SB 489

Under current law, any person whose operating privilege or vehicle registration

has been suspended for failure to deposit security or demonstrate financial

responsibility after an accident or judgment arising from an accident must provide,

and maintain in effect, proof of financial responsibility as a condition of

reinstatement of the operating privilege or vehicle registration unless at least three

years have elapsed since the person became eligible for reinstatement of the

operating privilege or vehicle registration. This applies to any resident or

nonresident operator or owner of a motor vehicle involved in an accident in this state.

The Department of Transportation may also require proof of financial responsibility

in other circumstances, including for issuance of an operator's license after

revocation by this state of a person's operating privilege. A nonresident may give

proof of financial responsibility by furnishing certification of a motor vehicle liability

insurance policy in effect for the benefit of the nonresident, issued by an insurer that

satisfies specified requirements, which requirements are specific to nonresidents.

This bill eliminates any requirement that nonresidents provide proof of

financial responsibility with respect to reinstatement of a suspended operating

privilege or registration in this state, and repeals the provision specifying the form

of, and requirements related to, proof of financial responsibility provided by

nonresidents.

For further information, see the

Notes

provided by the Law Revision

Committee of the Joint Legislative Council.