§ 47-7-602. Certification of existence of security - Online verification system - Exemptions.

A.  1.  The owner of a motor vehicle registered in this state shall carry in the vehicle at all times a current owner's security verification form listing the vehicle or an equivalent form which has been issued by the Department of Public Safety, and the operator of the vehicle shall produce the form upon request for inspection by any law enforcement officer or representative of the Department and, in case of an accident, the form shall be shown upon request to any person affected by the accident.

2.  a.Every person registering a motor vehicle in this state, except a motor vehicle which is not being used upon the public highways or public streets, or a manufactured home while on a permanent foundation, at the time of registration of the vehicle, shall certify the existence of security with respect to the vehicle by surrendering to a motor license agent or other registering agency a current owner’s security verification form from an insurance carrier authorized to do business in this state or an equivalent form issued by the Department of Public Safety.  A motor license agent or other registering agency shall require the surrender of the form prior to processing an application for registration or renewal.

b.Every motor license agent or other registering agency shall use the online verification system to certify the existence of security with respect to the vehicle from an insurance carrier authorized to do business in this state unless the online verification system is not online or the required information is otherwise not available.  In such a case, the license agent or other registering agency may accept verification as provided in subparagraph a of this paragraph to certify the existence of the required insurance prior to processing any application for motor vehicle registration.

3.  Fleet vehicles operating under the authority of the Corporation Commission, the Federal Highway Administration, or vehicles registered pursuant to the provisions of Section 1120 of this title, shall certify the existence of security with respect to each vehicle at the time of registration by submitting one of the following:

a.a current owner's security verification form verifying the existence of security as required by the Compulsory Insurance Law, or

b.a permit number verified by the Corporation Commission indicating the existence of a current liability insurance policy.  Provided, in the event the Corporation Commission is unable to verify the existence of insurance as provided herein in a prompt and timely fashion, the Corporation Commission may accept a current single state registration form issued by the Corporation Commission or any other regulating entity with which the Corporation Commission has entered into a reciprocal compact or agreement regarding the regulation of motor vehicles engaged in interstate or foreign commerce upon and over the public highways.

4.  The following shall not be required to carry an owner's or operator's security verification form or an equivalent form from the Department of Public Safety during operation of the vehicle and shall not be required to surrender a security verification form for vehicle registration purposes:

a.any vehicle owned or leased by the federal or state government, or any agency or political subdivision thereof,

b.any vehicle bearing the name, symbol, or logo of a business, corporation or utility on the exterior and which is in compliance with the provisions of the Compulsory Insurance Law according to records of the Corporation Commission which reflect a deposit or fleet policy,

c.fleet vehicles maintaining current vehicle liability insurance as required by the Corporation Commission or any other regulating entity,

d.any licensed taxicab, and

e.any vehicle owned by a licensed used motor vehicle dealer.

5.  Any person who knowingly issues or promulgates false or fraudulent information in connection with either an owner's or operator's security verification form or an equivalent form which has been issued by the Department of Public Safety shall be guilty of a misdemeanor and upon conviction shall be subject to a fine not exceeding Five Hundred Dollars ($500.00), or imprisonment for not more than six (6) months, or by both such fine and imprisonment.

B.  Each motor license agent is authorized to charge a fee of One Dollar and fifty cents ($1.50) to each person to whom the agent issues a certificate of registration and who is required to surrender proof of financial responsibility, or for whom the motor license agent certifies the existence of financial responsibility through an authorized online certification system, pursuant to the provisions of the Compulsory Insurance Law.  The fee may be retained by the agent as compensation for services in processing the proof of financial responsibility and for processing the driver license information, insurance verification information, and other additional information furnished to the agent pursuant to Section 1112 of this title, if such agent does not receive the maximum compensation as authorized by law.

Added by Laws 1976, c. 176, § 2, operative Dec. 11, 1976.  Amended by Laws 1980, c. 235, § 8, eff. Jan. 1, 1981; Laws 1982, c. 355, § 6, operative July 1, 1982; Laws 1983, c. 49, § 1; Laws 1990, c. 298, § 1; Laws 1999, c. 232, § 4, eff. July 1, 1999; Laws 2004, c. 522, § 5, eff. July 1, 2004; Laws 2006, c. 322, § 2, eff. July 1, 2006; Laws 2009, c. 62, § 33, eff. Nov. 1, 2009; Laws 2010, c. 440, § 2, eff. Nov. 1, 2010.

Note

NOTE:  Laws 1980, c. 85, § 3 repealed by Laws 1982, c. 355, § 11, emerg. eff. June 2, 1982.