GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION
CHAPTER 402
The General Assembly of North Carolina enacts:
Section 1. G.S. 20-309(e) reads as rewritten:
"(e) Upon termination by
cancellation or otherwise of an insurance policy provided in subsection (b) of
this section, the insurer shall notify the Division of such termination. termination;
provided, no cancellation notice is required if the insurer issues a new
insurance policy complying with this Article at the same time the insurer
cancels or otherwise terminates the old policy, no lapse in coverage results,
and the insurer sends the certificate of insurance form for the new policy to
the Division. The Division, upon receiving notice of cancellation or
termination of an owner's financial responsibility as required by this Article,
shall notify such owner of such cancellation or termination, and such owner
shall, to retain the registration plate for the vehicle registered or required
to be registered, within 10 days from date of notice given by the Division
either:
(1) Certify to the Division that he had financial responsibility effective on or prior to the date of such termination; or
(2) In the case of a lapse in financial responsibility, pay a fifty dollar ($50.00) civil penalty; and certify to the Division that he now has financial responsibility effective on the date of certification, that he did not operate the vehicle in question during the period of no financial responsibility with the knowledge that there was no financial responsibility, and that the vehicle in question was not involved in a motor vehicle accident during the period of no financial responsibility.
Failure of the owner to certify that he has financial responsibility as herein required shall be prima facie evidence that no financial responsibility exists with regard to the vehicle concerned and unless the owner's registration plate has on or prior to the date of termination of insurance been surrendered to the Division by surrender to an agent or representative of the Division designated by the Commissioner, or depositing the same in the United States mail, addressed to the Division of Motor Vehicles, Raleigh, North Carolina, the Division shall revoke the vehicle's registration for 30 days.
In no case shall any vehicle, the registration of which has been revoked for failure to have financial responsibility, be reregistered in the name of the registered owner, spouse, or any child of the spouse, or any child of such owner within less than 30 days after the date of receipt of the registration plate by the Division of Motor Vehicles, except that a spouse living separate and apart from the registered owner may register such vehicle immediately in such spouse's name. Additionally, as a condition precedent to the reregistration of the vehicle by the registered owner, spouse, or any child of the spouse, or any child of such owner, except a spouse living separate and apart from the registered owner, the payment of a restoration fee of fifty dollars ($50.00) and the appropriate fee for a new registration plate is required. Any person, firm or corporation failing to give notice of termination shall be subject to a civil penalty of two hundred dollars ($200.00) to be assessed by the Commissioner of Insurance upon a finding by the Commissioner of Insurance that good cause is not shown for such failure to give notice of termination to the Division."
Sec. 2. This act becomes effective July 1, 1991.
In the General Assembly read three times and ratified this the 26th day of June, 1991.
───────────────────
James C. Gardner
President of the Senate
───────────────────
Daniel Blue, Jr.
Speaker of the House of Representatives