SB 534

Under current law, if a motor vehicle accident results in injury, death, or

property damage of $1,000 or more, the Department of Transportation (DOT) is

required to notify the operator and the owner of the vehicle involved in the accident

that the person must deposit with DOT security for the accident in an amount

determined by DOT to be sufficient to satisfy any judgment for damages resulting

from the accident. Unless an exception applies, if a person fails to timely deposit

security after this notice, DOT must suspend the person's operating privilege if the

person was the vehicle operator and suspend all vehicle registrations of the person

if the person was the vehicle owner. One of the exceptions is that the person provides

proof of financial responsibility. In addition, if DOT receives a certified copy of a

judgment for damages of $500 or more arising out of a motor vehicle accident, DOT

must 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. In both situations, proof of financial responsibility includes

coverage under a motor vehicle liability insurance policy with specified minimum

liability limits. In lieu of a motor vehicle liability insurance policy, a person can show

that the person is a self-insurer possessing a certificate of self-insurance issued by

DOT.

Also under current law, subject to certain exceptions, a person cannot operate

a motor vehicle in this state unless the owner or operator of the vehicle has in effect

a motor vehicle liability insurance policy for the vehicle providing coverage in at least

specified minimum liability limits. However, there is an exception for a motor vehicle

owned by a self-insurer possessing a certificate of self-insurance issued by DOT.

Under current law, a person who owns a fleet of more than 25 motor vehicles

registered in the person's name may qualify as a self-insurer. Upon application,

DOT may issue a certificate of self-insurance to the person if DOT is satisfied that

the person is possessed, and will continue to be possessed, of ability to pay judgments

obtained against the person.

Under this bill, a religious sect the members of which have collectively

registered with DOT more than 25 vehicles may qualify as a self-insurer. Upon

application, DOT may issue a certificate of self-insurance to a religious sect the

members of which have a long-standing history of providing mutual financial

assistance in a time of need, if DOT is satisfied that the religious sect is possessed,

and will continue to be possessed, of ability to pay judgments obtained against the

religious sect. If DOT issues a certificate of self-insurance to a religious sect, the

certificate of self-insurance provides the same exception for members of the religious

sect that, under current law, applies to a fleet owner: the certificate of self-insurance

can be used in lieu of motor vehicle liability insurance to satisfy proof of financial

responsibility and mandatory motor vehicle liability insurance requirements.