H. B. 2183
(By Delegate Pulliam)
[Introduced February 18, 1993; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact sections three and seven, article
three, chapter seventeen-a of the code of West Virginia, one
thousand nine hundred thirty-one, as amended; and to amend
and reenact section four, article two-a and section two,
article four, both of chapter seventeen-d of said code, all
relating to making the show of actual proof of insurance
mandatory upon registration of a motor vehicle, providing a
proof of insurance decal, providing for fees for those
decals and increasing minimum amounts of liability
insurance.
Be it enacted by the Legislature of West Virginia:
That sections three and seven, article three, chapter
seventeen-a of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted; and
that section four, article two-a and section two, article four,
both of chapter seventeen-d of said code be amended and
reenacted, all to read as follows:
CHAPTER 17A. MOTOR VEHICLE ADMINISTRATION, REGISTRATION,
CERTIFICATE OF TITLE, AND ANTITHEFT PROVISIONS.
ARTICLE 3. ORIGINAL AND RENEWAL OF REGISTRATION; ISSUANCE OF
CERTIFICATES OF TITLE.
§17A-3-3. Application for registration; statement of insurance
or other proof of security to accompany application;
criminal penalties; fees; special revolving fund.
Every owner of a vehicle subject to registration hereunder
shall make application to the department for the registration
thereof upon the appropriate form or forms furnished by the
department and every such application shall bear the signature of
the owner or his authorized agent, written with pen and ink, and
said application shall contain:
(1) The name, bona fide residence and mailing address of the
owner, the county in which he resides, or business address of the
owner if a firm, association or corporation.
(2) A description of the vehicle including, insofar as the
hereinafter specified data may exist with respect to a given
vehicle, the make, model, type of body, the manufacturer's serial
or identification number or other number as determined by the
commissioner.
(3) In the event a motor vehicle is designed, constructed,
converted or rebuilt for the transportation of property, the
application shall include a statement of its declared gross
weight if such motor vehicle is to be used alone, or if such
motor vehicle is to be used in combination with other vehicles,the application for registration of such motor vehicle shall
include a statement of the combined declared gross weight of such
motor vehicle and the vehicles to be drawn by such motor vehicle;
declared gross weight being the weight declared by the owner to
be the actual combined weight of the vehicle or combination of
vehicles and load when carrying the maximum load which the owner
intends to place thereon; and the application for registration of
each such vehicle shall also include a statement of the distance
between the first and last axles of that vehicle or combination
of vehicles. The declared gross weight stated in the application
shall not exceed the permissible gross weight for the axle
spacing listed therein as determined by the table of permissible
gross weights contained in chapter seventeen-c of this code; and
any vehicle registered for a declared gross weight as stated in
the application shall be subject to the single-axle load limit
set forth in chapter seventeen-c of this code.
(4) Each such applicant shall state whether such vehicle is
or is not to be used in the public transportation of passengers
or property, or both, for compensation, and if so used, or to be
used, the applicants shall so certify, and shall, as a condition
precedent to the registration of such vehicle, obtain a
certificate of convenience, or permit from the public service
commission.
(5) A statement under penalty of false swearing that Actual
proof of insurance by the certificate provided for in section
four, article two-a, chapter seventeen-d of this code must bepresented at time of registration proving that liability
insurance is in effect within limits which shall be no less than
the requirement of section two, article four, chapter seventeen-d
of this code, which statement certificate shall contain the name
of the applicant's insurer, the name of the agent or agency which
issued the policy and the effective date of the policy, and such
other information as may be required by the commissioner of motor
vehicles, or that the applicant has qualified as a self-insurer
meeting the requirements of section two, article six, chapter
seventeen-d of the code and that as a self-insurer he has
complied with the minimum security requirements as established in
section two, article four of said chapter seventeen-d, or that
such applicant has submitted bond or other security approved by
the commissioner of motor vehicles which shall provide the
equivalent of the policy of insurance herein specified, or that
the applicant has submitted the required cash or other securities
with the state treasurer as set forth in the provisions of
section sixteen, article four of said chapter seventeen-d of this
code.
In the case of a periodic use or seasonal vehicle, as
defined in section three, article two-a, chapter seventeen-d, the
owner may provide, in lieu of other statements required by this
section, a statement, under penalty of false swearing, that
liability insurance is in effect during the portion of the year
the vehicle is in actual use, within limits which shall be no
less than the requirements of section two, article four, chapterseventeen-d of this code, and other information relating to the
seasonal use, on a form designed and provided by the department.
The department shall periodically select for verification,
on a random sample basis, not fewer than one percent of the
statements of liability insurance required by this section. When
a statement is selected for verification, the department shall
forward the information provided on the statement to the listed
insurer. The insurer shall notify the department, by such form
as the commissioner may require, within thirty calendar days if
the liability insurance is not in effect, as required by this
section.
The department may select for verification any statement of
liability insurance submitted by a person who has previously been
convicted of violating the provisions of section three, article
two-a, chapter seventeen-d of this code, or whose statements of
liability insurance have previously been found to be incorrect.
The department may also determine the correctness of information
relating to proof of other security satisfying the requirements
of this section.
If the department determines through the verification
process that there is no liability insurance in effect, then
within fifteen days of receipt of notice from the insurer, the
commissioner of motor vehicles shall inform the registrant that
the department of motor vehicles has received the notice from the
insurer. This information shall be sent by regular mail and
shall request verification of insurance or a statement from theregistrant, under penalty of false swearing, that cancellation
will not result in the operation of an uninsured vehicle upon the
highways of this state, and this verification shall be returned
to the commissioner within twenty days of the date of mailing.
Following the twenty-day period, if the registrant has not
responded, then the commissioner shall send a notice of pending
suspension to the registrant by certified mail. The notice of
pending suspension shall grant the registrant an additional
twenty days from the date of the mailing to provide verification
of insurance or other requested information to the commissioner.
Following this twenty-day period, an order of suspension shall be
directed to the superintendent by the commissioner as provided in
section seven, article nine, chapter seventeen-a of this code:
Provided, That whenever the commissioner determines that the
vehicle was actually insured despite the receipt of a notice from
the insurer, and the registrant, under penalty of false swearing
produces a statement that cancellation will not result in the
operation of an uninsured vehicle upon the highways of this
state, or produces verification of insurance, suspension shall be
withdrawn and any fees collected by the state shall be returned.
The registrant shall be given notice and afforded an opportunity
for hearing and judicial review thereof in accordance with the
provisions of subsection (c), section seven, article two, chapter
seventeen-d of this code.
If any person making an application required under the
provisions of this section, therein knowingly provides falseinformation, false proof of security or a false statement of
insurance, or if any person, including an applicant's insurance
agent, knowingly counsels, advises, aids or abets another in
providing false information, false proof of security, or a false
statement of insurance in such application, he is guilty of a
misdemeanor, and, upon conviction thereof, shall be fined not
more than five hundred dollars, or be imprisoned in the county
jail for a period not to exceed fifteen days, or both fined and
imprisoned, and in addition to such fine or imprisonment shall
have his operator's or chauffeur's license and vehicle
registration suspended for a period of six months.
(6) Such further information as may reasonably be required
by the department to enable it to determine whether the vehicle
is lawfully entitled to registration.
(7) Each such application for registration shall be
accompanied by the fees hereafter provided, and an additional fee
of one dollar for each motor vehicle for which the applicant
seeks registration, such fee to be deposited in a special
revolving fund for the operation by the department of its
functions established by the provisions of article two-a, chapter
seventeen-d of this code: Provided, That July one, one thousand
nine hundred eighty-five, the additional fee will reduce to and
remain at fifty cents.
§17A-3-7. Grounds for refusing registration or certificate of
title.
The department shall refuse registration or issuance of acertificate of title or any transfer of registration upon any of
the following grounds:
(1) That the application contains any false or fraudulent
statement or that the applicant has failed to furnish required
information or reasonable additional information requested by the
department or that the applicant is not entitled to the issuance
of a certificate of title or registration of the vehicle under
this chapter;
(2) That the applicant fails to present a statement of
insurance or proof of insurance or proof of other security as
required pursuant to the provisions of section three of this
article;
(3) That the vehicle is mechanically unfit or unsafe to be
operated or moved upon the highways;
(4) That the department has reasonable grounds to believe
that the vehicle is a stolen or embezzled vehicle or that the
granting of registration or the issuance of certificate of title
would constitute a fraud against the rightful owner or other
person having a valid lien upon such vehicle;
(5) That the registration of the vehicle stands suspended or
revoked for any reason as provided in the motor vehicle laws of
this state;
(6) That the required fee has not been paid.
CHAPTER 17D. MOTOR VEHICLE SAFETY RESPONSIBILITY LAW.
ARTICLE 2A. SECURITY UPON MOTOR VEHICLES.
§17D-2A-4. Certificate of insurance; insurance decal, fees for
decals.
(a) All insurance carriers transacting insurance in this
state shall supply a certificate to the insured or to any person
subject to the registration provisions of article three, chapter
seventeen-a of this code, certifying that there is in effect a
motor vehicle liability policy upon such motor vehicle in
accordance with the provisions of article three, chapter
seventeen-a of this code. The certificate shall give its
effective date and the effective date of the policy and, unless
the policy is issued to a person who is not the owner of a motor
vehicle, must designate by explicit description, in such detail
as the commissioner of the department of motor vehicles shall by
rule require, all motor vehicles covered and all replacement
vehicles of similar classification: Provided, That on and after
the first day of July, one thousand nine hundred eighty-four,
insurance companies shall supply a certificate of insurance in
duplicate for each policy term and for each vehicle included in
a policy, except for those listed in a fleet policy. Each such
certificate of insurance shall list the name of the policyholder
and the name of the vehicle owner if different from the
policyholder.
The certificate must specify for each vehicle listed
therein, that there is a minimum liability insurance coverage not
less than the requirements of section two, article four, chapter
seventeen-d of this code.
(b) The certificate provided pursuant to the provisions ofthis section or other proof of insurance shall be carried by the
insured in the appropriate vehicle for use as proof of security,
and must be presented at the time of vehicle inspection as
required by article sixteen, chapter seventeen-c of this code:
Provided, That an insured shall not be guilty of a violation of
this subsection (b) if he furnishes proof that such insurance was
in effect within seven days of being cited for not carrying such
certificate or other proof in such vehicle. As used in this
section, proof of insurance means a certificate of insurance, an
insurance policy, a mechanically reproduced copy of an insurance
policy or a certificate of self-insurance.
(c) Each company providing automobile liability insurance
shall provide to each customer a proof of insurance decal which
includes the expiration date of the paid up policy to be applied
to the driver's side windshield, beside the inspection sticker,
for each automobile insured in the state. Each insurance company
shall provide the proof of insurance decal upon renewal of an
automobile policy.
(d) Each automobile insurance company providing proof of
insurance decals may charge their customers one dollar per
vehicle for each decal provided upon renewal.
ARTICLE 4. PROOF OF FINANCIAL RESPONSIBILITY FOR THE FUTURE.
§17D-4-2. "Proof of financial responsibility" construed.
The term "proof of financial responsibility" as used in this
chapter shall mean: Proof of ability to respond in damages for
liability, on account of accident occurring subsequent to theeffective date of said proof, arising out of the ownership,
operation, maintenance or use of a motor vehicle, trailer or
semitrailer in the amount of twenty thousand one hundred thousand
dollars because of bodily injury to or death of one person in any
one accident, and, subject to said limit for one person, in the
amount of forty thousand three hundred thousand dollars because
of bodily injury to or death of two or more persons in any one
accident, and in the amount of ten thousand fifty thousand
dollars because of injury to or destruction of property of others
in any one accident.
NOTE: The purpose of this bill is to make the show of
actual proof of insurance mandatory upon registration of a motor
vehicle, providing for a proof of insurance decal, providing for
fees for those decals and increasing the minimum amounts of
liability insurance allowed by law.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.