SB419 Alabama 2010 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2010

Title

Motor vehicles, liability insurance, verification prior to registration, online insurance verification system established, Revenue Department and law enforcement to electronically verify, Secs. 32-7A-9, 32-7A-10, 32-7A-11, 32-7A-12, 32-7A-13, 32-7A-14, 32-7A-15, 32-7A-16, 32-7A-17, 32-7A-18, 32-7A-19, 32-7A-20, 32-7A-21, 32-7A-22, 32-7A-23, 32-7A-24, 32-7A-25, 2-7B-1, 32-7B-2, 32-7B-3, 32-7B-4, 32-7B-5, 32-7B-6 added; Secs. 32-7-19, 32-7-20, 32-7-22, 32-7-24, 32-7A-2, 32-7A-3, 32-7A-4, 32-7A-5, 32-7A-6, 32-7A-7, 32-7A-8 am'd.; Secs. 32-7A-9, 32-7A-10, 32-7A-11, 32-7A-12, 32-7A-13, 32-7A-14, 32-7A-15, 32-7A-16, 32-7A-17, 32-7A-18, 32-7A-19, 32-7A-20, 32-7A-21, 32-7A-22 repealed and reenacted

Summary

SB419 would require proof of motor vehicle liability insurance before registration and create an online system to verify coverage, giving authorities new powers to suspend uninsured vehicles.

What This Bill Does

It requires proof of financial responsibility before motor vehicle registration or re-registration, using certificates of insurance, bonds, deposits, or self-insurance. It establishes an Online Insurance Verification System that the Department of Revenue, law enforcement, and insurers would use to verify coverage in real time and to display evidence of insurance for insured vehicles. If a vehicle is uninsured, the department can suspend its registration after notice and require proof of insurance plus reinstatement fees to lift the suspension. It also sets rules for carrying proof of insurance in the vehicle, establishes penalties for fraud or noncompliance, and creates an oversight framework including an advisory council and privacy protections.

Who It Affects

• Vehicle owners and registrants/operators in Alabama, who must maintain insurance, provide proof before registration or re-registration, carry evidence of insurance in the vehicle, and face registration suspensions and reinstatement fees if uninsured or noncompliant.
• Insurance companies and state/local agencies (Department of Revenue, Department of Public Safety, Department of Insurance, law enforcement, license plate issuing officials), who must implement and operate the online verification system, share data under privacy rules, and enforce the new requirements.

Key Provisions

• Establishes the Alabama Online Insurance Verification System (Chapter 7B) to verify motor vehicle liability insurance status 24/7 via web services accessible to the Department of Revenue, law enforcement, and insurers.
• Requires proof of financial responsibility before registration or re-registration and sets minimum coverage levels consistent with existing liability requirements; defines acceptable proof (certificate of insurance, bond, cash deposit, or self-insurance).
• Mandates carrying evidence of insurance in the vehicle and outlines allowed forms (insurance cards, declarations pages, current binders, or other compliant documents); addresses fleet and non-owner policies.
• Authorizes suspension of vehicle registrations for uninsured vehicles after notice, with reinstatement only after providing proof of insurance and paying reinstatement fees ($200 for first, $500 for second or subsequent); license plates cannot be transferred while suspended.
• Imposes penalties for violations, including Class C felonies or misdemeanors for fraud or violations of the chapter, and traffic fines (up to $200 for first offense, increasing for subsequent offenses).
• Creates an advisory council to oversee implementation, testing, and periodic evaluation of the online system; assigns duties to insurers and the Department of Revenue, Department of Public Safety, and Department of Insurance.
• Provides data security and privacy protections for information in the online verification system; restricts data sharing to permitted entities and requires open standards and potential third-party vendors as needed.
• Effective dates specify immediate effect for initial provisions and January 1, 2013 for remaining sections.
• Requires license plate officials to verify insurance before issuing plates and to collect reinstatement fees; prohibits registration actions if suspended; statute outlines confidentiality regarding suspension and reinstatement information.

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