SB 39

Under this bill, the Department of Transportation may issue a certificate of

self-insurance to a religious sect that meets specified requirements.

Under current law, subject to certain exceptions, a person may not 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

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.

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

property damage of $1,000 or more, DOT is required to notify the operator and the

owner of the vehicle that the person must deposit with DOT security for the accident

in an amount sufficient to satisfy any resulting judgment for damages. If DOT

receives a copy of a judgment for damages of $500 or more arising out of a motor

vehicle accident, the person against whom the judgment was rendered is required

to 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 may show that the person is a self-insurer possessing a certificate

of self-insurance issued by DOT.

Under this bill, upon application, DOT may issue a certificate of self-insurance

to a religious sect the members of which have a history of mutual financial assistance

and have collectively registered with DOT more than 25 vehicles. If DOT issues a

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

be used in lieu of motor vehicle liability insurance by members of the religious sect

to satisfy proof of financial responsibility and mandatory motor vehicle liability

insurance requirements.