This bill changes certain penalties and requirements related to operating a
motor vehicle without sufficient liability insurance and allows certain religious sects
to qualify as self-insurers for the purposes of motor vehicle liability insurance
requirements.

Current law prohibits, with certain exceptions, a person from operating a motor
vehicle on a highway unless the vehicle owner or operator has in effect a sufficient

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motor vehicle liability insurance policy with respect to the motor vehicle. Any person
who violates this requirement may be required to forfeit not more than $500.
Current law also prohibits a person from operating a motor vehicle on a highway
unless the person has in his or her immediate possession proof that he or she is in
compliance with the insurance requirement.

Under this bill, persons who are operating a motor vehicle on certain
nonhighway areas, including certain parking areas, are also required to have in
effect insurance with respect to the motor vehicle.

This bill repeals the requirement that a person have in his or her immediate
possession proof of compliance with insurance requirements. However, under this
bill, a traffic officer must cite a person for operating without insurance if the traffic
officer does not know that the person is in compliance with the insurance
requirements and the person does not have in his or her immediate possession proof
of compliance. A person, though, may not be convicted of operating without
insurance if the person produces proof that he or she was in compliance with the
insurance requirements at the time he or she was issued a citation for a violation.

This bill also alters the penalties for operating without insurance. Under this
bill, a person who violates the requirement that the owner or operator of a motor
vehicle be insured is subject to the following penalties:

1. A forfeiture of not less than $250 and not more than $750 for a first offense.

2. A forfeiture of not less than $250 nor more than $1,500 for a second or
subsequent offense occurring within three years.

3. If the person, in the course of the violation, causes great bodily harm to
another, a forfeiture of not less than $250 nor more than $2,500.

4. If the person, in the course of the violation, causes the death of another, a
forfeiture of not less than $500 nor more than $7,500.

This bill also eliminates the exemption of operating without insurance offenses
from certain surcharges and fees that generally must be paid by persons who violate
traffic laws.

Currently, if the Department of Transportation receives a certified copy of a
judgment for damages of $500 or more arising out of a motor vehicle accident, DOT
must, with certain exceptions, immediately suspend the operating privilege and all
registrations of the person against whom the judgment was rendered unless the
person can provide proof of financial responsibility. Proof of financial responsibility
may be given by filing certification of coverage under a motor vehicle liability
insurance policy with minimum limits for any single accident of $25,000 for bodily
injury to or death of one person, $50,000 for bodily injury to or death of more than
one person, and $10,000 for property damage. Alternatively, proof of financial
responsibility may be furnished by depositing with DOT $60,000 in cash or certain
securities with a market value of $60,000. DOT must then hold the deposit of cash
or securities to satisfy any judgment against the person making the deposit for
damages resulting from the ownership, maintenance, use, or operation of a motor
vehicle, including damages for bodily injury, death, or property damage.

Under this bill, if DOT receives a record of conviction for operating a motor
vehicle on a highway without having in effect a motor vehicle liability insurance

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policy with respect to the vehicle, DOT must suspend the person's operating privilege
and all registrations of the person unless the person can provide proof of financial
responsibility. The proof of financial responsibility requirement remains in effect for
three years from the date of conviction.

Under current law, for the purposes of motor vehicle liability insurance
requirements and proof of financial responsibility requirements, in lieu of a motor
vehicle liability insurance policy, a person can show that the person is a self-insurer
possessing a certificate of self-insurance issued by DOT. Currently, a person who
owns a fleet of more than 25 motor vehicles registered in the person's name may
qualify as a self-insurer. Upon application, DOT may issue a certificate of
self-insurance to the person if DOT is satisfied that the person is possessed, and will
continue to be possessed, of ability to pay judgments obtained against the person.

Under this bill, a religious sect the members of which have collectively
registered with DOT more than 25 vehicles may qualify as a self-insurer. Upon
application, DOT may issue a certificate of self-insurance to a religious sect the
members of which have a long-standing history of providing mutual financial
assistance in a time of need, if DOT is satisfied that the religious sect is possessed,
and will continue to be possessed, of ability to pay judgments obtained against the
religious sect. If DOT issues a certificate of self-insurance to a religious sect, the
certificate of self-insurance provides the same exception for members of the religious
sect that, under current law, applies to a fleet owner: the certificate of self-insurance
can be used in lieu of motor vehicle liability insurance to satisfy proof of financial
responsibility and mandatory motor vehicle liability insurance requirements.