| Be it enacted by the People of the State of Maine as follows: |
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| | Sec. 1. 29-A MRSA §1602, sub-§1-A is enacted to read: |
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| | 1-A.__Demand after cancellation or termination of policy.__On | the 11th day after receipt of a notice of cancellation or | termination of the policy required under section 1606, subsection | 5, the Secretary of State shall demand of the former policyholder | proof of financial responsibility under section 1605.__This | notice must include a statement of the legal penalties for | failure to provide the proof demanded. |
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| This subsection does not apply to: |
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| A.__Cancellation or termination occasioned by sale of the | vehicle insured by the policy; or |
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| B.__Cancellation or termination when substitute proof of | financial responsibility has been provided in a timely | fashion and accepted by the Secretary of State. |
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| | Sec. 2. 29-A MRSA §1606, sub-§5, as enacted by PL 1993, c. 683, Pt. A, | §2 and affected by Pt. B, §5, is amended to read: |
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| | 5. Cancellation of policy. A policy certified as proof of | financial responsibility may not be canceled until at least 10 | days after notice of cancellation has been filed in the office of | the Secretary of State. The company may not cancel a policy | until the insured has presented to the company a receipt from the | Secretary of State indicating that the registration plates | assigned to the insured motor vehicle have been returned to the | Secretary of State. |
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| A policy subsequently certified terminates on the effective date | of certification the insurance previously certified with respect | to a motor vehicle designated in both certificates. |
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| The company may specify on a certificate the expiration date of | the policy. When an expiration date is provided, the policy is | deemed terminated for purposes of this chapter on and after that | date, unless that policy has been previously canceled or | superseded. Ten days before the specified expiration date, the | company shall send to the Secretary of State a notice of | termination by expiration of the policy. |
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| When an expiration date is not specified on the certificate, the | policy continues until canceled or superseded in accordance with | section 1605, subsection 5. |
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