operator’s policy of liability insurance must provide

3-18  coverage for liability incurred by the insured while a motor vehicle owned

3-19  by the insured is not being operated by any person.

3-20  [6.] 7.  This section does not apply to a lessor, dealer, manufacturer,

3-21  rebuilder or distributor of a motor vehicle, an owner of a fleet, a common,

3-22  contract or private motor carrier or any other employer who owns a motor

3-23  vehicle for use in his business.

3-24    Sec. 3.  NRS 485.316 is hereby amended to read as follows:

3-25    485.316  1.  Except as otherwise provided in subsections 2 and 3,

3-26  information which is maintained in the database created pursuant to

3-27  NRS 485.313 is confidential.

3-28    2.  The department may only disclose information which is maintained

3-29  in the database, upon request, to a state or local governmental agency for

3-30  the purpose of enforcing NRS 485.185, including investigating or litigating

3-31  a violation or alleged violation.

3-32    3.  The department may only disclose information retrieved from the

3-33  database to:

3-34    (a) A person who requests information regarding his own status;

3-35    (b) The parent or legal guardian of the person about whom the

3-36  information is requested if the person is an unemancipated minor or legally

3-37  incapacitated;

3-38    (c) A person who has a power of attorney from the person about whom

3-39  the information is requested;

3-40    (d) A person who submits a notarized release from the person about

3-41  whom the information is requested which is dated no more than 90 days

3-42  before the date of the request; or

3-43    (e) A person who has suffered a loss or injury in an accident involving a

3-44  motor vehicle , or his authorized insurer or a representative of his

3-45  authorized insurer, who requests [information] :

3-46      (1) Information for use in the accident report[.] ; and

3-47      (2) For each motor vehicle involved in the accident:

3-48         (I) The name and address of each registered owner;

3-49         (II) The name of the insurer; and


4-1         (III) The number of the policy of liability insurance.

4-2    4.  A person who knowingly violates the provisions of this section is

4-3  guilty of a category D felony and shall be punished as provided in

4-4  NRS 193.130.

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

4-6  ascribed to it in NRS 679A.030.

4-7    Sec. 4.  NRS 485.317 is hereby amended to read as follows:

4-8    485.317  1.  [The] Subject to the limitations set forth in this

4-9  subsection and subsection 2, the department shall, at least monthly,

4-10  compare the current registrations of motor vehicles to the information in

4-11  the database created pursuant to NRS 485.313 to verify that each motor

4-12  vehicle:

4-13    (a) Which is newly registered in this state; or

4-14    (b) For which a policy of liability insurance has been issued, amended

4-15  or terminated,

4-16  is covered by a policy of liability insurance as required by NRS 485.185. In

4-17  identifying a motor vehicle for verification pursuant to this subsection, the

4-18  department [shall,] may, if the motor vehicle was manufactured during or

4-19  after 1981, use only the last eight digits of the vehicle identification

4-20  number . [, in whole or in part.] In comparing the vehicle identification

4-21  number of a motor vehicle to the vehicle identification number in a

4-22  policy of liability insurance, to determine if the two vehicle identification

4-23  numbers match, the department may find that the two vehicle

4-24  identification numbers match if no fewer than seven of the last eight

4-25  digits of the two vehicle identification numbers match.

4-26  2.  [The] Except as otherwise provided in this subsection, the

4-27  department may use any information to verify, pursuant to subsection 1,

4-28  whether the motor vehicle is covered by a policy of liability insurance as

4-29  required by NRS 485.185. The department may not use the name of the

4-30  owner of a motor vehicle as the primary means of verifying that a motor

4-31  vehicle is covered by a policy of liability insurance.

4-32    3.  If, pursuant to subsection 1, the department determines that a

4-33  motor vehicle is not covered by a policy of liability insurance as required

4-34  by NRS 485.185, the department shall send a form for verification by first-

4-35  class mail to each registered owner that it determines has not maintained

4-36  the insurance reqired by NRS 485.185. The owner shall complete the form

4-37  with all the information which is requested by the department, including

4-38  whether he carries an owner’s or operator’s policy of liability insurance or

4-39  a certificate of self-insurance, and return the completed form within 20

4-40  days after the date on which the form was mailed by the department. If the

4-41  department does not receive the completed form within 20 days after it

4-42  mailed the form to the owner, the department shall send to the owner a

4-43  second form for verification by certified mail. The owner shall complete

4-44  the form and return it to the department within 15 days after the date on

4-45  which it was sent by the department. This subsection does not prohibit an

4-46  authorized agent of the owner from providing to the department:

4-47    (a) The information requested by the department pursuant to this

4-48  subsection.


5-1    (b) Additional information to amend or correct information already

5-2  submitted to the department pursuant to this subsection.

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

5-4  verification , it shall verify the information on the form.

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

5-6  return to the department of the license plates of any vehicle for which:

5-7    (a) Neither of the forms for verification set forth in subsection [2] 3 is

5-8  returned to the department by the registered owner or his authorized agent

5-9  within the period specified in that subsection;

5-10    (b) Either of the forms for verification set forth in subsection [2] 3 is

5-11  returned to the department by the registered owner or his authorized agent

5-12  and the department is not able to verify the information on the form; or

5-13    (c) Either of the forms for verification set forth in subsection [2] 3 is

5-14  returned by the registered owner or his authorized agent with an admission

5-15  of having no insurance or without indicating an insurer or the number of a

5-16  motor vehicle liability policy or a certificate of self-insurance.

5-17    [5.] 6.  If the department suspends a registration pursuant to subsection

5-18  [4] 5 because:

5-19    (a) Neither the owner nor his authorized agent returned a form for

5-20  verification within the specified period or the owner or his authorized agent

5-21  returned a form for verification that was not completed sufficiently, and the

5-22  owner or his authorized agent, thereafter:

5-23      (1) Proves to the satisfaction of the department that there was a

5-24  justifiable cause for his failure to do so;

5-25      (2) Submits a completed form regarding his insurance on the date

5-26  stated in the form mailed by the department pursuant to subsection [2;] 3;

5-27  and

5-28      (3) Presents evidence of current insurance; or

5-29    (b) The owner or his authorized agent submitted to the department a

5-30  form for verification containing information that the department was

5-31  unable to verify and, thereafter, the owner or his authorized agent presents

5-32  to the department:

5-33      (1) A corrected form or otherwise verifiable evidence setting forth

5-34  that the owner possessed insurance on the date stated in the form; and

5-35      (2) Evidence of current insurance,

5-36  the department shall rescind its suspension of the registration if it is able to

5-37  verify the information on the form or the other evidence presented. The

5-38  department shall not charge a fee to reinstate a registration, the suspension

5-39  of which was rescinded pursuant to this subsection. For the purposes of this

5-40  subsection, “justifiable cause” may include, but is not limited to, the fact

5-41  that the owner did not receive the form mailed by the department pursuant

5-42  to subsection [2.] 3.

5-43    [6.] 7.  Except as otherwise provided in [subsection 7,] subsections 8

5-44  and 9, if a registered owner whose registration is suspended pursuant to

5-45  subsection [4,] 5, failed to have insurance on the date specified in the form

5-46  for verification, the department shall reinstate the registration of the vehicle

5-47  and reissue the license plates only upon filing by the registered owner of

5-48  evidence of current insurance and payment of the fee for reinstatement of

5-49  registration prescribed in paragraph (a) of subsection 6 of NRS 482.480.


6-1    [7.] 8.  If a registered owner proves to the satisfaction of the department

6-2  that his vehicle was a dormant vehicle during the period in which the

6-3  information provided pursuant to NRS 485.314 indicated that there was no

6-4  insurance for the vehicle, the department shall reinstate his registration and,

6-5  if applicable, reissue his license plates. If such an owner of a dormant

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

6-7  subsection 3 of NRS 485.320, the department shall not reinstate his

6-8  registration or reissue his license plates unless the owner pays the fee set

6-9  forth in paragraph (b) of subsection 6 of NRS 482.480.

6-10  [8.] 9.  If the department suspends the registration of a motor vehicle

6-11  pursuant to subsection [4] 5 because the registered owner of the motor

6-12  vehicle failed to have insurance on the date specified in the form for

6-13  verification, and if the registered owner, in accordance with regulations

6-14  adopted by the department, proves to the satisfaction of the department that

6-15  he was unable to comply with the provisions of NRS 485.185 on that date

6-16  because of extenuating circumstances, the department may:

6-17  (a) Reinstate the registration of the motor vehicle and reissue the license

6-18  plates upon payment by the registered owner of a fee of $50, which must

6-19  be deposited in the account for verification of insurance created by

6-20  subsection 6 of NRS 482.480; or

6-21  (b) Rescind the suspension of the registration without the payment of a

6-22  fee.

6-23  The department shall adopt regulations to carry out the provisions of this

6-24  subsection.

6-25  [9.] 10. For the purposes of verification of insurance by the department

6-26  pursuant to this section, a [registered owner shall not] motor vehicle shall

6-27  be deemed to [have failed to maintain] be covered by liability insurance

6-28  [for a motor vehicle] unless the motor vehicle is without coverage for a

6-29  period of more than 7 days.

6-30  Sec. 5.  1.  This section and section 3 of this act become effective on

6-31  July 1, 2001.

6-32  2.  Sections 2 and 4 of this act become effective on January 1, 2002.

 

6-33  H