STATE OF OKLAHOMA

Req. No. 6134

Page 1

STATE OF OKLAHOMA

1st Session of the 49th Legislature (2003)

HOUSE BILL HB1813: Benge

AS INTRODUCED

An Act relating to motor vehicles; amending 47 O.S.

2001, Sections 7-600, 7-601, 7-601.1, 7-602 and 7-

609, which relate to the Compulsory Insurance Law;

modifying definition; modifying security

requirements; providing for security based on an

operator’s security verification; providing for

operator’s security verification for more than one

vehicle; providing required warning; modifying proof

of insurance requirements; and providing an effective

date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

SECTION

. AMENDATORY 47 O.S. 2001, Section 7-600, is

amended to read as follows:

Section 7-600. As used in Section 7-600 et seq. of this title:

1. "Owner's policy". An owner's policy of liability insurance:

a. shall designate by explicit description or by

appropriate reference all vehicles with respect to

which coverage is thereby to be granted,

b. shall insure the person named therein and insure any

other person, except as provided in subparagraph c of

this paragraph, using an insured vehicle with the

express or implied permission of the named insured,

against loss from the liability imposed by law for

damages arising out of the ownership, maintenance,

operation or use of such vehicle,

c. may provide for exclusions from coverage in accordance

with existing laws, and

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d. shall be issued by an authorized carrier providing

coverage in accordance with Section 7-204 of this

title, and

e. shall only be applicable if the insurance policy

covers other types of insurance not required by the

Compulsory Insurance Law, such as collision,

comprehensive or uninsured motorist coverage.

2. "Operator's policy". An operator's policy of liability

insurance shall insure the named person against loss from the

liability imposed upon the named person by law for damages arising

out of the operation or use by the named person of any motor vehicle

not owned by the named person, subject to the same limits of

liability required in an owner's policy.

3. "Security". Security means:

a. a policy or bond meeting the requirements of Section

7-204 of this title,

b. a deposit of cash or securities having the equivalency

of limits required under Section 7-204 of this title

as acceptable limits for a policy or bond,

c. self-insurance, pursuant to the provisions of Section

7-503 of this title, having the equivalency of limits

required under Section 7-204 of this title as

acceptable limits for a policy or bond, or

d. for vehicles registered pursuant to the provisions of

Section 1127 of this title, a policy or bond meeting

or exceeding the requirements of Section 7-204 of this

title; provided, the policy or bond may be issued by

an insurance company or surety company authorized to

do business in the state of residence or domicile of

the member of the Armed Forces and the motor license

agent or other registering agency shall accept the

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security verification form issued by such insurance

company or surety company.

4. "Compulsory Insurance Law". Compulsory Insurance Law is the

law requiring liability insurance in conjunction with the operation

of a motor vehicle in this state as found in Section 7-600 et seq.

of this title.

5. "Security verification form". A security verification form

is a form, approved by the Insurance Commissioner, verifying the

existence of security required by the Compulsory Insurance Law of

the State of Oklahoma.

SECTION

. AMENDATORY 47 O.S. 2001, Section 7-601, is

amended to read as follows:

Section 7-601. A. Until January 1, 1983, every owner of a

motor vehicle registered in this state, other than a licensed used

motor vehicle dealer, shall, at all times, maintain in force with

respect to such vehicle security for the payment of loss resulting

from the liability imposed by law for bodily injury, death and

property damage sustained by any person arising out of the

ownership, maintenance, operation or use of the vehicle. As used

herein, "security" means:

1. A policy or bond meeting the requirements of Section 7-204

of this title;

2. A deposit of cash or securities having the equivalency of

limits required under Section 7-204 of this title as acceptable

limits for a policy or bond; or

3. Self-insurance, pursuant to the provisions of Section 7-503

of this title, having the equivalency of limits required under

Section 7-204 of this title as acceptable limits for a policy or

bond.

B. On and after January 1, 1983, every owner of a motor vehicle

registered in this state, other than a licensed used motor vehicle

dealer, shall, at all times, maintain in force with respect to such

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vehicle security for the payment of loss resulting from the

liability imposed by law for bodily injury, death and property

damage sustained by any person arising out of the ownership,

maintenance, operation or use of the vehicle. Every person, while

operating or using a motor vehicle registered in this state which is

not owned by such person, shall maintain in force security for the

payment of loss resulting from the liability imposed by law for

bodily injury, death or property damage sustained by any person

arising out of the operation or use of the vehicle, unless such

security has been provided by the owner in accordance with this

section which does not exclude said person from coverage.

C. 1. On and after September 1, 1993, unless otherwise

provided by law, no motor vehicle shall be operated in this state

unless there is in effect with respect to such vehicle the operator

security for the payment of loss resulting from the liability

imposed by law for bodily injury, death and property damage

sustained by any person arising out of the ownership, maintenance,

operation or use of the vehicle. Every person, while operating or

using a motor vehicle in this state which is not owned by such

person, shall maintain in force security for the payment of loss

resulting from the liability imposed by law for bodily injury, death

or property damage sustained by any person arising out of the

operation or use of the a vehicle, unless provided such security has

been may be provided by the owner of the vehicle in accordance with

this section an owner’s policy, as defined by Section 7-600 of this

title, which does not exclude said person the operator from

coverage. Proof of such security shall be carried in the vehicle at

all times and shall be produced for inspection upon request by any

law enforcement officer or representative of the Department and, in

case of collision, such proof shall be shown upon request of any

person affected by the collision.

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2. B. The nonresident owner operator of a motor vehicle not

registered in this state may give proof of financial responsibility

by providing proof of compliance with the financial responsibility

laws of the state in which the vehicle is registered or by filing

with the Department a certificate of an insurance company authorized

to transact insurance in the state in which the vehicle is

registered, or if such nonresident does not own a motor vehicle,

then in the state in which the insured resides, provided such

certificate otherwise conforms to the provisions of this article,

and the Department shall accept the same upon condition that said

insurance company complies with the following provisions with

respect to the policy so certified:

a. the

1. The insurance company shall execute a power of attorney

authorizing the Department to accept service on its behalf or notice

of process in any action arising out of a motor vehicle accident in

this state,; and

b. the

2. The insurance company shall agree in writing that such

policies shall be deemed to conform with the laws of this state

relating to the terms of motor vehicle liability policies issued in

this state.

3. C. The provisions of this subsection section shall apply to

nonresident owners and operators of vehicles that are not registered

in this state only if the state in which the vehicle is registered

requires compulsory liability insurance. In such cases, compliance

with the requirements of the law of the state of registration shall

be deemed compliance with the laws of this state.

SECTION

. AMENDATORY 47 O.S. 2001, Section 7-601.1, is

amended to read as follows:

Section 7-601.1 A. Every carrier, upon issuing an owner's

policy authorized pursuant to Section 7-600 of this title, a renewal

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thereof, or a binder, shall supply a security verification form in

duplicate to an owner for each insured vehicle on a form approved by

the Insurance Commissioner.

1. The owner's security verification form shall contain the

following minimum information:

a. the name and address of the carrier,

b. the name and address of the agent or office where the

existence of security may be verified, if other than

the carrier,

c. the name of the named insured,

d. a notice that an owner's liability insurance policy

has been issued pursuant to the Compulsory Insurance

Law of this state,

e. the year of manufacture, make and at least the last

three (3) digits of the vehicle identification number

of each insured motor vehicle,

f. the inclusive dates the motor vehicle liability

insurance is in effect, and

g. a warning to the owner that state law:

(1) requires a current copy of the owner's security

verification form must be surrendered to the

motor license agent or other registering agency

upon application or renewal for a motor vehicle

license plate,

(2) requires the other copy of the owner's security

verification form to be carried in the motor

vehicle at all times, and produced by any driver

of the vehicle upon request for inspection by any

peace officer or representative of the Department

of Public Safety. In case of a collision, the

security verification form shall be shown upon

request of any person affected by the collision.

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The security verification form shall not include the address of the

named insured.

2. The owner's security verification form shall contain the

following statement: "Examine policy exclusions carefully. This

form does not constitute any part of your insurance policy."

3. When a carrier issues an owner's policy providing blanket

liability coverage for a fleet of motor vehicles, the year of

manufacture, make and at least the last three (3) digits of the

vehicle identification number specified in subparagraph e of

paragraph 1 of this subsection may be deleted. The security

verification form shall bear the term "Fleet Coverage" and otherwise

meet the provisions of Section 7-600 et seq. of this title.

4. In the event the effective dates within an owner's policy

exceed one (1) year, the carrier shall furnish the owner a copy of

the owner's security verification form at least annually in addition

to the time of issuance or renewal in order for the owner to submit

such copy for motor vehicle registration purposes.

5. In the event an owner's policy also provides liability

coverage which meets the requirements of an operator's policy, the

carrier may also issue to each person entitled thereto an operator's

security verification form as provided in this section.

B. Every carrier, upon issuing an operator's policy, a renewal

thereof, or a binder, may shall issue to the insured person a

written operator's security verification form forms of a size which

may conveniently be carried upon the person for as many vehicles as

the insured person operates, containing the following minimum

information:

1. The name and address of the carrier;

2. The name and address of the person or office where an

inquiry may be made to verify the existence of security;

3. The name of the named insured;

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4. A notice that in accordance with the Compulsory Insurance

Law of this state, liability coverage has been issued for the named

insured;

5. A statement reflecting the form may be carried in lieu of

an owner's form pursuant to the Compulsory Insurance Law while

operating a motor vehicle. Such that such form shall be produced

upon request of any peace officer or representative of the

Department of Public Safety. In case of a collision, the form shall

be shown upon request of a person affected by a collision with a

vehicle operated by the insured; and

6. The inclusive dates of liability coverage; and

7. A warning to the operator that state law requires that a

current copy of the security verification form of the owner of the

vehicle must be surrendered to the motor license agent or other

registering agency upon application or renewal for a motor vehicle

license plate.

C. A carrier may provide any additional information consistent

with the Compulsory Insurance Law of this state in an owner's or

operator's security verification form, but shall not be required to

list the actual amounts of liability coverage thereon. The security

verification form shall not constitute nor be construed as any part

of an insurance policy, renewal or binder.

SECTION

. AMENDATORY 47 O.S. 2001, Section 7-602, is

amended to read as follows:

Section 7-602. A. 1. The owner operator of a motor vehicle

registered in this state shall carry in such vehicle at all times a

current owner's security verification form listing the vehicle or an

equivalent form which has been issued by the Department of Public

Safety and shall produce such form upon request for inspection by

any law enforcement officer or representative of the Department and,

in case of a collision, the form shall be shown upon request to any

person affected by the collision.

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2. Every person registering a motor vehicle in this state,

except a motor vehicle which is not being used upon the public

highways or public streets, or a manufactured home while on a

permanent foundation, at the time of registration of such vehicle,

shall certify the existence of security with respect to such vehicle

by surrendering to a motor license agent or other registering agency

a current owner's security verification form or an equivalent form

issued by the Department. A motor license agent or other

registering agency shall require the surrender of such form prior to

processing an application for registration or renewal.

3. Fleet vehicles operating under the authority of the

Corporation Commission, the Federal Highway Administration, or

vehicles registered pursuant to the provisions of Section 1120 of

this title, shall certify the existence of security with respect to

such vehicle at the time of registration by submitting one of the

following:

a. a current owner’s security verification form verifying

the existence of security as required by Section 7-600

et seq. of this title, or

b. a permit number verified by the Oklahoma Tax

Commission indicating the existence of a current

liability insurance policy. Provided, in the event

the Tax Commission is unable to verify the existence

of such insurance as provided herein in a prompt and

timely fashion, the Tax Commission may accept a

current single state registration form issued by the

Corporation Commission or any other regulating entity

with which the Corporation Commission has entered into

a reciprocal compact or agreement regarding the

regulation of motor vehicles engaged in interstate or

foreign commerce upon and over the public highways.

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4. The following shall not be required to carry an owner's or

operator's security verification form or an equivalent form from the

Department during operation of the vehicle and shall not be required

to surrender such form for vehicle registration purposes:

a. any vehicle owned or leased by the federal or state

government, or any agency or political subdivision

thereof,

b. any vehicle bearing the name, symbol, or logo of a

business, corporation or utility on the exterior and

which is in compliance with the provisions of Sections

7-600 through 7-610 of this title according to records

of the Department of Public Safety which reflect a

deposit, bond, self-insurance, or fleet policy,

c. fleet vehicles maintaining current vehicle liability

insurance as required by the Corporation Commission or

any other regulating entity,

d. any licensed taxicab, and

e. any vehicle owned by a licensed used motor vehicle

dealer.

5. Any person who knowingly issues or promulgates false or

fraudulent information in connection with either an owner's or

operator's security verification form or an equivalent form which

has been issued by the Department shall be guilty of a misdemeanor

and upon conviction shall be subject to a fine not exceeding Five

Hundred Dollars ($500.00), or imprisonment for not more than six (6)

months, or by both such fine and imprisonment.

B. Each motor license agent is authorized to charge a fee of

One Dollar and fifty cents ($1.50) to each person to whom the agent

issues a certificate of registration and who is required to

surrender proof of financial responsibility pursuant to the

provisions of Sections 7-600 through 7-609 of this title. The fee

may be retained by the agent as compensation for services in

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processing the proof of financial responsibility and for processing

the driver's license information, insurance verification

information, and other additional information furnished to the agent

pursuant to Section 1112 of this title, if such agent does not

receive the maximum compensation as authorized by law.

SECTION

. AMENDATORY 47 O.S. 2001, Section 7-609, is

amended to read as follows:

Section 7-609. A. Whenever any owner operator fails to timely

furnish proof of insurance or fails to timely respond as required by

subsection D of Section 7-608 of this title, the Department of

Public Safety shall suspend the person's driving privilege and the

registration of any motor vehicle registered in the name of such

person as owner which is not covered by security. The suspension

shall be effective immediately upon the lapse of the thirty-day

response period in subsection D of Section 7-608 of this title. The

suspension shall remain in effect until payment is made of the fees

provided for in Section 6-212 of this title and proof of insurance

is presented to the Department; provided, if the person is not an

owner of any motor vehicle or is not subject to the Compulsory

Insurance Law of this state or provides proof the vehicle person was

insured prior to the suspension date, then proof of insurance and

payment of the processing and reinstatement fee shall not be

required and the Department shall vacate the suspension of the

person's driving privilege.

B. Any person whose driving privilege and registration have

been suspended pursuant to the provisions of subsection A of this

section shall surrender to the Department his or her driver license

and the license plate of any motor vehicle registered in his or her

name and not covered by security within thirty (30) days from the

date of the suspension. Any owner failing to surrender his or her

driver license or license plate or plates to the Department within

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such time shall pay a fee of Fifty Dollars ($50.00) which shall be

in addition to the fees provided for in Section 6-212 of this title.

C. Whenever any person's driving privilege or registration of

any motor vehicle is suspended pursuant to this section according to

the records of the Department, the Department may accordingly notify

any peace officer of the suspension.

D. Any peace officer who has been notified that a person's

driving privilege or registration of a motor vehicle is currently

under suspension according to the records of the Department may,

upon observing the person or motor vehicle anywhere upon a public

street, highway, roadway, turnpike, or public parking lot, within

this state, forthwith stop the person or motor vehicle and seize the

person's driver license or license plate or both.

E. No person shall have a property interest in a driver

license, vehicle registration, or vehicle license plate issued

pursuant to the laws of this state and it shall be the duty of every

person whose driving privilege or motor vehicle registration has

been suspended to forthwith surrender such driver license or license

plate or both upon the request of any peace officer or

representative of the Department.

F. Any person upon a public street, highway, roadway, turnpike,

or public parking lot, within this state, who willfully refuses to

surrender possession of a driver license or license plate after

being informed by a peace officer or representative of the

Department that his or her driving privilege or motor vehicle

registration is currently under suspension according to the records

of the Department, shall be guilty of a misdemeanor, punishable by

imprisonment in the county jail for not more than ten (10) days or a

fine not to exceed Five Hundred Dollars ($500.00) or by both such

fine and imprisonment.

G. Any driver license or license plate surrendered to or seized

by a peace officer pursuant to this section shall be submitted to a

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representative of the Department in a manner and with a form or

method approved by the Department.

H. The Department shall deposit fees collected pursuant to

subsection B of this section in a special account of the Department

maintained with the office of the State Treasurer. The State

Treasurer shall credit these fees to this special account to be

distributed as hereinafter provided.

I. The Department shall identify the name of the employing law

enforcement agency from which a suspended driver license or license

plate has been received pursuant to this section, and determine that

the fee required by subsection B of this section has been paid. The

Department shall reimburse the law enforcement agency so identified

the sum of Twenty-five Dollars ($25.00) for each driver license and

the sum of Twenty-five Dollars ($25.00) for each vehicle license

plate from the special account.

J. Any unencumbered monies remaining in the special account at

the close of each calendar month shall be transferred by the

Department to the General Revenue Fund of the State Treasury.

K. The State of Oklahoma, the departments and agencies thereof,

including the Department of Public Safety, all political

subdivisions, and the officers and employees of each, shall not be

held legally liable in any suit in law or in equity for any

erroneous entry of a suspension upon the records of the Department,

nor for the enforcement of the provisions of the Compulsory

Insurance Law, Section 7-600 et seq. of this title, performed in

good faith.

SECTION

. This act shall become effective November 1, 2003.

49-1-6134 SD 01/23/03