Sec. 1. 29-A MRSA §1601, sub-§6-A is enacted to read:

6-A.__Suspension; accident.__The Secretary of State shall suspend the license of a person who is involved in a motor vehicle accident and causes damage to another motor vehicle or a person until that person has paid for the damage caused to the other motor vehicle or the person.

Sec. 2. 29-A MRSA §1611, sub-§3, as enacted by PL 1993, c. 683, Pt. A, §2 and affected by Pt. B, §5, is amended to read:

3. Maintenance of insurance. The owner or owners of any vehicle subject to this section shall maintain at all times the required amount of insurance or bond during the term of the vehicle's registration. For vehicles registered in this State, the Secretary of State shall immediately suspend or revoke, pursuant to chapter 23, the registration certificate and registration plates of any vehicle for which the insurance or bond in the amounts required is not maintained. Any person whose registration certificate, registration plates and operating authority license have been suspended or revoked pursuant to this section shall immediately return the registration certificate, registration plates and the operating authority license to the Secretary of State. An insurance company that becomes aware of a client who allows the insurance to lapse, cancels the insurance or in any way fails to meet the requirements of this section for a motor vehicle registered in this State immediately shall notify the Secretary of State of the identity of the motor vehicle owner and the registration number of the motor vehicle. For vehicles not required to be registered in this State, the Secretary of State shall suspend the person's operating authority license or right to operate in this State.

SUMMARY

This bill authorizes the Secretary of State to suspend the license of an uninsured person that is involved in a motor vehicle accident and causes damage to another motor vehicle or a person until the operator has paid for all damages to the other motor vehicle or the person. The bill also requires an insurance company to notify the Secretary of State if an insured person allows the insurance to lapse on a motor vehicle.