An Act To Amend the Laws Governing Proof of Financial Responsibility with Respect to Motor Vehicles
Maine Legislature, Session 130, LD 0368
Committee: Health Coverage, Insurance and Financial Services
Sponsors: SANBORN
Amends: 29-A MRSA §402, 29-A MRSA §1551, 29-A MRSA §1602, 29-A MRSA §1605

Legislative Document
No. 368
S.P. 151
In Senate, February 10, 2021
An Act To Amend the Laws Governing Proof of Financial 
Responsibility with Respect to Motor Vehicles
Submitted by the Secretary of State pursuant to Joint Rule 204.
Received by the Secretary of the Senate on February 8, 2021.  Referred to the Committee 
on Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator SANBORN of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  29-A MRSA §402, sub-§3, as enacted by PL 1993, c. 683, Pt. A, §2 and 
affected by Pt. B, §5, is amended to read:
3.  Alternative methods of establishing evidence of insurance.  An individual is 
considered to comply with subsection 2 if the individual shows evidence of compliance 
with the provisions of section 1605, subsection 3, paragraph A, or B or C.
Sec. 2.  29-A MRSA §1551, sub-§4, as amended by PL 2013, c. 72, §3, is further 
amended to read:
4.  Insurance identification card.  "Insurance identification card" means an 
identification of insurance in paper or electronic form issued to an insured by an insurer 
pursuant to Title 24‑A, section 2412, subsection 7; or an identification of proof of financial 
responsibility a certificate of compliance with the laws governing financial responsibility 
in paper or electronic form issued by the Secretary of State to a person who elects to provide 
proof of financial responsibility in accordance with section 1605.
Sec. 3.  29-A MRSA §1602, sub-§1, ¶I, as enacted by PL 1993, c. 683, Pt. A, §2 
and affected by Pt. B, §5, is amended to read:
I.  The operator of a vehicle owned by the State or a political subdivision, or by a 
corporation that has complied with section 1605, subsection 3, paragraph C; or
Sec. 4.  29-A MRSA §1605, sub-§3, as enacted by PL 1993, c. 683, Pt. A, §2 and 
affected by Pt. B, §5, is amended to read:
3.  Methods of giving proof.  Proof of financial responsibility may be given by the 
following methods:
A.  By filing with the Secretary of State a certificate from an insurance or surety 
company; or
B.  By the deposit of money or securities; or.
C.  For a corporation, by satisfying the Secretary of State that the corporation has 
financial ability to comply with the requirements of this subchapter.
Sec. 5.  29-A MRSA §1605, sub-§4, as enacted by PL 1993, c. 683, Pt. A, §2 and 
affected by Pt. B, §5, is amended to read:
4.  Money or securities deposited as proof.  A person may give proof of financial 
responsibility by delivering to the Secretary of State a receipt of the Treasurer of State 
showing a deposit of money or securities approved by the Treasurer of State with a value 
or amount equal to that required in a policy.
Securities must be of a type that may legally be purchased by savings banks or for trust 
funds.
Money or securities deposited are subject to execution to satisfy a judgment, but are not 
otherwise subject to attachment or execution.  The deposited money or securities may also 
be released upon the direction of the Secretary of State when the holding period to satisfy 
the statute of limitations has been satisfied.
The depositor shall also provide evidence that there are no unsatisfied judgments against 
the depositor registered in the office of the clerk of any Superior Court in this State.
Upon receipt and approval by the Secretary of State of the Treasurer of State's receipt and 
the evidence that there are no unsatisfied judgments against the depositor, the Secretary of 
State shall issue to the depositor a certificate of compliance with the laws governing 
financial responsibility effective for a specific period of time not to exceed one year.  This 
certificate may be produced to establish proof of financial responsibility at the request of a 
law enforcement officer or to satisfy registration requirements under section 402.
The depositor shall submit to the Secretary of State a new statement from the Treasurer of 
State and new evidence that there are no unsatisfied judgments against the depositor 
registered in the office of the clerk of any Superior Court in this State one month prior to 
the expiration of the period covered by the most recently issued certificate of compliance.  
Upon inspection and approval of the new receipt and evidence, the Secretary of State shall 
issue a new certificate of compliance for a new period of time not to exceed one year.
The depositor shall, as necessary, make additional deposits to maintain the deposit in a 
value or amount equal to that required in a policy.  If the value of the money or securities 
deposited at any time falls below the value or amount equal to that required in a policy and 
remains below that value or amount for a period of 30 days, the Secretary of State shall 
revoke the certificate of compliance.
Actions taken by the Treasurer of State or the Secretary of State pursuant to this subsection 
do not constitute doing the business of insurance.
Sec. 6.  29-A MRSA §1605, sub-§5, as enacted by PL 1993, c. 683, Pt. A, §2 and 
affected by Pt. B, §5, is amended to read:
5.  May substitute other proof.  The Secretary of State shall return or cancel proof on 
acceptance of other adequate proof of financial responsibility, except that when proof of 
financial responsibility is established by the deposit of money or securities, the Treasurer 
of State shall hold the money or securities for a period of not less than 6 years following 
the cancellation of the deposit as proof of financial responsibility or for such other period 
of time required to satisfy the statute of limitations in effect at the time of cancellation for 
filing damage claims for causes of action arising from a motor vehicle accident.
Sec. 7.  29-A MRSA §1605, sub-§9 is enacted to read:
9.  Rules.  The Treasurer of State may adopt routine technical rules pursuant to Title 
5, chapter 375, subchapter 2-A to implement the provisions of this section.
SUMMARY
This bill changes the laws governing proof of financial responsibility with respect to 
motor vehicles by clarifying and eliminating certain methods of providing proof of 
financial responsibility.