Bill Summaries: S 202 NO LAPSE, NO PROBLEM.

Printer-friendly: Click to view
  • Summary date: Apr 13 2021 - View Summary

    Senate committee substitute deletes the content of the 1st edition and now provides the following. 

    Amends GS 20-309.2 to require the Division of Motor Vehicles (DMV) to ensure that its records accurately reflect the insurance coverage status of each owner of a registered motor vehicle or one required to be registered by reconciling the notices received under the statute. Directs the DMV not to record a termination notice received under the statute as a lapse in financial liability if the DMV has received an earlier notice that establishes the owner has met the requirements for the vehicle through a liability policy that is not the subject of the later termination notice.

    Amends GS 20-311 to require the DMV to notify the owner by mail or electronically (was, mail only) upon receipt of evidence that the owner of a motor vehicle registered or required to be registered does not have financial responsibility for the operation of the vehicle. Makes clarifying changes. Adds that the DMV must assess no penalty against an owner that responds within the time period specified in existing law and establishes the following: (1) the owner sold the vehicle or transferred the title pursuant to State law regarding transfer of title or surrender of title to salvage vehicles within 10 days of the termination of financial responsibility for the vehicle; (2) the owner did not operate or allow the vehicle to be operated during the lapse due to damage or mechanical defect, or nonpossession due to sale or transfer for which there was a delay between the physical transfer and completion of the required paperwork; and (2) the owner has returned the NC registration plate or has submitted an affidavit indicating the plate has been lost, stolen, or destroyed. 

    Directs the DMV to develop a plan to implement a system for accepting documentation from insurers pursuant to GS 20-309.2, as amended, in an electronic format that allows for immediate transmission of insurance coverage status for owners of vehicles registered or required to be registered in the State. Requires the plan to also provide for electronic submission of documentation required from insurers to license an individual or register a motor vehicle. Directs the DMV to report to the specified NCGA committee chairs by October 1, 2021, detailing the plan developed.

    Changes the act's long title.

  • Summary date: Mar 8 2021 - View Summary

    Amends GS 20-311 by adding the requirement that the Division of Motor Vehicles (DMV) review its records and confirm whether a lapse in financial responsibility has occurred when it receives evidence that the owner of a motor vehicle registered or required to be registered in this state does not have financial responsibility for the operation of the vehicle. Provides that notification to the owner is only required when the review indicates that there is a lapse and now allows the notification to be provided by mail or electronically. Adds that evidence showing that a lapse did not occur includes proof of continuous financial responsibility or a form indicating transfer of title under GS 20-72 (transfer of title by owner) or GS 20-109.1 (surrender of titles to salvage vehicles) before the termination of the liability policy. Makes conforming changes.