Penalties for violations related to the motor vehicle liability insurance requirement, proof of financial responsibility, and providing a penalty. (FE)

1. Forge, falsify, counterfeit, or fraudulently alter an insurance document.

2. Possess any forged, falsified, fictitious, counterfeit, or fraudulently altered insurance document.

3. Represent that an insurance document is valid and in effect, knowing or having reason to believe that the document is not valid or not in effect.

Any person who violates this provision may be required to forfeit not more than $5,000.

This bill alters the penalties for violations of the motor vehicle insurance requirements. Under this bill, a person who violates the requirement that the owner or operator of a motor vehicle be insured is subject to the following penalties:

1. A forfeiture of not less than $1,000 and not more than $5,000 for a first offense.

2. A forfeiture of not less than $2,500 nor more than $7,500 for a second or subsequent offense occurring within three years.

3. If the person, in the course of the violation, causes bodily harm to another or damage to the property of another, a forfeiture of not less than $5,000 nor more than $7,500. If, however, the person committing the violation knows at the time of the violation that he or she is not appropriately insured, the person committing the violation is guilty of a Class I felony, punishable by a fine not to exceed $10,000 or imprisonment not to exceed three years and six months, or both.

4. If the person, in the course of the violation, causes the death of another, a forfeiture of not less than $7,500 nor more than $10,000. If, however, the person committing the violation knows at the time of the violation that he or she is not appropriately insured, the person committing the violation is guilty of a Class H felony, punishable by a fine not to exceed $10,000 or imprisonment not to exceed six years, or both.

Also under this bill, a person who violates the possession of proof of insurance requirement may be required to forfeit not less than $25 nor more than $125 for a first offense, not less than $150 nor more than $300 for the second offense occurring within three years, and not less than $250 nor more than $500 for the third or subsequent offense occurring within three years.

This bill also provides that a person who violates a prohibition on improperly creating the appearance of satisfying the insurance requirement may be required to forfeit not less than $1,000 nor more than $5,000 for a first offense and not less than $2,500 nor more than $7,500 for a second or subsequent offense occurring within three years.

Also under current law, if the Department of Transportation (DOT) receives a certified copy of a judgment for damages of $500 or more arising out of a motor vehicle accident, DOT must, with certain exceptions, immediately suspend the operating privilege and all registrations of the person against whom the judgment was rendered unless the person can provide proof of financial responsibility. Proof of financial responsibility may be given by filing certification of coverage under a motor vehicle liability insurance policy with minimum limits for any single accident of $25,000 for bodily injury to or death of one person, $50,000 for bodily injury to or death of more than one person, and $10,000 for property damage. Alternatively, proof of financial responsibility may be furnished by depositing with DOT $60,000 in cash or certain securities with a market value of $60,000. DOT must then hold the deposit of cash or securities to satisfy any judgment against the person making the deposit for damages resulting from the ownership, maintenance, use, or operation of a motor vehicle, including damages for bodily injury, death, or property damage.

Under this bill, if DOT receives a record of conviction for operating a motor vehicle on a highway without having in effect a motor vehicle liability insurance policy with respect to the vehicle, DOT must suspend the person's operating privilege and all registrations of the person unless the person can provide proof of financial responsibility. The proof of financial responsibility requirement remains in effect for five years from the date of conviction.

Finally, this bill prohibits a person who violates the requirement that the owner or operator of a motor vehicle be insured from recovering noneconomic damages in an action arising from a motor vehicle accident involving an insured person, regardless of who is at fault in the accident.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report concerning the proposed penalty and the costs or savings that are likely to result if the bill is enacted.