HB611 Alabama 2010 Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

Regular Session 2010

Title

Motor vehicles, liability insurance, online verification by Revenue Department authorized, penalties, Secs. 32-7A-23 to 32-7A-39, inclusive, 32-7B-1 to 32-7B-6, inclusive, added; Secs. 32-7-19, 32-7-20, 32-7-22, 32-7-24, 32-7A-2 to 32-7A-8, inclusive, am'd.; Secs. 32-7A-9 to 32-7A-22, inclusive, repealed

Summary

HB611 would require verification of motor vehicle liability insurance or other approved financial responsibility before registration, using a new online system overseen by state agencies.

What This Bill Does

It creates the Alabama Online Insurance Verification System and an advisory council to oversee its development, testing, and ongoing improvements. It mandates verification of insurance or other financial responsibility before vehicle registration or re-registration and authorizes electronic checks by the Department of Revenue and law enforcement. It restructures the law around insurance verification, sets data-sharing and security rules, and imposes penalties and reinstatement procedures for uninsured vehicles and false evidence of insurance.

Who It Affects

• Vehicle owners and registrants in Alabama who must maintain verified liability insurance or other allowed financial responsibility and could have registrations suspended or reinstated with associated fees if they do not comply.
• Insurance companies and state agencies (Department of Revenue, Department of Public Safety, and Department of Insurance) that must participate in and administer the online verification system, exchange data securely, and enforce the new requirements.

Key Provisions

• Establish the Alabama Online Insurance Verification System (Chapter 32-7B) to verify insurance status electronically.
• Create an Advisory Council (13 voting members) to guide implementation, testing, and periodic system reviews; chaired by the Commissioner of Revenue.
• Mandate verification of motor vehicle liability insurance or other legally allowed financial responsibility before motor vehicle registration and re-registration.
• Require insurers to cooperate, maintain verification data (up to six months), provide secure data services, and supply insurance cards with required information; provide immunity for good-faith compliance.
• authorize the Department of Revenue, Public Safety, and Insurance to access and operate the verification system; establish procedures for suspensions, notices, reinstatements, and related fees; and set penalties for noncompliance.
• Impose penalties for uninsured operation, presenting invalid insurance evidence, and violations of the chapter; include Class C misdemeanors/traffic offenses and reinstatement fees ($200 for first offense; $500 for subsequent offenses).
• Set minimum liability coverage levels (bodily injury/death and property damage) and outline acceptable forms of proof of insurance (cards, binders, declarations, etc.).
• Provide exemptions for certain vehicles and scenarios (e.g., government vehicles, trailers, self-insured arrangements, and specific fleet or non-owner policies).
• Provide for revenue and fund allocations related to reinstatement fees, with distributions to state and special funds and a portion to the Alabama Peace Officers’ Annuity Fund.
• Effective dates: Section 7 takes effect immediately; Sections 2-6 become effective January 1, 2013.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles