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Web posted Thursday, March 20, 2008

HOUSE PASSES BILL CORRECTING LOOPHOLE IN DMV INSURANCE NOTICES

By Bradners’ Alaska Legislative Digest

The state House unanimously passed House Bill 331 March 19, changing a state law regarding auto insurance notices and fines.


State statutes now require drivers involved in an accident to file a form indicating that they have insurance. If the form is not filed, drivers can lose their licenses.


“Many drivers incorrectly assume that when they show proof of insurance at the scene of an accident the subsequent paperwork is unnecessary,” said bill sponsor Rep. Bob Roses, R-Anchorage. “Unfortunately, when the Division of Motor Insurance sends a notice to the person informing them that this is necessary, it gets sent to the wrong address, resulting in their license getting suspended.”


House Bill 331 requires the DMV to send the letter to the most current address, if it is in the DMV database or on the accident report, Roses said.


The bill also raises the penalty for driving without insurance to a Class B misdemeanor with a minimum $500 fine. Drivers without insurance currently get their licenses suspended for 90 days. House Bill 331 has now been sent to the state Senate.


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