An Act To Require Insurance Companies To Notify the Secretary of State when a Motor Vehicle Has Been Insured
Maine Legislature, Session 122, LD 1765
Committee: Transportation
Sponsors: COWGER, BURNS, MARLEY
Amends: 29-A MRSA §1601-A

Legislative Document 
No. 1765 
S.P.682 
In Senate, December 30, 2005 
An Act To Require Insurance Companies To Notify the Secretary of 
State when a Motor Vehicle Has Been Insured 
Approved for introduction by a majority of the Legislative Council Pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 28,2005. Referred to the Committee 
on Transportation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401. 
Presented by Senator COWGER of Kennebec. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative BURNS of Berwick, Representative MARLEY of Portland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 29-A MRSA §1601-A, as amended by PL 2005, c. 
§§1 and 2 and affected by §3 and corrected by RR 2005, c. 1, 
is further amended to read: 
§1601-A. 
Notification of new insurance or cancellation of 
428, 
§14, 
insurance 
1. 
Notice to Secretary of State required. 
A company 
insuring 
a 
motor 
vehicle 
registered 
in 
this 
State 
shall 
immediately notify the Secretary of State when that insurance 
coverage is 
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A. 
New coverage~ 
B. 
Cancelled or terminated or lapses. 
If the company knows 
that a replacement policy has been secured in place of the 
policy cancelled, terminated or lapsed, the company is not 
required to notify the Secretary of State. 
2. 
Method of notification. 
The notice must be in writing 
and must be transmitted by the insurance company by electronic 
means as prescribed by the Secretary of State. 
3. 
Content 
of 
notice. 
The 
notice 
must 
include 
the 
following: 
A. 
Name, address and date of birth of the owner or owners 
of the motor vehicle; and 
B. 
Vehicle identification number. 
4. 
Suspension. 
Except as provided in subsection 5, 
the 
Secretary of State, upon termination of a IS-day reconciliation 
period described in subsection 6 following receipt of the notice 
of cancellation. termination or lapse required in subsection lL 
paragraph B and a lack of evidence of insurance, shall suspend, 
within 20 days and in accordance with section 2482, the owner's 
registration certificate and plates for that motor vehicle. 
The 
suspension 
continues 
until that person provides 
evidence 
of 
insurance to the Secretary of State or until the Secretary of 
State receives notice of new insurance coverage as required in 
subsection 1, paragraph A. 
Page l-LR2457(1) 
5. 
Stored vehicles. 
The Secretary of State, upon receipt 
of the notice of cancellation, termination or lapse required in 
subsection 1, paragraph B, 
may cancel the owner's registration 
certificate and plates for a stored vehicle, 
The Secretary of 
State may not reinstate the registration certificate and plates 
until the owner provides evidence of insurance to the Secretary 
of State or until the Secretary of State receives notice of new 
insurance coverage as reguired in subsection 1, paragraph A, 
For 
the purposes of this subsection, "stored vehicle" means a motor 
vehicle that the Secretary of State determines is stored and not 
operated for a period of at least 3 consecutive months per year. 
The Secretary of State may not, upon cancellation, refund any 
portion of the registration fee. 
6. 
Reconciliation period. 
Upon receipt of notice under 
subsection 1, paragraph B, the Secretary of State has a 15-day 
period in which to reconcile the cancellation, termination or 
lapse 
with 
the 
evidence 
of 
insurance 
for 
reinstatement 
of 
coverage or 
new 
coverage 
u;u;;eived pursuant to 
subsectio~ 
paragraph A. If no reconciliation is made, the Secretary of State 
shall send a notification of registration suspension pursuant to 
subsection 4. 
1. 
Evidence of insurance. 
An 
iBSHFaB€e-~-9F insured 
person may 
submit evidence of insurance to the Secretary of 
State. The Secretary of State shall accept evidence of insurance 
from 
an insured person for reinstatement of coverage or 
new 
coverage by any of the following means: 
A. 
Electronic transmittal; 
B. 
The Internet; 
C. 
Facsimile; 
D. 
Mail; or 
E. 
Proof of insurance presented at an office of the Bureau 
of Motor Vehicles. 
8. 
Fleet insured with cOJmlercial automobile coverage. 
A 
company insuring a fleet of 3 or more vehicles with commercial 
fleet automobile coverage is exempt from the requirements of this 
section with respect to that fleet. 
For 
the 
purposes 
of 
this 
subsection, 
"commercial 
automobile 
coverage" means any coverage provided to an insured, regardless 
of 
number of vehicles or entity covered, 
under 
a 
commercial 
automobile, garage or truckers coverage form and rated according 
to either a commercial manual or a rating rule as filed with and 
approved by the Bureau of Insurance. 
Vehicle type and ownership 
are not the primary factors in either underwriting the coverage 
or rating the coverage. 
The rating may be subject to individual 
risk characteristics, including, but not limited to, experience 
rating, schedule rating, loss rating and deductible rating. 
Sec.2. Effective date. 
This Act takes effect January 1, 2007. 
SUMMARY 
Current law requires an insurance company providing coverage 
for a vehicle in this State to notify the Secretary of State when 
that insurance coverage is cancelled or terminated or lapses. 
Beginning January 1, 2007, an insurance company or an insured is 
allowed to provide 
the Secretary of State with evidence of 
insurance via electronic means, the Internet, facsimile or U. S. 
mail or in person. 
This bill, beginning January 1, 2007, instead requires an 
insurance company that is beginning coverage on a motor vehicle 
in this State to provide the Secretary of State with notice of 
that coverage. 
The Secretary of State is required to reconcile a 
notice of cancellation, termination or lapse with a notice of new 
coverage.