MISSISSIPPI LEGISLATURE

2016 Regular Session

To: Insurance

By: Representative Chism

House Bill 525

(COMMITTEE SUBSTITUTE)

AN ACT TO REQUIRE A CERTIFICATE OF INSURANCE BE PROVIDED TO THE DEPARTMENT OF PUBLIC SAFETY TO REINSTATE A DRIVER'S LICENSE THAT HAS BEEN SUSPENDED UNDER THE IMPLIED CONSENT LAWS; TO REQUIRE A CERTIFICATE OF INSURANCE BE PROVIDED THE DEPARTMENT WHEN A PERSON CAUSES CERTAIN DAMAGE AND THE OTHER PERSON'S UNINSURED MOTORIST COVERAGE HAD TO PAY OUT; TO REQUIRE INSURANCE COMPANIES TO PROVIDE CERTAIN NOTICE TO THE DEPARTMENT OF PUBLIC SAFETY; TO AMEND SECTION 63-15-43, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF AND REQUIREMENTS OF A MOTOR VEHICLE LIABILITY POLICY; AND FOR RELATED PURPOSES.

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

SECTION 1.  (1)  In order for an individual that has received a license suspension under the State of Mississippi's Implied Consent Laws to be eligible for reinstatement, in addition to other requirements at law, he or she must provide to the Department of Public Safety, a certificate of insurance as a method of giving proof of financial responsibility as provided in Sections 63-15-37(1), 63-15-39 and 63-15-41, that shall be maintained for not less than a period of three (3) years after issuance in accordance with the requirements as set forth in Section 63-15-61.

     (2)  If a person operating an automobile caused damages including bodily injury, death or property damage in an amount greater than Five Hundred Dollars ($500.00), and such person did not have insurance in at least the minimum amounts required under the Mississippi Motor Vehicle Safety-Responsibility Law at the time of such incident causing the damage, resulting in the damaged person's recovery under his uninsured motorist coverage, he or she must provide to the Department of Public Safety proof of financial responsibility in the form of a certificate of insurance, that shall be in effect for not less than a period of three (3) years after issuance in accordance with the requirements as set forth in Section 63-15-61.

     (3)  If a person fails to maintain the certificate of insurance coverage for the time period required under this section, the Department of Public Safety shall suspend the person's driving privilege until either the person resumes the certificate of insurance coverage and pays the required reinstatement fee, or the time period required for the certificate of insurance coverage expires.

     (4)  The Department of Public Safety may promulgate rules and regulations necessary for the implementation of this section.

SECTION 2.  (1)  Insurance companies must send to the Department of Public Safety a notice of cancellation within fifteen (15) days of the cancellation of coverage required under Section 1 of this act when such cancellation of coverage occurs before the expiration of the time period required under Section 1 of this act.

     (2)  Insurance companies paying out under uninsured motorist coverage in the scenario provided under Section 1(2) of this act shall notify the Department of Public Safety within fifteen (15) days of such uninsured motorist coverage payout.

     (3) The Commissioner of Insurance may promulgate rules and regulations necessary for the implementation and enforcement of this section.

     SECTION 3.  Section 63-15-43, Mississippi Code of 1972, is amended as follows:

     63-15-43.  (1)  A "motor vehicle liability policy" as said term is used in this chapter shall mean an owner's or an operator's * * * policy of liability insurancemotor vehicle liability policy, that has been certified as provided in Section 63-15-39 or Section 63-15-41, as proof of financial responsibility, and issued, except as otherwise provided in Section 63-15-41, by an insurance company duly authorized to write motor vehicle liability insurance in this state, to or for the benefit of the person named therein as insured.

     (2)  Such owner's * * * policy of liability insurancemotor vehicle liability policy:

          (a)  * * * Shall designate by explicit description or by appropriate reference all motor vehicles with respect to which coverage is thereby to be granted.May be any motor vehicle liability policy form that has been filed with and approved by the Commissioner of Insurance and may contain exclusions and limitations on coverage as long as the exclusions and limitations language has been filed with and approved by the Commissioner of Insurance.

          (b)  Shall * * * pay on behalf of the insured named therein and any other person, as insured, using any such motor vehicle or motor vehicles with the express or implied permission of such named insured, all sums which the insured shall become legally obligated to pay as damages arising out of the ownership, maintenance or use of such motor vehicle or motor vehicles within the United States of America or the Dominion of Canada, subject to limits exclusive of interest and costs, with respect to each such motor vehicle, as followshave limits of liability no less than:  Twenty-five Thousand Dollars ($25,000.00) because of bodily injury to or death of one (1) person in any one (1) accident and, subject to said limit for one (1) person, Fifty Thousand Dollars ($50,000.00) because of bodily injury to or death of two (2) or more persons in any one (1) accident, and Twenty-five Thousand Dollars ($25,000.00) because of injury to or destruction of property of others in any one (1) accident.

 * * * (3)  Such operator's policy of liability insurance shall pay on behalf of the insured named therein all sums which the insured shall become legally obligated to pay as damages arising out of the use by him of any motor vehicle not owned by him, within the same territorial limits and subject to the same limits of liability as are set forth above with respect to an owner's policy of liability insurance.

(4)  Such motor vehicle liability policy shall state the name and address of the named insured, the coverage afforded by the policy, the premium charged therefor, the policy period and the limits of liability, and shall contain an agreement or be endorsed that insurance is provided thereunder in accordance with the coverage defined in this chapter as respects bodily injury and death or property damage, or both, and is subject to all the provisions of this chapter.

(5)  Such motor vehicle liability policy shall not insure:

  (a)  Any obligation for which the insured or any company as his insurer may be held liable under any workmen's compensation law;

(b)  Any liability on account of bodily injury to or death of any employee of the insured while engaged in the employment, other than domestic, of the insured, or in domestic employment if benefits therefor are either payable or required to be provided under any workmen's compensation law; or

  (c)  Any liability because of injury to or destruction of property owned by, rented to, in charge of or transported by the insured.

     ( * * *(6)3)  Every motor vehicle liability policy certified under the provisions of this chapter shall be subject to the following provisions which need not be contained therein:

          (a)  The liability of the insurance company with respect to the insurance required by this chapter shall become absolute whenever injury or damage covered by said motor vehicle liability policy occurs; said policy may not be cancelled or annulled as to such liability by any agreement between the insurance company and the insured after the occurrence of the injury or damage; no statement made by the insured or on his behalf and no violation of said policy shall defeat or void said policy;

          (b)  The satisfaction by the insured of a judgment for such injury or damage shall not be a condition precedent to the right or duty of the insurance company to make payment on account of such injury or damage;

          (c)  The insurance company shall have the right to settle any claim covered by the policy, and if such settlement is made in good faith, the amount thereof shall be deductible from the limits of liability specified in paragraph (b) of subsection (2) of this section; or

          (d)  The policy, the written application therefor, if any, and any rider or endorsement which does not conflict with the provisions of the chapter shall constitute the entire contract between the parties.

     ( * * *(7)4)  Any policy which grants the coverage required for a motor vehicle liability policy may also grant any lawful coverage in excess of or in addition to the coverage specified for a motor vehicle liability policy, and such excess or additional coverage shall not be subject to the provisions of this chapter.  With respect to a policy which grants such excess or additional coverage, the term "motor vehicle liability policy" shall apply only to that part of the coverage which is required by this section.

     ( * * *(8)5)  Any motor vehicle liability policy may provide that the insured shall reimburse the insurance company for any payment the insurance company would not have been obligated to make under the terms of the policy except for the provisions of this chapter.

     ( * * *(9)6)  Any motor vehicle liability policy may provide for the prorating of the insurance there under with other valid and collectible insurance.

     ( * * *(10)7)  The requirements for a motor vehicle liability policy may be fulfilled by the policies of one or more insurance companies which policies together meet such requirements.

     ( * * *(11)8)  Any binder issued pending the issuance of a motor vehicle liability policy shall be deemed to fulfill the requirements for such a policy.

     SECTION 4.  This act shall take effect and be in force from and after January 1, 2017.

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