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BILL AS INTRODUCED 2007-2008

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S.333

Introduced by Senator Ayer of Addison District

Referred to Committee on

Date:

Subject:  Motor vehicles; insurance; cancellation; notification

Statement of purpose:  This bill proposes to require insurance companies that underwrite motor vehicle liability insurance to notify the department of motor vehicles when an insured cancels a liability policy.

AN ACT RELATING TO NOTIFYING THE DEPARTMENT OF MOTOR VEHICLES WHEN LIABILITY INSURANCE IS CANCELED

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  23 V.S.A. § 800(a) is amended to read:

(a)  No The owner or operator of a motor vehicle that is required to be licensed shall not operate or permit the operation of the vehicle upon the highways of the state without having in effect an automobile liability policy or bond in the amounts of at least $25,000.00 for one person, and $50,000.00 for two or more persons killed or injured, and $10,000.00 for damages to property in any one accident.  In lieu thereof As an alternative to this requirement, evidence of self-insurance in the amount of $115,000.00 must be filed with the commissioner of motor vehicles.  Such financial responsibility shall be maintained and evidenced in a form prescribed by the commissioner.  The commissioner may require that evidence of financial responsibility be produced before motor vehicle inspections are performed pursuant to the requirements of section 1222 of this title.  Whenever an insured cancels a liability policy, or reduces the coverage below that which is required by this subsection, the insurance underwriter shall notify the department of motor vehicles.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us