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Introduced Version Senate Bill 676 History

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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 676

(By Senators Minard, Oliverio, Helmick, Jenkins and Unger)

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[Introduced March 23, 2009; referred to the Committee on Banking and Insurance; and then to the Committee on Government Organization.]

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A BILL to amend and reenact §17D-2A-5 of the Code of West Virginia, 1931, as amended, relating to reducing the number of uninsured motor vehicles operating in West Virginia by requiring any motor insurance company licensed by the State of West Virginia to electronically provide daily to the Division of Motor Vehicles a notice of all active motor vehicle insurance policies.

Be it enacted by the Legislature of West Virginia:
That §17D-2A-5 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 2A. SECURITY UPON MOTOR VEHICLES.

§17D-2A-5. Notice of insurance policy; suspension of registration; minimum policy term.

(a) An Any insurance company shall provide the Division of Motor Vehicles with a cancellation notice within ten days of the effective date of cancellation whenever the company issues or causes to be issued a cancellation under the provisions of subsections (b) through (e), section one, article six-a, chapter thirty-three of this code licensed to issue a contract of motor vehicle liability insurance in the State of West Virginia shall, on a daily basis, electronically provide the Division of Motor Vehicles, or its agent, a notice of all active motor vehicle insurance policies in the manner, and method prescribed by the commissioner. Unless the Division of Motor Vehicles by legislative rule allows for an alternative to suspension, the division shall then suspend the driver license of the owner of such vehicle for a period of thirty days and shall suspend the motor vehicle registration until proof of insurance is presented to the division. If, within the thirty-day period a license or registration is suspended, the owner shows proof of insurance, the owner's license and registration shall be immediately removed from suspension. If a license or registration is not suspended as result of the cancellation of insurance, the owner of the motor vehicle shall submit a statement under penalty of false swearing, that the cancellation will not result in the operation of an uninsured motor vehicle upon the highways of this state, and this verification shall be sent to the commissioner within twenty days of the notice of cancellation.
(b) On or before January 15, 1985, the Commissioner of Motor Vehicles shall report to the Legislature upon proceedings pursuant to this section. The report shall include the total number of statements selected for verification as required by section three, article three, chapter seventeen-a, the total number of notices received from insurers, the total number of notices of pending suspensions issued and the total number of cases in which cancellation was found to have resulted in a lapse of coverage upon a vehicle operated upon the highways of this state during the prior year.
(c) No policy of motor vehicle liability insurance issued or delivered for issuance in this state shall be contracted for a period of less than ninety days. Provided, That However, the Insurance Commissioner may establish exceptions thereto by rules and regulations to chapter twenty-nine-a.
NOTE: The purpose of this bill is to reduce the number of uninsured motor vehicles operating in West Virginia by updating the current system for verifying insurance coverage through the issuance of paper insurance identification cards which is subject to abuse and can be inaccurate because the current system does not operate in "real time" and does not very accurately verify that insurance coverage is currently in place on a vehicle.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
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