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NAMIC 2006 Survey of New State Insurance Laws Summary and Analysis

Motor Vehicle Insurance

All-Terrain Vehicles

Georgia HB 654 provides additional definitions related to all-terrain vehicles. Iowa HF 2569 limits the operation of all-terrain vehicles on highways. Maine HB 1927 restricts the use of an off-road vehicle on a public way or parking area. Virginia SB 191 requires the owners of all-terrain vehicles or off-road motorcycles to obtain a title for their vehicle.

Auto Body Shops

Rhode Island enacted five auto body shop laws in 2006. HB 7167 requires insurance companies selling auto insurance to conduct auto body labor rate surveys to determine the prevailing labor rates that auto body repair facilities charge for vehicle repairs. HB 7168, which relates to motor vehicle damage appraisers, provides that a boldface notice indicating that a consumer has the right to choose an auto repair facility and insurance agencies may not interfere with that choice. HB 7169 requires auto body repair shops to display a boldface sign notifying consumers that insurance companies cannot interfere with the consumer's choice of a repair shop. HB 7170 requires the licensing advisory board to establish minimum requirements for auto repair technicians. HB 7705 requires insurers and auto body repair shops to provide written notice that a vehicle owner is entitled to original equipment manufacturer parts in any auto repair. Tennessee SB 2663 requires the owner of a motor vehicle to submit a declaration of what damage a transferred vehicle has incurred.

Auto Cancellation

Oklahoma HB 3115 repeals an insurer requirement to send notice of certain cancellations to the Department of Public Safety and replaces that program with enabling legislation for a real-time verification program.

Auto Coverage Issues

California AB 1909 provides that where two or more insurance policies apply to the same loss and one policy affords coverage to a named insured who in the course of his or her business rents or leases motor vehicles without operators, it is presumed that the policy to the named insured shall be excess to the other insurance policy. Colorado HB 1030 requires an insurer to make disclosures to consumers regarding the content of auto insurance policies. Maryland HB 760 provides that specified insurers may cancel, fail to renew, or reduce coverage under a binder or policy of private passenger motor vehicle insurance under specified circumstances. North Carolina SB 881 revises penalties for operating a motor vehicle without a liability insurance policy. Washington HB 1257 requires insurers who write motorcycle or motor-driven cycle insurance to allow the purchaser of such coverage to reject underinsured coverage.

Auto Equipment Issues

California enacted two auto equipment issue bills. AB 2291 prohibits a motor vehicle manufacturer or any of its branches from accessing, modifying or extracting information from a dealer's computer record that would prevent or interfere with the lawful efforts of a dealer to comply with data security and privacy laws. SB 1542 requires an auto manufacturer to provide information to a registered vehicle owner to reproduce keys to his vehicle. Colorado HB 1302 eliminates the existing basic emissions program and expands the clean screen program. Connecticut HB 5182 prohibits the sale or offer of sale of any device intended to replace an air bag in a motor vehicle if the seller knows the device does not meet federal air bag safety standards. Minnesota HF 1838 authorizes local governments to allow low-speed neighborhood electric vehicles on residential roadways.

Three states enacted laws related to windows on motor vehicles. Georgia SB 570 authorizes a certified optometrist to provide an attestation in support of a medical exemption for restrictions to limit light transmission or increasing light reflectance on automobile windows. Mississippi HB 1215 requires tinted windows on motor vehicles be labeled to certify that they apply with provisions of law. Vermont HB 445 provides for an exemption for medical reasons of tinted windows on a motor vehicle.

Commercial Auto

Arizona enacted two commercial auto bills. HB 2345 provides a process for the department of transportation to immediately cancel the hazardous materials endorsement on a driver's commercial driver's license. HB 2691 requires a commercial vehicle to have an exhaust system detectable by a visual inspection. California AB 3011 conforms state laws to the requirements of the Federal Motor Carrier Safety Administration. Georgia HB 1392 specifies the gross vehicle weight of a vehicle that is considered non-commercial class. Massachusetts HB 2113 relates to terminal audits for commercial vehicles to ensure compliance by all interstate and intrastate motor carriers. Michigan HB 6084 modifies commercial driver license requirements to conform to federal law. Nebraska LB 1007 updates numerous motor carrier requirements, including motor vehicle size and load requirements. Wyoming SF 27 requires creation of an accessible common carrier based motor vehicle insurance verification system.

Enforcement Issues

Alabama enacted two motor vehicle enforcement issues. HB 142 concerns motorists approaching a stationary authorized emergency vehicle in specified circumstances. HB 152 requires the disclosure of the motor vehicle's title and by separate written disclosure to a prospective purchaser that the vehicle has been submerged in water. California SB 1849 establishes a bureau of automotive repair within the Department of Consumer Affairs. Iowa HF 540 relates to reports of traffic accidents involving certified law enforcement officers and other emergency responders. Illinois SB 2650 provides that no unauthorized photographic, video or other imaging system may be used to record vehicle speeds unless a law enforcement officer is present and witnesses the event. Kansas SCR 1619 creates a task force to study the design and implementation of an electronic motor vehicle financial security verification system.

New Hampshire enacted two motor vehicle enforcement issues. SB 221 authorizes the Department of Safety to require identification and proof of residence from a driver's license applicant. HB 1738 prohibits the use of surveillance devices unless authorized by statute or court order. Oklahoma HB 3085 requires insurers in Internet sales to include entire VIN numbers and identify insurer and winning bidder on website.

Utah enacted three motor vehicle enforcement issues. HB 169 allows the Drivers License Division to disclosure personal identifying information to insurers for claims investigation, antifraud activities, rating or underwriting for minors or other drivers. SB 88 allows the Driver License Division to disclose portions of a driving record to an insurer for purposes of assessing the driving risk of drivers covered by the insurer. SB 129 exempts a six-month motor vehicle registration from selected twelve-month motor vehicle registration provisions. Virginia SB 8 raises the penalty for anyone holding a motor vehicle registration card that is known to be fictitious or cancelled, revoked, suspended, or altered.

West Virginia enacted two motor vehicle enforcement issues. HB 4004 prohibits the use of a traffic law photo-monitoring device by police officers to detect traffic law violations. HB 4307 extends the weekend driving privileges of antique motor vehicles and motorcycles.

Event Data Recorders

Six event data recorder laws were enacted. They include: Colorado (SB 224), Maine (HB 1325), New Hampshire (HB 599), and three bills in Virginia (HB 816, SB 89 and SB 90).

Financial Responsibility

South Carolina HB 4889 relates to the minimum duration of insurance issued to meet motor vehicle financial responsibility requirements.

Ignition Interlock Devices

Indiana HB 1128 provides that when a court grants probationary driving privileges to certain persons, the order must include the requirement that for six months the person may not operate a motor vehicle unless the vehicle is equipped with an ignition interlock device. New Mexico HB 122 changes the administrative authority for the interlock device fund. Wyoming SF 38 creates a new category of restricted driver's license called ignition interlock restricted license.

Miscellaneous

California enacted two miscellaneous motor vehicle bills. AB 2239 amends the sales and use tax law by requiring the owner of a vehicle to make statements specifying the date of travel to and from the warranty or repair facility. AB 2736 deletes the provision requiring vehicles registered under the International Registration Plan to be assigned a certain registration date. District of Column bill 56 requires the Metropolitan Police Department to prepare an annual report regarding motor vehicle insurance. Florida SB 1620 exempts certain licensed motor vehicle service agreement company affiliates from application of motor vehicle service agreement requirements under certain circumstances. Georgia HB 1291 provides that an auto club performing specified services shall not be subject to any laws respecting insurance companies of any kind, class or character in the state.

Kansas SB 119 requires only certain insurance information to be released by an insurer in conducting antifraud activities. Louisiana HB 158 repeals laws providing for regulation of automobile service clubs by the insurance commissioner. Michigan HB 6175 defines and regulates certain installment sales of motor vehicles. New York AB 7633 requires owners and operators of automobile dismantlers, junkyards and scrap metal processing facilities to hold a permit issued by the Department of Environmental Conservation. Tennessee SB 3226 removes the prohibition on antique motor vehicles being used for general transportation by authorizing such use on Saturdays and Sundays only. Virginia HB 436 provides that any vehicle valuation service may be used as evidence of a vehicle's value and not just the National Automobile Dealers' Association black or yellow book. Wisconsin SB 497 relates to insurance notice requirements for motor vehicle retail installment contracts while SB 623 relates to damages to rental vehicles.

Salvage Title

Alabama SB 373 provides for procedures related to the sale of abandoned motor vehicles. California AB 1122 authorizes an insurer that has paid a total loss settlement and is unable to obtain a certificate of ownership under certain circumstances to request DMW to issue a salvage certificate. District of Columbia bill 206 permits a company that stores an unclaimed vehicle that was in an accident, stolen, or abandoned to obtain a scrap title to allow it to use or sell the vehicles for parts. Iowa HF 2362 provides for reassignment of a salvage certificate of title for a motor vehicle. Indiana SB 339 authorizes the owner of a salvage motor vehicle to retain possession of such vehicle under certain circumstances.

Michigan enacted three salvage title-related bills (HB 5104, HB 5240 and SB 779) provides for the registration, titling, sale, transfer, and regulation of certain vehicles. Mississippi HB 1280 authorizes the Department of Public Safety in performing inspections of motor vehicles for which salvage certificates of title have been issued. New Jersey AB 496 requires certain notices when public agencies take possession of abandoned vehicles. Rhode Island SB 2055 relates to certificates of title and security interests. South Dakota HB 1107 clarifies the definition of a salvage vehicle that an insurer determines a total loss due to damage caused by fire, vandalism, collision, weather, submersion in water or flood.

Self-Insurance

South Carolina HB 3554 relates to a self-insurer of motor vehicles and provides that the owner of a taxi that qualifies as a self-insurer must issue to each operator of the taxi a certificate of insurance which must be maintained in the taxi while it is in operation.

Teen Drivers

Delaware HB 256 relates to a Level 1 learner's permit. Illinois HB 4768 provides that any unemancipated minor's application for a graduated driver's license must be accompanied by the written consent of a parent or guardian. Kentucky HB 90 relates to graduated driver's licenses for teenagers. Missouri SB 1001 modifies the lawful presence requirements for driver's licenses and modifies graduated driver's license law. North Carolina SB 1289 makes the use of a mobile phone unlawful for a person less than 18 years of age who holds a provisional license while driving a motor vehicle on a public street.

New Hampshire enacted two teen driving related bills. HB 1260 requires the department of safety to inform first-time driver's license applicants of the controlled drug laws. HB 1581 requires that drivers' licenses issued to persons under the age of 21 be of a different design than other licenses. Ohio HB 343 places certain restrictions on the operation of motor vehicles by probationary license holders and temporary instruction permit holders who are less than 18 years of age. Rhode Island SB 2451 prohibits the use of cell phones by minors by driving.

Utah enacted two teen driving related bills. HB 363 allows the Driver License Division to issue a learner permit to a person who is at least 15 years of age under certain circumstances. SB 118 repeals the affirmative defense to the prohibition against a person younger than 17 years of age operating a motor vehicle on a highway between specified hours. West Virginia SB 219 relates to the requirements for obtaining a graduated driver's license. Wyoming SF 29 directs the department of education, in consultation with the department of transportation, to adopt standards and procedures for the certification of drivers' education courses.

Towing Issues

California AB 2210 requires a property owner or lessee to include the name and telephone number of each towing company party to a written towing authorization with that person, and that the tow truck operator is to notify the registered owner of removal of a vehicle, grounds for the removal, and the place where the vehicle has been removed to. Hawaii HR 80 urges the Honolulu Police Department to check vehicle status prior to towing to ensure towing fees on stolen vehicles will not be passed on to the victims.

Louisiana enacted two towing-related bills. SB 685 prohibits an insurer from assuming the legal title of a motor vehicle unless the insurer assumes any covered towing and storage charges which are owed pursuant to the insurance policy. SB 733 authorizes certain indemnity trust to provide physical damage and collision coverage for tow trucks. Oklahoma SB 1521 allows wreckers to collect lawful fees from the responsible party. Virginia HB 1258 relates to liens by tow trucks, wreckers, towing and recovery vehicles while SB 134 provides that every keeper of a livery stable, hangar, tie-down, marina, or garage shall have a lien upon the items it keeps until towing, storage, recovery charges are paid.

Traffic Offenses

Five states enacted laws dealing with blood or breath tests. They include Connecticut HB 5839, which relates to blood or breath tests of surviving operators involved in motor vehicle accidents. New York SB 8232 prohibits a person from operating a motor vehicle while such person has .18 grams or more by weight of alcohol in such person's blood. Rhode Island SB 2072 relates to refusal to submit to a chemical test. South Dakota SB 1 provides for the mandatory withdrawal of blood or other bodily substances subsequent to arrest for driving under the influence of alcohol or drugs. Virginia HB 514 provides that evidence admissible in any court in any criminal or civil proceeding as evidence of the validity and accuracy of an individual's blood alcohol breath test shall include any and all documentation.

Eight states revised their DUI laws. They include Alabama HB 117, which relates to driving under the influence of alcohol or a controlled substance, prior convictions from another state or municipality and consideration for enhancement of sentence. Arizona SB 1560 relates to impaired driving, traffic accidents and implied consent for tests of a person's blood, breath, urine or other bodily substance to determine alcohol or drug content if the person is involved in a traffic accident resulting in death or serious physical injury and SB 1274, which relates to driving while under the influence and provides for an ignition interlock device, suspension of driving privilege and exemption for driving to a screening, treatment or education facility.

Illinois HB 4717 allows a municipality to charge an offender with a municipal misdemeanor offense where the state's attorney rejects or denies felony charges for driving under the influence of alcohol, drugs or intoxicating compounds. New Hampshire HB 1243 reduces certain fines for motor vehicle violations, including driving under the influence. Rhode Island SB 2970 relates to driving under the influence of liquor or drugs. South Dakota HB 1190 specifies exclude ridden animals and bicycles from the definition of violations of the DUI statutes while HB 1119 repeals certain mandatory minimum sentences for driving under the influence. Utah SB 18 relates to driving under the influence amendments. Virginia HB 41 clarifies that the additional punishment for two offenses of DUI is applicable to any second offense occurring within five years after any second offense. Virginia SB 299 relates to maximum punishment for DUI offenses.

Six states enacted legislation dealing with death or serious injuries. Arizona HB 2208 establishes the crimes of causing death by use of a vehicle and causing serious physical injury by use of a vehicle. California AB 2190 makes reckless driving and engaging in a motor vehicle speed contest that proximately causes great bodily injury to another person an alternate felony/misdemeanor. Iowa SF 2267 relates to safe motor vehicle operation, including penalties for motor vehicle violations causing death or serious injury. Iowa HF 2398 relates to criminal penalties for a driver convicted of failure to stop and render aid at the scene of a motor vehicle accident resulting in serious injury.

New Jersey AB 911 clarifies jurisdiction concerning matters involving death or serious bodily injury and motor vehicle offenses arising out of the same incident. New York AB 4914 mandates revocation and suspension of driver's licenses for conviction of a traffic infraction for a subsequent violation when such infraction caused serious physical injury or death. New York SB 8445 creates three new crimes regarding fleeing a police officer in a motor vehicle causing physical injury. South Dakota HB 1118 revises provisions regarding failure to stop at the command of a law enforcement officer.

Ten states enacted legislation dealing with traffic penalties. They include Illinois SB 2962, which provides that any person who drives without a license or permit is guilty of a Class A misdemeanor, if at the time of the violation the person's driver's license or permit was cancelled because the person failed to register as a sex offender. Indiana HB 1108, which amends the definition of aggressive driving and SB 145, which permits forfeiture of a motor vehicle operated by a person who has a prior unrelated conviction regarding lack of financial responsibility, a DUI, a suspended driver's license or never having received a license. Maine HB 1347 relates to operating a vehicle after license suspension, and establishes penalty scales for repeat and habitual offenders.

Maryland HB 524 relates to a second or subsequent violation of the offense of driving without a license. New Hampshire HB 1448 modifies the applicability of certain provisions of the statute requiring drivers' license revocations or denials for drugs or alcohol involvement. South Dakota HB 1163 revised certain provisions regarding court suspensions and revocations of driver licenses.

Tennessee SB 3201 amends provisions relating to blood alcohol content necessary to constitute the offense of boating under the influence. Vermont HB 97 relates to a suspended license. Virginia HB 1546 defines reckless driving. West Virginia SB 473 enhances penalties for reckless driving which results in defined serious bodily injury.

Five states enacted miscellaneous traffic offense laws. They include Alaska HB 266, which relates to offenses and penalties for violations of vehicle weight limitations. New Hampshire HB 298 consolidates statutes relating to alcohol and drugs and the operation of vehicles, off highway recreational vehicles, and boats into a single chapter in the motor vehicles title.

Tennessee enacted three miscellaneous traffic offense laws. They include HB 2595, which provides that persons convicted of drunk driving as a condition of prohibition, shall be required to remove litter from highways. HB 3154, which allows a Tennessee driver, who is ticketed by the highway patrol for speeding, to enter a guilty plea in the appropriate court of the driver's home county and, subject to approval of the court, to attend traffic school in the driver's home county rather than in the county in which the ticket was issued. SB 3702, which creates Class C misdemeanor offense of possessing or selling a radar jamming device or of knowingly operating a motor vehicle with such a device in the vehicle.

Utah enacted two miscellaneous traffic offense laws. They include SB 13, which provides that a court record of conviction or plea held in abeyance that is forwarded to the Driver License Division shall include certain information. SB 51 changes the penalty for causing a serious injury while operating a vehicle and also having marijuana or derivative equivalent substances in the body from the current Class A misdemeanor to a third degree felony. West Virginia SB 644 authorizes the motor vehicle insurance verification program.

Traffic Safety

Three states enacted seat belt laws. They include Alaska SB 87, which relates to motor vehicle safety belt violations on highway. Mississippi HB 409 deletes the provisions that permit a fine to be imposed for a violation of the seat belt law only if the violator is also charged and convicted of some other offense. North Carolina SB 774 modifies the seat belt use statutes to enhance the use of seat belts.

Two states enacted child restraint laws. They include Alabama SB 38, which provides for the use of child passenger restraints. New Hampshire HB 1201 clarifies the applicability of certain child passenger restraint requirements.

Four states enacted safe driving laws. They include California AB 2407, which allows a mature driver to renew a safe-driving certificate by completing a driver-improvement course with 240 minutes of instruction rather than 400 minutes. Idaho HB 462 lowers the age of eligibility from 65 to 55 for the discount in auto insurance rates based on completing a motor vehicle accident prevention course. Rhode Island SB 2302 relates to uniform safe driver program. Tennessee SB 3268 allows private organizations that contract with the Department of Safety to conduct motorcycle rider education courses.

Other traffic safety bills include California AB 2542, which requires the Department of Motor Vehicles to conduct a pilot study on a 3-tier assessment system to determine the effectiveness of the system in identifying functional impairments, reducing crashes and prolonging safe driving years of all drivers regardless of age. California SB 1613 which prohibits a driver, beginning July 1, 2008, from using a wireless phone while operating a vehicle unless the phone is specifically designed and configured to allow hands-free operation and Missouri SB 872, which enacts various provisions relating to the safe operation of motor vehicles to ensure the safety of highway workers, emergency workers and other motorists.

UM/UIM

Seven states enacted eight UM/UIM laws. They include Alabama HJR 87, which creates the uninsured motorist compliance joint interim legislative committee to study all facets of compliance with mandatory liability insurance statutes. Arizona HB 2164 provides that an insurer is not liable for uninsured motorist coverage benefits unless the person making the claim gives written notice to the insurer of the person's intent to purse the claim against the uninsured motorist portion of a motor vehicle policy within 3 years after the date of the accident. Georgia SB 531 changes certain provisions relating to damages recoverable by an insured under uninsured motorist coverage. Maine HB 1422 requires a motor vehicle insurance policy to include coverage for the protection of persons legally entitled to recover damages from owners of uninsured, underinsured or hit-and-run motor vehicles for bodily injury, sickness, disease or death sustained by an insured person.

Utah enacted two bills. HB 17, which relates to the uninsured motorist identification database program amendments. SB 224 amends the provisions relating to arbitration for uninsured and underinsured motorist coverage claims. Vermont HB 79 clarifies that a motor vehicle is underinsured to the extent that its personal injury liability insurance is unavailable to any injured party due to claims made by other parties injured in an accident. Washington HB 2415 provides that covered persons are entitled to coverage without regard to whether an incident was intentionally caused.

Watercraft Issues

Connecticut SB 285 prohibits children under the age of six from riding on personal watercraft. New York SB 7154 makes the penalties for boating while intoxicated and boating while ability impaired the same as driving while intoxicated and driving while ability impaired. Utah HB 242 requires each resident owner and certain nonresident owners of a motorboat to maintain owner's and operator's security if the motorboat is operated on the water of the state. West Virginia SB 605 relates to a personal property tax receipt proof of prerequisite for vehicle or motorboat registration.