Introduced Version






HOUSE BILL No. 1320

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 9-18-2-11.5 ; IC 9-25-5.5 ; IC 27-2-21 .

Synopsis: Notice of motor vehicle insurance cancellation. Requires an insurer to notify the bureau of motor vehicles (BMV) of the cancellation of a motor vehicle insurance policy. Requires the BMV to revoke the operator's license of a person who fails to inform the BMV of how the person will maintain financial responsibility on a vehicle after cancelling a policy.

Effective: July 1, 2003; January 1, 2004.





Kruse




    January 13, 2003, read first time and referred to Committee on Roads and Transportation.







Introduced

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2002 Regular or Special Session of the General Assembly.

HOUSE BILL No. 1320



    A BILL FOR AN ACT to amend the Indiana Code concerning motor vehicles.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 9-18-2-11.5; (03)IN1320.1.1. -->     SECTION 1. IC 9-18-2-11.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 11.5. Beginning January 1, 2004, a registration application form prescribed by the bureau under this chapter must include the following:
        (1) A statement or a substantial equivalent as follows: "Indiana law requires your insurer to report to the Bureau of Motor Vehicles if your vehicle's insurance policy is canceled before the expiration date of the policy.".
        (2) A box next to the statement described in subdivision (1) that the applicant must check before the bureau accepts the applicant's vehicle registration application.

SOURCE: IC 9-25-5.5; (03)IN1320.1.2. -->     SECTION 2. IC 9-25-5.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]:
     Chapter 5.5. Insurance Cancellation Notice
    Sec. 1. (a) Not more than ten (10) days after it receives a notice

of cancellation of a motor vehicle insurance policy under IC 27-2-21 , the bureau shall send a written notice to each person identified in the notice of cancellation as a policyholder of the canceled policy. A notice required by this subsection shall be sent by first class mail or by a means that transmits the notice to the former policyholder at least as quickly as first class mail.
    (b) The notice provided by the bureau under this section must include the following statement or its substantial equivalent:
        "Indiana law requires you to continuously maintain financial responsibility with respect to your motor vehicle for as long as you operate your motor vehicle on the public highways of Indiana. If you rely on this motor vehicle insurance policy to satisfy the financial responsibility requirement and you intend to continue operating your motor vehicle on the public highways of Indiana, you must obtain a new motor vehicle insurance policy to satisfy the financial responsibility requirement or satisfy the requirement by another means allowed by law. Your operator's license will be revoked and subject to confiscation if you do not inform the Bureau of Motor Vehicles of how you will maintain financial responsibility within twenty (20) days after the postmark date of this notice.".
    Sec. 2. Not more than twenty (20) days after the postmark date of a notice sent by the bureau under section 1 of this chapter, the person to whom the notice was sent shall inform the bureau, by first class mail, of the means by which the person will satisfy the financial responsibility requirements of this article with respect to the motor vehicle formerly covered under the canceled motor vehicle insurance policy. If the financial responsibility requirements will be satisfied through insurance, the person shall provide to the bureau a written statement that:
        (1) sets forth:
            (A) the:
                (i) name of the manufacturer;
                (ii) name and year of the model; and
                (iii) identification number;
            of the motor vehicle;
            (B) the policy number of the new motor vehicle insurance policy; and
            (C) the name and address of the insurer issuing the new motor vehicle insurance policy; and
        (2) is signed by:


            (A) the person obtaining the new motor vehicle insurance policy; and
            (B) the insurance producer through whom the new motor vehicle insurance policy is issued.
    Sec. 3. If a person to whom a notice is provided under section 1 of this chapter does not provide the bureau with the information required under section 2 of this chapter, the bureau shall revoke the person's operator's license.
    Sec. 4. The bureau shall notify the insurance commissioner appointed under IC 27-1-1-2 of an insurer violation of IC 27-2-21 of which the bureau is aware.
    Sec. 5. The commission may adopt rules under IC 4-22-2 to administer this chapter.

SOURCE: IC 27-2-21; (03)IN1320.1.3. -->     SECTION 3. IC 27-2-21 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]:
    Chapter 21. Motor Vehicle Insurance
    Sec. 1. As used in this chapter, "motor vehicle insurance" means any of the kinds of insurance described in Class 2(f) of IC 27-1-5-1.
    Sec. 2. As used in this chapter, "insurer" has the meaning set forth in IC 27-1-2-3.
    Sec. 3. (a) An insurer that issued a motor vehicle insurance policy shall notify the bureau of motor vehicles of the cancellation of the policy if the policy is canceled before the expiration date of the policy.
    (b) An insurer shall provide the notice required under subsection (a):
        (1) not more than ten (10) days after the insurer receives notice of cancellation; or
        (2) not less than ten (10) days before the insurer cancels the policy.
    (c) The notice required under this section must be sent by the insurer to the bureau by:
        (1) first class mail; or
        (2) a means that transmits the notice to the bureau at least as quickly as first class mail.
    Sec. 4. The notice required by section 3 of this chapter must include the following:
        (1) The name and mailing address of the insurer.
        (2) The effective date of the cancellation.
        (3) The name and mailing address of each person to whom the policy was issued.
        (4) The following information concerning each motor vehicle covered under the policy:
            (A) The name of the manufacturer.
            (B) The name and year of the model.
            (C) The identification number.