GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 241*

Short Title:  Proof of Insurance/Drivers License.	(Public)
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Sponsors: Representatives Beard, Anderson, Hasty, James, Payne; Bowman, Ligon, Flaherty, Warner, and Decker.
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Referred to:  Commerce.
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February 16, 1989

A BILL TO BE ENTITLED
AN ACT TO AMEND THE PROOF OF FINANCIAL RESPONSIBILITY REQUIREMENTS FOR OBTAINING DRIVERS LICENSES AND LIMITED DRIVING PRIVILEGES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 20-7(c1) reads as rewritten:
	"(c1)  In addition to the other requirements of this section, no person shall be issued a driver's license until such person has furnished proof that he is financially responsible.  Proof of financial responsibility shall be in the form of a written certificate of any insurance carrier duly authorized to do business in this State certifying that there is in effect a nonfleet private passenger motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility.  The certificate shall state the effective date and expiration date of the nonfleet private passenger motor vehicle liability policy and shall state the date that the certificate is issued.  The certificate shall remain effective proof of financial responsibility for a period of 30 consecutive days following the date the certificate is issued but shall not in and of itself constitute a binder or policy of insurance.  After the Division accepts the certificate as effective proof of an applicant's financial responsibility and issues a drivers license to the applicant, the Division shall retain the certificate until the expiration of the drivers license.
	If the applicant's insurer is authorized to do business in this State but does not have an agent resident in this State, the applicant may show proof of financial responsibility by producing a binder for or policy of nonfleet private passenger motor vehicle liability insurance, under which the applicant is insured.  If the applicant is the registered owner of a motor vehicle in this State, the applicant may show proof of financial responsibility by producing the registration certificate issued by the Division.
The preceding provisions of this subsection do not apply to applicants who do not own motor vehicles and who do not operate nonfleet private passenger motor vehicles that are owned by other persons and that are not insured under commercial motor vehicle liability insurance policies.  In such cases, the applicant shall sign a written certificate to that effect.  Such certificate shall be furnished by the Division and may be incorporated into the license application form.  Any material misrepresentation made by such person on such certificate shall be grounds for suspension of that person's license for a period of 90 days.
For the purpose of this subsection, the term ‘nonfleet private passenger motor vehicle' has the definition ascribed to it in Article 13C of General Statute Chapter 58.
The Commissioner may require that certificates required by this subsection be on a form approved by the Commissioner.
Nothing in this subsection precludes any person from showing proof of financial responsibility in any other manner authorized by Articles 9A and 13 of this Chapter."
¨Sec. 2.  G.S 20-7(f) reads as rewritten:
	"(f) The drivers' licenses issued under this section shall automatically expire on the birthday of the licensee in the fourth year following the year of issuance; and no new license shall be issued to any operator after the expiration of his license until such  operator has again passed the examination specified in this section. Any operator may at any time within 60 days prior to the expiration of his license apply for a new license and if the applicant meets the requirements of this Article, the Division shall issue a new license to him.  A new license issued within 60 days prior to the expiration of an applicant's old license or within 12 months thereafter shall automatically expire four years from the date of the expiration of the applicant's old license.
Any person serving in the armed forces of the United States on active duty and holding a valid driver's license properly issued under this section and stationed outside the State of North Carolina may renew his license by making application to the Division by mail.  Any other person, except a nonresident as defined in this Article, who holds a valid driver's license issued under this section and who is temporarily residing outside North Carolina, may also renew by making application to the Division by mail.  For purposes of this section ‘temporarily' shall mean not less than 30 days continuous absence from North Carolina.  In either case, the Division may waive the examination and color photograph ordinarily required for the renewal of a driver's license, and may impose in lieu thereof such conditions as it may deem appropriate to each particular application; provided that such license shall expire 30 days after licensee returns to North Carolina, and such license shall be designated as temporary.
Provided further, that no person who applies for the renewal of his driver's license shall be required to take a written examination or road test as a part of any such examination unless such person has been convicted of a traffic violation or had prayer for judgment continued with respect to any traffic violation within a four-year period immediately preceding the date of such person's renewal application or unless such person suffers from a mental or physical condition which impairs his ability to operate a motor vehicle.
Provided further, that no person who applies for the renewal of his driver's license and who must take the written examination pursuant to this section shall be issued a renewed license unless such person has furnished proof that he is financially responsible.  Proof of financial responsibility shall be in the form of a written certificate of any insurance carrier duly authorized to do business in this State certifying that there is in effect a nonfleet private passenger motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility.  The certificate shall state the effective date and expiration date of the nonfleet private passenger motor vehicle liability policy and shall state the date that the certificate is issued.  The certificate shall remain effective proof of financial responsibility for a period of 30 consecutive days following the date the certificate is issued but shall not in and of itself constitute a binder or policy of insurance.  After the Division accepts the certificate as effective proof of an applicant's financial responsibility and renews the applicant's drivers license, the Division shall retain the certificate until the expiration of the drivers license.
If the applicant's insurer is authorized to do business in this State but does not have an agent resident in this State, the applicant may show proof of financial responsibility by producing a binder for or policy of nonfleet private passenger motor vehicle liability insurance, under which the applicant is insured.  If the applicant is the registered owner of a motor vehicle in this State, the applicant may show proof of financial responsibility by producing the registration certificate issued by the Division.
The provisions of the preceding paragraph do not apply to applicants who do not own motor vehicles and who do not operate nonfleet private passenger motor vehicles that are owned by other persons and that are not insured under commercial motor vehicle liability insurance policies.  In such cases, the applicant shall sign a written certificate to that effect.  Such certificate shall be furnished by the Division and may be incorporated into the license application form.  Any material misrepresentation made by such person on such certificate shall be grounds for suspension of that person's license for a period of 90 days.
For the purpose of this subsection, the term ‘nonfleet private passenger motor vehicle' has the definition ascribed to it in Article 13C of General Statute Chapter 58.
	The Commissioner may require that certificates required by this subsection be on a form approved by the Commissioner.
Nothing in this subsection precludes any person from showing proof of financial responsibility in any other manner authorized by Articles 9A and 13 of this Chapter.”
Sec. 3.  G.S. 20-13.2(e) reads as rewritten:
	"(e) Before the Division restores a driver's license that has been suspended or revoked under any provision of this Article, the person seeking to have his driver's license restored shall submit to the Division proof that he has notified his insurance agent or company of his seeking the restoration and that he is financially responsible.  Proof of financial responsibility shall be in the form of a written certificate of any insurance carrier duly authorized to do business in this State certifying that there is in effect a nonfleet private passenger motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility.  The certificate shall state the effective date and expiration date of the nonfleet private passenger motor vehicle liability policy and shall state the date that the certificate is issued.  The certificate shall remain effective proof of financial responsibility for a period of 30 consecutive days following the date the certificate is issued but shall not in and of itself constitute a binder or policy of insurance.  After the Division accepts the certificate as effective proof of an applicant's financial responsibility and restores the applicant's drivers license, the Division shall retain the certificate until the expiration of the drivers license.
If the applicant's insurer is authorized to do business in this State but does not have an agent resident in this State, the applicant may show proof of financial responsibility by producing a binder for or policy of nonfleet private passenger motor vehicle liabililty insurance, in which the applicant is a named insured.  If the applicant is the registered owner of a motor vehicle in this State, the applicant may show proof of financial responsibility by producing the registration certificate issued by the Division.
The preceding provisions of this subsection do not apply to applicants who do not own motor vehicles and who do not operate nonfleet private passenger motor vehicles that are owned by other persons and that are not insured under commercial motor vehicle liability insurance policies.  In such cases, the applicant shall sign a written certificate to that effect.  Such certificate shall be furnished by the Division and may be incorporated into the restoration application form.  Any material misrepresentation made by such person on such certificate shall be grounds for suspension of that person's license for a period of 90 days.
For the purposes of this subsection, the term ‘nonfleet private passenger motor vehicle' has the definition ascribed to it in Article 13C of General Statute Chapter 58.
The Commissioner may require that certificates required by this subsection be on a form approved by the Commissioner.  The financial responsibility required by this subsection shall be kept in effect for not less than three years after the date that the license is restored.  Failure to maintain financial responsibility as required by this subsection shall be grounds for suspending the restored driver's license for a period of thirty (30)	days.  Nothing in this subsection precludes any person from showing proof of financial responsibility in any other manner authorized by Articles 9A and 13 of this Chapter."
Sec. 4.  G.S. 20-16.1(g) reads as rewritten:
	"(g) Any judge granting limited driving privileges under this section shall, prior to granting such privileges, be furnished proof and be satisfied that the person being granted such privileges is financially responsible.  Proof of financial responsibility shall be in the form of a written certificate of any insurance carrier duly authorized to do business in this State certifying that there is in effect a nonfleet private passenger motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility.  The certificate shall state the effective date and expiration date of the nonfleet private passenger motor vehicle liability policy and shall state the date that the certificate is issued.  The certificate shall remain effective proof of financial responsibility for a period of 30 consecutive days following the date the certificate is issued but shall not in and of itself constitute a binder or policy of insurance.
If the applicant's insurer is authorized to do business in this State but does not have an agent resident in this State, the applicant may show proof of financial responsibility by producing a binder for or policy of nonfleet private passenger motor vehicle liability insurance, in which the applicant is a named insured.  If the applicant is the registered owner of a motor vehicle in this State, the applicant may show proof of financial responsibility by producing the registration certificate issued by the Division.
The preceding provisions of this subsection do not apply to applicants who do not own motor vehicles and who do not operate nonfleet private passenger motor vehicles that are owned by other persons and and that are not insured under commercial motor vehicle liability insurance policies.  In such cases, the applicant shall sign a written certificate to that effect.  Such certificate shall be furnished by the Division.  Any material misrepresentation made by such person on such certificate shall be grounds for suspension of that person's license for a period of 90 days.
For the purpose of this subsection ‘nonfleet private passenger motor vehicle' has the definition ascribed to it in Article 13C of General Statute Chapter 58.
The Commissioner may require that certificates required by this subsection be on a form approved by the Commissioner.  Such granting of limited driving privileges shall be conditioned upon the maintenance of such financial responsibility during the period of the limited driving privilege.  Nothing in this subsection precludes any person from showing proof of financial responsibility in any other manner authorized by Articles 9A and 13 of this Chapter.” 
Sec. 5.  G.S. 20-19(k) reads as rewritten:
	"(k) Before the Division restores a driver's license that has been suspended or revoked under any provision of this Article, the person seeking to have his driver's license restored shall submit to the Division proof that he has notified his insurance agent or company of his seeking the restoration and that he is financially responsible.  Proof of financial responsibility shall be in the form of a written certificate of any insurance carrier duly authorized to do business in this State certifying that there is in effect a nonfleet private passenger motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility.  The certificate shall state the effective date and expiration date of the nonfleet private passenger motor vehicle liability policy and shall state the date that the certificate is issued. The certificate shall remain effective proof of financial responsibility for a period of 30 consecutive days following the date the certificate is issued but shall not in and of itself constitute a binder or policy of insurance.  After the Division accepts the certificate as effective proof of an applicant's financial responsibility and restores the applicant's drivers license, the Division shall retain the certificate until the expiration of the drivers license.
If the applicant's insurer is authorized to do business in this State but does not have an agent resident in this State, the applicant may show proof of financial responsibility by producing a binder for or policy of nonfleet private passenger motor vehicle liability insurance, in which the applicant is a named insured.  If the applicant is the registered owner of a motor vehicle in this State, the applicant may show proof of financial responsibility by producing the registration certificate issued by the Division.
The preceding provisions of this subsection do not apply to applicants who do not own motor vehicles and who do not operate nonfleet private passenger motor vehicles that are owned by other persons and that are not insured under commercial motor vehicle liability insurance policies.  In such cases, the applicant shall sign a written certificate to that effect.  Such certificate shall be furnished by the Division and may be incorporated into the restoration application form.  Any material misrepresentation made by such person on such certificate shall be grounds for suspension of that person's license for a period of 90 days.
For the purposes of this subsection, the term ‘nonfleet private passenger motor vehicle' has the definition ascribed to it in Article 13C of General Statute Chapter 58.
The Commissioner may require that certificates required by this subsection be on a form approved by the Commissioner.  The financial responsibility required by this subsection shall be kept in effect for not less than three years after the date that the license is restored.  Failure to maintain financial responsibility as required by this subsection shall be grounds for suspending the restored driver's license for a period of thirty (30)	days.  Nothing in this subsection precludes any person from showing proof of financial responsibility in any other manner authorized by Articles 9A and 13 of this Chapter.”
Sec. 6.  G.S. 20-179.3(l) reads as rewritten:
	"(l) Any judge granting limited driving privileges under this section shall, prior to granting such privileges, be furnished proof and be satisfied that the person being granted such privileges is financially responsible.  Proof of financial responsibility shall be in the form of a written certificate of any insurance carrier duly authorized to do business in this State certifying that there is in effect a nonfleet private passenger motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility. The certificate shall state the effective date and expiration date of the nonfleet private passenger motor vehicle liability policy and shall state the date that the certificate is issued.  The certificate shall remain effective proof of financial responsibility for a period of 30 consecutive days following the date the certificate is issued but shall not in and of itself constitute a binder or policy of insurance.
If the applicant's insurer is authorized to do business in this State but does not have an agent resident in this State, the applicant may show proof of financial responsibility by producing a binder for or policy of nonfleet private passenger motor vehicle liability insurance, in which the applicant is a named insured.  If the applicant is the registered owner of a motor vehicle in this State, the applicant may show proof of financial responsibility by producing the registration certificate issued by the Division.
The preceding provisions of this subsection do not apply to applicants who do not own motor vehicles and who do not operate nonfleet private passenger motor vehicles that are owned by other persons and that are not insured under commercial motor vehicle liability insurance policies.  In such cases, the applicant shall sign a written certificate to that effect.  Such certificate shall be furnished by the Division.  Any material misrepresentation made by such person on such certificate shall be grounds for suspension of that person's license for a period of 90 days.
For the purpose of this subsection ‘nonfleet private passenger motor vehicle' has the definition ascribed to it in Article 13C of General Statute Chapter 58.
The Commissioner may require that certificates required by this subsection be on a form approved by the Commissioner.  Such granting of limited driving privileges shall be conditioned upon the maintenance of such financial responsibility during the period of the limited driving privilege.  Nothing in this subsection precludes any person from showing proof of financial responsibility in any other manner authorized by Articles 9A and 13 of this Chapter.”
Sec. 7.  This act is effective upon ratification.