SB423 Alabama 2013 Session

Summary

Primary Sponsor

Quinton Ross

Democrat

Session

Regular Session 2013

Title

Vessels, liability insurance required prior to registration and licensing, admin. and enforcement, penalties, Secs. 33-5A-1 to 33-5A-22 added

Summary

Requires proof of liability insurance before registering or licensing motorized vessels in Alabama, with exemptions for non-motorized boats, and creates penalties and enforcement mechanisms.

What This Bill Does

It adds the Mandatory Vessel Liability Insurance Act, which requires liability coverage for vessels registered in Alabama (with exemptions for non-motorized vessels). It sets minimum coverage amounts and allows a bond or cash deposit as alternatives, and requires proof of insurance to be carried on board. The Department of Conservation and Natural Resources would administer the program, enforce the rules, and suspend vessel registrations for violations, using random checks. It also mandates dealers to carry blanket liability for inventory and outlines penalties for fraud and noncompliance.

Who It Affects

• Vessel owners and operators registered in Alabama who must obtain and maintain liability insurance and carry proof onboard; registrations can be suspended for noncompliance.
• Vessel dealers, reconditioners, rebuilder, and wholesalers who must maintain blanket liability insurance for vessels in inventory and provide proof of insurance with license applications.

Key Provisions

• Creates the Mandatory Vessel Liability Insurance Act (Chapter 5A) requiring liability insurance for vessels registered in Alabama and prohibiting operation or registration without coverage, with certain exemptions.
• Sets minimum liability limits: $25,000 per person for bodily injury, $50,000 total for bodily injury to two or more people per accident, and $25,000 for property damage; requires a vessel liability bond of at least $50,000 or a cash deposit as alternatives.
• Requires evidence of insurance to be carried on board the vessel and designates acceptable forms of proof (insurance card, declarations page, binder, etc.) with required information.
• Empowers the Department to administer, enforce, and suspend registrations; permits random sampling to verify coverage; prohibits inspections solely to verify insurance existence.
• Imposes penalties for violations, including Class C felonies for fraud or counterfeit insurance evidence and Class C misdemeanors for various violations; establishes reinstatement fees ($100 for first violation, $200 for subsequent) and possible extended insurance requirements after violations.
• Specifies suspension and reinstatement procedures, including notice, deadlines to provide proof of insurance, and potential mandatory insurance for a period after violations.
• Requires vessel dealers to maintain blanket liability insurance for inventory and to file proof with license applications; licenses may be denied without proof of coverage.
• Excludes certain vessels from the act (e.g., U.S. government vessels, self-insured vessels, vessels with other compliant insurance, inoperable vessels, and vessels registered elsewhere).
• The act becomes effective on the first day of the third month after the governor signs it.

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

Subjects

Vessels