LD 1392
pg. 2
Page 1 of 2 An Act Concerning the Lapse of Automobile Insurance LD 1392 Title Page
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LR 507
Item 1

 
When an expiration date is not specified on the certificate, the
policy continues until canceled or superseded in accordance with
section 1605, subsection 5.

 
The insurance company shall notify the Secretary of State of a
cancellation of a policy within 30 days of cancellation of a
policy that was maintained to meet the requirements of this
chapter.

 
SUMMARY

 
This bill requires an insurance company to notify the
Secretary of State within 30 days after the cancellation of an
automobile insurance policy that was maintained to meet the
requirements of the financial responsibility law. The Secretary
of State then requests proof of financial responsibility from the
former policyholder and, if proof is not given, the Secretary of
State notifies the local law enforcement agency of the
noncompliance and the law enforcement agency removes the
registration plates from the uninsured motor vehicle. Upon
notification that financial responsibility has been met, the
Secretary of State returns the registration plates to the owner.


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