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SB 490 — Motor Vehicle Liability Policy Requirements

by Senator Garcia

This summary is provided for information only and does not represent the opinion of any Senator, Senate Officer, or Senate Office.

Prepared by: Banking and Insurance Committee (BI)

The bill extends the underwriting period for non-cancellable coverage required to reinstate driving privileges revoked or suspended for failure to maintain required security or for driving under the influence (DUI). During the underwriting period, the policy is effective but the insurer may cancel the policy. The bill also allows the insured to change the coverage amounts without requiring the policy to be cancelled, so long as the minimum required coverage amounts are maintained. The bill has no fiscal impact. 

If approved by the Governor, these provisions take effect July 1, 2014.

Vote: Senate 38-0; House 116-0