SB137 Alabama 2011 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2011

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, 32-7B-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32-7A-11, 32-7A-12, 32-7A-13, 32-7A-14, 32-7A-15, 32-7A-16, 32-7A-17, 32-7A-18, 32-7A-19, 32-7A-20, 32-7A-21, 32-7A-22 repealed and reenacted (2011-21169)

Summary

SB137 creates an Online Insurance Verification System to verify motor vehicle liability insurance before registration and re-registration in Alabama, replacing old rules with a modern framework.

What This Bill Does

It requires proof of financial responsibility for motor vehicles to be verified through a new online system before a vehicle can be registered or renewed. It repeals older provisions and establishes a comprehensive framework (Chapter 7B) to run the online verification, with the Department of Revenue and law enforcement able to check insurance status electronically. It sets penalties for driving or registering without insurance, including suspending registrations and requiring reinstatement fees, and creates an advisory council to guide implementation and ongoing improvements. It also lists exemptions and requires insurers to participate and keep data secure.

Who It Affects

• Vehicle owners and registrants/operators in Alabama, who must carry evidence of liability insurance and may have their vehicle registrations suspended if proof cannot be verified online.
• Insurance companies and state/local government agencies involved in registration, enforcement, and administration (Department of Revenue, law enforcement, license plate issuing offices, courts) who must implement the system, verify data, pay and receive notices and fees, and maintain data.

Key Provisions

• Creates the Online Insurance Verification System (OIVS) and repeals older sections, while adding new sections to require verification of motor vehicle liability insurance before registration and re-registration.
• Establishes Chapter 7B with an Advisory Council to oversee implementation, develop data standards, conduct testing, and periodically review system effectiveness and improvements.
• Insurers must cooperate, maintain verification data for at least six months, operate the data web services, and provide proper insurance cards or electronic evidence showing required details (VIN, year, make, policy number, dates, etc.).
• Department and law enforcement can verify insurance status 24/7 through the OIVS; licensing officials must verify before issuing or renewing registrations and may suspend registrations for noncompliance.
• Imposes penalties for violations, including criminal penalties for certain offenses and traffic violations for presenting invalid insurance evidence; registrations can be suspended, and citations can lead to impoundment in some cases.
• Reinstatement fees apply for suspended registrations: $200 for first violation and $400 for second or subsequent violations, with requirements to provide proof of insurance and, in some cases, a period of mandated insurance purchase.
• Exempts certain vehicles from coverage requirements (e.g., trailers, government-owned vehicles, certain government-regulated vehicles, and other specified categories).
• Confidential handling of suspension/reinstatement status; information is released only to the subject and necessary agencies, courts, and licensing offices.
• Provides for small insurers to have alternative reporting methods; outlines how reinstatement funds are distributed and used (department operations, licensing offices, and related funds).
• Effective dates vary by section, with some provisions effective immediately and others starting 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