MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Insurance

By: Representatives Warren, Stringer

AN ACT TO REQUIRE COMPULSORY MOTOR VEHICLE LIABILITY INSURANCE OR OTHER SECURITY FOR EVERY SELF-PROPELLED MOTOR VEHICLE REGISTERED IN THIS STATE; TO PROVIDE EXCEPTIONS; TO PROVIDE FORMS OF SECURITY; TO PROVIDE THAT PERSONS APPLYING FOR A DRIVER'S LICENSE SHALL PROVIDE PROOF OF COMPLIANCE; TO PROVIDE PENALTIES FOR NONCOMPLIANCE BY REVOKING THE REGISTRATION OF THE VEHICLE OR IMPOUNDING OR CANCELING THE VEHICLE'S LICENSE PLATE; TO PROVIDE REINSTATEMENT FEES; TO PROVIDE NOTICE AND HEARING REQUIREMENTS; TO REQUIRE LAW ENFORCEMENT OFFICERS, WHEN STOPPING A VEHICLE TO DETERMINE IF THE OWNER OR LESSEE OF THE VEHICLE IS IN COMPLIANCE AND TO PROVIDE THAT THE VEHICLE SHALL BE IMPOUNDED IF THE OPERATOR IS UNABLE TO SHOW COMPLIANCE; TO REQUIRE SECURITY PROVIDERS TO NOTIFY THE COMMISSIONER OF PUBLIC SAFETY WHEN SUCH SECURITY IS TERMINATED; TO RESTRICT RECOVERY FOR PERSONS INJURED IN MOTOR VEHICLE ACCIDENTS WHO ARE NOT IN COMPLIANCE WITH THIS ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) Every self-propelled motor vehicle registered in this state except those motor vehicles used as agricultural or forest vehicles during seasons when they are not used on the highway, those used primarily for exhibit or kept primarily for use in parades, exhibits or shows and lease-bound mobile rig haulers as defined in this section shall be covered by an automobile liability policy with liability limits, or a binder for same, or by a motor vehicle liability bond or by a certificate of the State Treasurer, stating that cash or securities have been deposited with the Treasurer or by a certificate of self-insurance, as provided by Section 63-15-37.

(2) It shall be the duty of the registered owner of a motor vehicle to maintain the security required herein. Failure to maintain the security shall subject the registered owner to the sanctions hereinafter provided.

(3) "Lease-bound mobile rig hauler" as used in this section means a winch or crew truck in excess of twenty-six thousand (26,000) pounds which meets the following description:

(a) The hauler is operated on the highways of Mississippi only for the purpose of hauling mobile workover rigs or any accessories for a mobile workover rig within a ten-mile radius of the operator's oil and gas lease.

(b) The haulers are covered under a general liability policy, issued by an insurance company authorized to do business in the state, with liability coverage and limits equal to or greater than those defined in Section 63-15-3.

SECTION 2. (1) The Commissioner of Public Safety, hereinafter "commissioner" shall adopt rules to implement the provisions of this section. The rules shall provide that documentation of insurance or other security shall be required for proof of compliance. The rules shall require that the original or a copy of one (1) of the following documents be produced as documentation of insurance: an insurance card; an insurance policy; or the declarations page of the insurance policy showing coverages. The rules shall require insurance and security companies to issue cards or similar documents which indicate the existence of insurance or security coverage, may establish the form for the cards or similar documents and may establish the form for the written declarations required by this section.

(2) The provisions of this section with regard to the documentation of insurance requirements shall not apply to new and used automobile dealers as defined by law. However, the rules shall provide for the use of affidavits to prove compliance when registration is sought by a licensed new or used motor vehicle dealer on behalf of a customer.

(3) The provisions of this subsection shall not apply to renewals of registration by mail.

(4) Each person who applies for the registration of a motor vehicle, or who applies for the renewal of a registration of a motor vehicle, or who applies for a motor vehicle inspection certificate shall provide proof of compliance and shall declare in writing that the applicant shall remain in compliance during the time for which the registration, the renewal of registration, or the certificate is issued.

(5) Each adult person who applies for a driver's license shall"

(a) Provide proof of compliance and declare in writing that the applicant shall remain in compliance during the time for which the license is issued; or

(b) Declare in writing that the applicant does not own a motor vehicle which is currently registered or licensed in this state or any other state or in any territory.

(6) When a minor person applies for a driver's license, the parent or guardian who has custody of the minor applicant shall:

(a) Provide proof of compliance for both the minor applicant and the parent or guardian, and declare in writing that the minor applicant and the parent or guardian shall remain in compliance during the time for which the license is issued; or

(b) Declare in writing that the parent or guardian does not own a motor vehicle which is currently registered or licensed in this state or in any other state or in any territory.

(7) As used in subsections (5) and (6) of this section, an application for a driver's license includes an initial application, an application for renewal and an application for reissue to change the address of the applicant, to change any other information concerning the applicant or to change the endorsements held by the applicant.

(8) The prohibited actions and penalties for violations thereof are as follows:

(a) No person shall provide false or fraudulent information or documents or make false or fraudulent representations in connection with any application for the registration of a motor vehicle or for a renewal of a registration of a motor vehicle or for a motor vehicle inspection certificate or for a driver's license.

(b) No person shall make a false declaration or execute a false affidavit in response to the requirements of this section.

(c) No person shall alter or counterfeit any card or similar document used to show proof of compliance.

(d) Whoever violates the provisions of this subsection shall be fined not more than One Thousand Dollars ($1,000.00) and shall be required to perform not less than forty (40) hours nor more than two hundred (200) hours of community service.

(e) When the commissioner finds that any person has violated the provisions of this subsection, the commissioner may suspend, revoke or cancel the driver's license held by the offender and may suspend, revoke or cancel the registration of each motor vehicle owned by the offender.

(9) No action taken by any person, whether private citizen or public officer or employee, with regard to any license, registration or inspection certificate, or with regard to any document which indicates compliance with this section, shall create a presumption of the existence of insurance coverage or be construed by any court as a warranty of the reliability or accuracy of the document or create any liability on the part of the state, or on the part of any department, office or agency of the state, or on the part of any officer, employee or agent of the state.

SECTION 3. (1) Except as provided herein, when the commissioner determines that a vehicle is not covered by security as required by this act or that the owner or lessee has allowed the required security to lapse, he shall revoke the registration of the vehicle, impound or cancel the vehicle's license plate.

(2) Should the commissioner determine that any person, whether in his application for registration of a motor vehicle or in his application for a motor vehicle inspection or otherwise has submitted false information that the motor vehicle was covered by the security required by this act, the commissioner shall impose upon the owner or owner's lessee the sanctions set forth herein.

(3) In the case of a first violation, sanctions shall be imposed for a period of three (3) days. In the case of a second or subsequent violation, sanctions shall be imposed for a period of not less than thirty (30) days nor more than twelve (12) months. In no event shall these sanctions be removed until such time as proof of the required security is provided along with all appropriate fees required by law, including a reinstatement fee of Twenty-five Dollars ($25.00) for a first violation, One Hundred Dollars ($100.00) for a second violation, and Two Hundred Dollars ($200.00) for a third or subsequent violation, provided the offenses occurred within a five-year period. The reinstatement fee shall not be owed for an alleged violation when proof of the required security is provided. The first offense occurring after five (5) years from the prior first offense shall be deemed to be a first offense.

(4) Fees shall be paid to the Department of Safety, who shall remit them to the State Treasurer to be credited to the State General Fund.

(5) The sanctions shall not be imposed, and any fine, fee or other monetary sanction which has been remitted shall be promptly refunded to the person who paid it, if the owner or lessee furnishes:

(a) An original or photocopy of a Mississippi auto insurance identification card showing that the required security is in effect on the vehicle and has been continuous without lapse or an original or photocopy of any written communication from an insurer to the insured stating that the required security is in effect on the vehicle and has been continuous without lapse, any one of which shall constitute sufficient evidence that the required security on the vehicle has not lapsed; or

(b) If such evidence is not furnished by the owner or lessee, any other evidence satisfactory to the secretary, that:

(i) The vehicle was at the time in question in fact covered by the required security or else has newly been covered by security as required herein within ten (10) days of the initiation of termination or cancellation of previous security; and

(ii) The vehicle is currently covered by security as required by law; and

(iii) The vehicle was not involved in an accident during the period when it was not covered by security.

(c) If the person applies for a registration during the same period for which the surrendered plate would have been valid, credit shall be applied toward the purchase of a new plate. The credit shall be equal to the amount paid for the most recent registration of the motor vehicle multiplies by as fraction, the numerator of which is the unused months of registration and the denominator of which is the number of months for which registration was issued.

(6) (a) When the commissioner seeks to impose the sanctions required in this section, he shall send written notice to the owner, lessee or other person against whom sanctions are intended at the last address furnished to the department. A notice of noncompliance, issued by a law enforcement officer shall serve as notice to the owner, lessee or other person. Before imposition of such sanctions, a hearing may be requested within ten (10) days from the date of notice. Sanctions shall not be imposed until all rights for appeal have expired or been exhausted.

(b) At the hearing, the commissioner shall consider the correctness of his initial determination with regard to petitioner's violation of this section. Should the commissioner find that his initial determination with regard to such a violation was correct, the suspension and revocation ordered by him shall be maintained and given effect. The commissioner shall rescind an ordered revocation and suspension only if he finds that petitioner violated no provision of this section, and that the initial determination made by the commissioner was incorrect.

(c) If revocation and suspension is proper, upon a showing of proof satisfactory to the commissioner that a person's livelihood requires the use of a motor vehicle for purposes other than transportation to and from the workplace, that use of such motor vehicle is an integral and inseparable aspect of his job and that suspension of driving privileges would thereby prevent the earning of a livelihood; the commissioner may, after revocation of the registration of the vehicle, suspension of the driving privileges and after confiscating the driver's license and license plates of such persons, issue to first offenders a special operator's permit, appropriately identified as such, which would authorized the holder to drive a vehicle belonging to his employer, and only in the regular course of his duties, provided that:

(i) The licensee shall be permitted to operate his employer's vehicle only within the geographic area identified in the special permit required for the earning of a livelihood;

(ii) Such operation shall be restricted to regular hours of employment, which hours shall be indicated on the special permit; and

(iii) Required security is demonstrated covering both the vehicle and the driver, and proof of such security is kept with operator and vehicle during operation.

A violation of the restrictions of the special permit or a subsequent determination of noncompliance with any provision of this section by the commissioner during the term of the restricted license shall result in the extension of the period of revocation and suspension for one (1) year from the date upon which the licensee would otherwise have been able to apply for a new license.

(d) Within ten (10) days after a person has exhausted his remedies with the commissioner, he shall have the right to file a petition in the district court in the county of his domicile for review of the final order of revocation and suspension. The court may exercise any action it deems appropriate.

(e) The department may promulgate rules and regulations necessary to offset the administrative cost of this section not to exceed Twenty-five Dollars ($25.00).

(7) (a) When the driving privileges or vehicle registration of a person are suspended or revoked under this section, his driving privileges shall remain suspended and his vehicle registration shall remain revoked, and no driving privileges, including a special operator's permit as provided in subsection (6) of this section, shall be issued or motor vehicle registered to that person unless the person files proof of future financial responsibility on Form SR22 accompanied by a fee of Twenty-five Dollars ($25.00) with the commissioner with respect to the motor vehicles registered in his name. There shall be no filing fee required if the vehicle owner shows that he had, and presently has, liability insurance as provided by this act, or if he shows that there was a lapse in liability insurance for a period not in excess of ten (10) calendar days.

(b) Such proof of future financial responsibility shall be maintained for three (3) years after the date of filing.

(8) When sanctions have been imposed under this section, no driving privileges, including a special operator's permit as provided in subsection (6) of this section shall be issued, nor shall that vehicle be registered to any person, unless the person pays all fees required by this section.

SECTION 4. (1) No owner or lessee of a self-propelled motor vehicle registered in this state, except a motor vehicle used primarily for exhibit or kept primarily for use in parades, exhibits or shows, or agricultural or forest use vehicles during seasons when they are not used on the highways, shall operate or allow the operation of such vehicle upon any public road, street or highway in this state unless there is contained within the vehicle one of the following documents evidencing that the motor vehicle is in compliance with compulsory motor vehicle liability security:

(a) A certificate of insurance. "Certificate" means the written evidence of motor vehicle liability insurance that is in the form of one of the following:

(i) An identification card issued by an insurer to its insured which shall contain the following information:

The name and address of the insurance company;

The insurance policy number;

A description of the motor vehicle insured under the policy;

The effective date and the expiration date of the policy; and

The name of any person who is excluded from coverage.

(ii) A motor vehicle liability insurance policy or a duplicate original thereof.

(iii) A motor vehicle liability insurance policy binder or a duplicate original thereof.

(b) A duplicate original of a motor vehicle liability bond which complies with the requirements for a motor vehicle liability bond set forth in Section 63-15-49.

(c) A certificate of the State Treasurer stating that cash or securities have been deposited with the Treasurer as provided for under Section 63-15-51.

(d) A certificate of self-insurance issued under Section 63-15-53.

(2) When a law enforcement officer stops a vehicle at an administrative violations checkpoint, or in connection with an alleged violation of the law, or for any other reason, or when a law enforcement officer investigates an accident, the law enforcement officer shall determine if the owner or lessee of each vehicle is in compliance with the provisions of this section which require evidence of liability insurance or other security to be contained in the vehicle. If the owner or lessee is not in compliance with those provisions, the law enforcement officer shall take the actions specified in this section.

(3) (a) If the operator of a motor vehicle is unable to show compliance with this section by displaying the required document when requested to do so, the motor vehicle shall be impounded and the operator shall be issued a notice of noncompliance on a form to be provided by the department. A copy of the notice of noncompliance shall be provided to the towing or storage company and a copy shall be forwarded to the Department of Public Safety within three (3) calendar days after the notice of noncompliance was served. The notice of noncompliance shall serve as notice of administrative hearings rights. In addition, the law enforcement officer shall remove the license plate from the vehicle. The law enforcement officer shall deliver the vehicle license plate to the chief of the agency which employs the officer, or to a person in that agency designated to receive such license plates. In those cases in which a motor vehicle is not impounded, a copy of the notice of noncompliance shall be attached to the vehicle license plate and both shall be delivered to the Department of Public Safety within three (3) calendar days after the notice of noncompliance was served.

(b) The owner of the vehicle shall have three (3) calendar days, excluding Saturdays, Sundays and legal holidays, from the date that the notice of noncompliance was issued to present to the Department of Public Safety proof of insurance coverage or security in effect at the time of the issuance of the notice of noncompliance. If the vehicle was properly insured at the time the notice was issued, any valid license plate shall be returned within forty-eight (48) hours, exclusive of legal holidays, to the owner of the vehicle at no cost to the owner. However, if the owner fails to provide proof of the fact that the vehicle was properly insured at the time the notice of noncompliance was issued, the Department of Public Safety shall destroy, or shall cause to be destroyed, the license plate removed from that owner's vehicle.

(c) For a first offense there shall be a reinstatement fee of Fifty Dollars ($50.00), for a second offense there shall be a reinstatement fee of One Hundred Fifty Dollars ($150.00), and for any subsequent offense there shall be a reinstatement fee of Five Hundred Dollars ($500.00). The reinstatement fee contained herein shall be in addition to other appropriate registration fees allowed by law and reinstatement shall depend upon proof of compliance with the compulsory liability law.

(d) In those cases in which the motor vehicle is not impounded, any law enforcement officer who removes and takes a license plate pursuant to the provisions of this section shall issue for attachment to the rear end of the vehicle, a temporary sticker denoting its use in lieu of an official license plate. The sticker shall bear the date upon which it was issued in written or stamped numerals or letters not less than three (3) inches in height. This temporary sticker shall only be effective for a period of three (3) calendar days beginning from the day on which the license plate is taken.

(e) The temporary stickers required by this section shall be designed and produced by the Department of Public Safety, and the department shall supply such stickers, at no cost, to all law enforcement agencies authorized by law to enforce traffic laws.

(f) The Department of Public Safety shall formulate and promulgate rules and regulations for the implementation of the provisions of this section. To this end, no license shall be taken or destroyed pursuant to the authority granted in this section until such rules are properly promulgated in accordance with law. However, this limitation shall not be construed so as to otherwise limit the enforcement of laws relative to operating a vehicle without proper insurance or security.

(g) The administrative hearing shall be limited to review of the issue of whether the vehicle was covered by a valid policy of insurance at the time of the alleged violation. The records of the department on the particular violation shall be prima facie proof of the violation, and the owner or operator shall have the burden of proving that the vehicle was covered by a valid policy of insurance or was self-insured pursuant to this act at the time of the violation. The owner or operator may subpoena any witness to appear at the hearing, including the officer issuing the violation, to establish that the owner or operator was in compliance with the law at the time of the alleged violation. A request for a hearing shall not stay the sanctions required by this act. If it is determined at the administrative hearing that the vehicle was covered by a valid policy of insurance or was self-insured pursuant to this act at the time of the violation, but that such proof was not presented to the law enforcement officer at the time the vehicle was impounded, then the vehicle owner shall be required to pay the storage and wrecker fees of the person or company who impounded and towed the subject vehicle.

(h) The department or other agency that conducts the hearings shall promulgate such rules and regulations as are necessary to implement the requirements of this section. No court shall issue an injunction, stay or other process preventing the enforcement of the sanctions required by this act pending the hearing provided for in this act.

(i) The impounded vehicle shall remain impounded and the registration shall remain suspended until such time as proof of valid insurance is given to the Department of Public Safety. Notwithstanding any other provision of law to the contrary, in no event shall a car be released from impoundment until such time as proof, in writing, has been presented from the Department of Public Safety that all penalties, fees, fines and requirements of this section have been met.

(j) In those instances when there is a passenger in the motor vehicle under the age of twelve (12) or when the driver or a passenger in the motor vehicle is handicapped or when considering the location and the time of day of the stop, the law enforcement officer perceives that there would be a threat to the public safety or to the occupants in the motor vehicle, such law enforcement officer enforcing the provision of this section may in lieu of the impoundment provisions of this section, seize the license plate and issue a temporary sticker valid for three (3) calendar days. Upon expiration of the sticker, the vehicle shall not be driven until the owner has complied with the requirements of this section. In the event the vehicle is being driven after the expiration of the temporary sticker provided for herein, the vehicle shall be immediately impounded pursuant to the provisions of this section.

(4) Before reinstatement of registration and license plate privileges to any individual who cannot prove the required insurance coverage or security in effect at the time of the offense within three (3) calendar days after the offense, the Department of Public Safety shall collect a reinstatement fee of Ten Dollars ($10.00) to offset the costs of administering this section. This ten-dollar fee shall be in addition to any other fines, fees or penalties owed before reinstatement of privileges.

(5) In the case where the driver is a minor child, the owner of the vehicle shall be responsible under this section. If the owner of the vehicle is the minor child, the parents of the minor child shall be jointly subject to the provisions of this section along with the minor child, unless the minor has been adjudicated, emancipated or is in the sole custody of another or only one (1) parent under the law. If the minor is in the sole custody of another or only one (1) parent under the law, the person or parent in whose sole custody the child has been placed shall be jointly responsible with the minor child under this section.

(6) The only acceptable means of proof of a valid and current policy of insurance shall be one of the following:

(a) The insurance identification card, declaration page or policy issued by the insurer.

(b) In the case of a self-insured vehicle, the certificate of self-insurance issued by the Department of Public Safety.

(c) The records of the Department of Public Safety, if such records reflect that the motor vehicle is covered by a valid and current policy of liability insurance.

(d) The law enforcement officer making the stop has a reasonable belief that the motor vehicle is covered by a valid and current policy of liability insurance.

(7) (a) Every owner or lessee of a self-propelled motor vehicle registered in another state which is involved in a traffic accident or collision in Mississippi shall provide one of the documents comparable to those listed herein evidencing that the motor vehicle is covered by a valid policy of automobile insurance. If the operator of the motor vehicle is unable to show such proof, a notice of noncompliance shall be issued.

(b) If the operator of the motor vehicle is issued a notice of noncompliance, the owner of the vehicle shall have thirty (30) working days from the date that the notice of noncompliance was issued to present proof that insurance coverage was in effect at the time of the issuance of the notice of noncompliance or proof that insurance coverage was not required by the state in which the vehicle was registered.

(c) If the owner fails to provide the proof required herein, there shall be a fine of Fifty Dollars ($50.00) for a first offense, a fine of One Hundred Fifty Dollars ($150.00) for a second offense and a fine of Five Hundred dollars ($500.00) for any subsequent offense.

SECTION 5. (1) All entities providing security in compliance with this act, hereinafter referred to as "security providers," whether admitted or nonadmitted, surplus line underwriter, insurance companies providing automobile liability policies or sales representatives or agents of surety companies issuing motor vehicle liability bonds or the State Treasurer holding deposits shall notify the commissioner of the effective dates of each liability policy, liability bond, deposit or other security within fifteen (15) business days from the date such policy, bond, deposit or other security was issued or made.

(2) All such security providers shall notify the commissioner when any policy, bond, deposit or other item of security is terminated, withdrawn, canceled, lapsed or otherwise made ineffective within fifteen (15) business days of the date the security became ineffective.

(3) Beginning January 1, 2000, the information required by this section shall be in the form required by the commissioner, who may require by regulation such information as the driver's license number of the owner or lessee of the vehicle and of the named insureds, together with the complete vehicle identification number and a description of each vehicle.

(4) If any cancellation of a motor vehicle liability policy occurs at the request of the insured, the insurer is not obligated to cancel such policy earlier than ten (10) days before receipt by the insurer of such request.

(5) If any cancellation of a motor vehicle liability insurance policy occurs as a result of the recision or other cancellation of the sale of the motor vehicle on which the policy is issued, the insurer shall notify the commissioner of the cancellation and the circumstances of the cancellation and the insured shall not be liable for any penalty or fee imposed or failure to maintain the security required by law.

(6) Upon failure of a security provider to provide the commissioner with the information required by this section, the insurance company, sales representative or agent, State Treasurer or other provider shall be assessed a fee of not more than Fifty Dollars ($50.00) per policy, bond or deposit or other security item concerning which information is not supplied.

(7) The commissioner shall keep a record of the information received from security providers concerning coverage of vehicles and persons by security, which information may be stored through automated electronic data processing means. After the department has complete vehicle liability security records, upon written request including the driver's license number for each person, the vehicle identification number for each vehicle, and the payment of a fee of Fifteen Dollars ($15.00) for each vehicle owned by a person about which inquiry is made, the commissioner shall forward to the inquiring party such vehicle and driver liability security information as is contained in the records of the department. If the department's search of its records fails to show the existence of any liability insurance or other security as of the date about which inquiry is made, an official of the department shall issue a sworn, notarized affidavit to that effect. Such an affidavit shall be prima facie evidence that on the date in question, the person or vehicle about which inquiry was made did not have in effect a policy of liability insurance or other security as required by law.

(8) Notwithstanding any provision of law to the contrary, when there is a question of fact as to the existence of liability insurance coverage on a motor vehicle, and the owner of that motor vehicle has in fact maintained that coverage without lapse, and the question results from a mistake made by an insurance company or agent, or by any other entity, the owner of the motor vehicle shall not be required to pay any reinstatement fee in connection with any actions taken based on that question of coverage. If a reinstatement fee is imposed by the state, the reinstatement fee shall be paid by the agent, company or other entity which made the mistake.

(9) Before taking any administrative action based on the receipt of a notice of cancellation of insurance or other security, the commissioner shall notify the person who is the subject of the notice at his last known driver's license address of cancellation of the receipt of that notice. The notice of receipt of a notice of cancellation shall be in writing. The person to whom the notice is addressed shall have thirty (30) days to respond to the notice. The response may be made by mail.

(10) If the person to whom the notice is addressed is able to show that the insurance or other security was canceled for a legitimate reason, the commissioner shall take no administrative action against that person. Legitimate reasons for cancellation of insurance or other security shall include but shall not be limited to the transfer of ownership of the vehicle by sale, donation, exchange, surrender to a salvage yard or other transaction. The transfer of ownership of the vehicle may be established by presenting to the commissioner a copy of the title transfer or a copy of the act of sale, donation, exchange, surrender to a salvage yard or other transaction.

11) If the original of the document presented as proof of transfer of ownership has not been notarized, the authenticity of the document may be established by an affidavit executed by the person to whom the notice is addressed in which that person recites the circumstances of the transfer of ownership of the vehicle and attests to the truthfulness and accuracy of the document presented as proof of transfer of ownership.

SECTION 6. (1) There shall be no recovery for the first Ten Thousand Dollars ($10,000.00) of bodily injury and no recovery for the first Ten Thousand dollars ($10,000.00) of property damage based on any cause or right of action arising out of a motor vehicle accident for such injury or damages occasioned by an owner or operator of a motor vehicle involved in such accident who fails to own or maintain compulsory motor vehicle liability security.

(2) For purposes of this section, the meaning of
"bodily injury" and "property damage" is governed by the applicable motor vehicle liability insurance policy or, in the event of security other than an insurance policy, the meaning of such terms is that which is commonly ascribed thereto.

(3) The limitation of recovery provisions of this section do not apply if the driver of the other vehicle:

(a) Is cited for a violation of the Implied Consent Law as a result of the accident and is subsequently convicted of or pleads nolo contendere to such offense.

(b) Intentionally causes the accident.

(c) Flees from the scene of the accident.

(d) At the time of the accident, is in furtherance of the commission of a felony offense under the law.

(4) Each person who is involved in an accident in which the other motor vehicle was not covered by compulsory motor vehicle liability security and who is found to be liable for damages to the owner or operator of the other motor vehicle may assert as an affirmative defense the limitation of recovery provisions of this section.

(5) If the owner of a motor vehicle, who fails to own or maintain compulsory motor vehicle liability security, institutes an action to recover damages in any amount, regardless of whether such owner or operator is at fault, and is awarded an amount equal to or less than the minimum amount of compulsory motor vehicle liability security, then such owner or operator shall be assessed and held liable for all court costs incurred by all parties to the action.

(6) Each person who applies for a driver's license, registers a motor vehicle or operates or owns a motor vehicle in this state is deemed to have given his consent to be subject to an governed by the provision of this section. All persons who apply for the issuance or renewal of a driver's license, motor vehicle title or motor vehicle registration shall sign a declaration on a form developed by the Department of Public Safety pursuant to rule and regulation that the person acknowledges and gives consent to the requirements and provisions of this section and that the person shall comply with all provisions of this section and the Motor Vehicle Safety-Responsibility Law. Proof of whether the person obtained or signed such declaration is irrelevant to the application of this section.

(7) Nothing in this section shall preclude a passenger in a vehicle from asserting a claim to recover damages for injury, death or loss which he occasioned, in whole or in part, by the negligence of another person arising out of the operation or use of a motor vehicle. This subsection shall not apply to a passenger who is also the owner of the uninsured motor vehicle involved in the accident.

(8) (a) Notwithstanding any provision of law to the contrary, no insurer shall lose any rights of subrogation for claims paid under the applicable insurance policy for the recovery of any sum in excess of the first Ten Thousand Dollars ($10,000.00) of bodily injury and the first Ten Thousand Dollars ($10,000.00) of property damages.

(b) In claims where no suit is filed, the claimant's insurer shall have all rights to recover any amount paid by the claimant's insurer on behalf of the insured for the recovery of any sum in excess of the first Ten Thousand Dollars ($10,000.00) of bodily injury and the first Ten Thousand Dollars ($10,000.00) of property damages.

(9) Except for newly acquired vehicles added to a policy subject to the policy terms, the issuance, change or adjustment of any motor vehicle liability security or insurance policy subsequent to a motor vehicle accident, without proof of coverage having been bound before such motor vehicle accident, shall not effectuate any of the following:

(a) The recovery for injury or damages that ore otherwise prohibited under this section.

(b) The defeat of any affirmative defense otherwise allowed under this section.

(c) The avoidance of liability for court costs otherwise required under this section.

(10) Reinstatement provisions of a policy during the premium payment grace period specified in the policy shall not be invalidated by the provisions of this section.

(11) The provisions of this act shall not apply to any vehicle which is legally parked at the time of the accident.

SECTION 2. This act shall take effect and be in force from and after January 1, 2000.