ALABAMA DEPARTMENT OF REVENUE

MOTOR VEHICLE DIVISION

ADMINISTRATIVE CODE

CHAPTER 810-5-8 MANDATORY LIABILITY INSURANCE

TABLE OF CONTENTS

810-5-8-.01 Issuance Of Certificate Of Motor Vehicle Liability Bond

810-5-8-.02 Issuance Of Certificate Of Cash Bond And Satisfaction Of Judgments

810-5-8-.03 Use Of Motor Numbers On Insurance Cards And Other Proof Of Liability Insurance In Lieu Of Vehicle Identification Numbers

810-5-8-.04 Registration Denial–Mandatory Liability Insurance Law

810-5-8-.05 Information To Be Shown On Insurance Cards

810-5-8-.06 Affirmation Of Motor Vehicle Liability Insurance

810-5-8-.07 Providing Listings To County Officials Of Vehicles Suspended Under Insurance Laws; Refusing Registration To Owners Of Suspended Vehicles; Confidentiality Of Information Regarding Suspended Persons

810-5-8-.08 Refunds Of Reinstatement Fees Generally; Refund Request Forms; Procedures To Appeal Denial Of Requests For Refund Of Reinstatement Fees

810-5-8-.09 Affirmation Of Motor Vehicle Liability Insurance For Apportioned Vehicles; Driver’s License Or FEIN Required; Registration Denial

Appendix A

Appendix B

Appendix C

810-5-8-.01 Issuance Of Certificate Of Motor Vehicle Liability Bond.

(1) Section 32-7A-4, Code of Ala. 1975, provides an alternative to motor vehicle liability insurance requirements for motor vehicles covered by a "motor vehicle liability bond" and "shall be a sum of not less than fifty thousand dollars ($50,000.00)

(2) The "Motor Vehicle Liability Bond" (Form MV-MLI-004) shall be filed with the Department of Revenue’s Motor Vehicle Division. The bond must be executed by a company qualified to conduct a surety business in Alabama, and shall be conditioned on the payment of the amount of any judgment rendered against the principal in the bond or any person responsible for the operation of the principal’s motor vehicle with his or her express or implied consent, arising from injury, death, or damage sustained through the use, operation, maintenance, or control of the motor vehicle within the State of Alabama.

(3) In order to prove their coverage, persons who purchase a motor vehicle liability bond, shall carry within each vehicle the "Motor Vehicle Liability Bond Certificate" (Form MV-MLI-005) (or legible copy thereof) as issued by the Department of Revenue. The "Motor Vehicle Liability Bond Certificate" shall contain the vehicle identification number.

(4) The "Motor Vehicle Liability Bond Certificate" (or legible copy thereof) shall be displayed upon request by any law enforcement officer as provided under Section 32-7A-6(h) in order for the officer to ascertain that the vehicle owner or operator is covered under the provisions of Chapter 7A of Title 32. If the owner refuses or fails to provide proof of exemption as provided in this rule, the person shall be in violation of Section 32-7A-16.

(5) In the event that the person to whom a "Motor Vehicle Liability Bond Certificate" is issued, elects to and does terminate the bond, the person is canceled by the surety, or the bond otherwise becomes invalid, the owner or operator shall obtain insurance coverage as provided by Chapter 7A of Title 32. Anyone who cancels or has his/her liability bond canceled shall not display the "Motor Vehicle Liability Bond Certificate" (or legible copy thereof). Anyone displaying a "Motor Vehicle Liability Bond Certificate" knowing the Certificate has been canceled or knowing the Certificate is illegally altered, counterfeit or otherwise invalid, is in violation of Section 32-7A-16.

Author: Robert McCain

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Rule: Filed March 22, 2001; effective April 26, 2001.

810-5-8-.02 Issuance Of Certificate Of Cash Bond And Satisfaction Of Judgments.

(1) Section 32-7A-4, Code of Ala. 1975, provides an alternative to motor vehicle liability insurance requirements for motor vehicles covered by a "deposit of cash with the State Treasurer" and "shall be a sum of not less than fifty thousand dollars ($50,000.00)." "Application for Cash Bond Certificate" (Form MV-MLI-001) will be submitted to the department specifying the owner’s name, Alabama certificate of title number if applicable, and vehicle identification number.

(2) Persons who deposit cash with the State Treasurer in the amount of not less than fifty thousand ($50,000.00) are covered by a certificate of cash bond, in order to prove their coverage, shall carry within each vehicle the "Cash Bond Certificate" (Form MV-MLI-002) (or legible copy thereof) as issued by the Department of Revenue. The "Cash Bond Certificate" shall contain the vehicle identification number.

(3) The "Cash Bond Certificate" (or legible copy thereof) shall be displayed upon request by any law enforcement officer as provided under Section 32-7A-6(h) in order for the officer to ascertain that the vehicle owner or operator is covered under the provisions of Chapter 7A of Title 32. If the owner refuses or fails to provide proof of exemption as provided in this rule, the person shall be deemed in violation of Section 32-7A-16.

(4) In the event that the person to whom a "Cash Bond Certificate" is issued elects to and does withdraw his/her cash deposit from the State Treasurer, the owner or operator shall obtain insurance coverage as required by Chapter 7A of Title 32. Anyone who withdraws his/her cash deposit from the State Treasurer shall not display the "Cash Bond Certificate" (or legible copy thereof). Anyone displaying a "Motor Vehicle Liability Bond Certificate" knowing the Certificate has been canceled or knowing the Certificate is illegally altered, counterfeit or otherwise invalid, is in violation of Section 32-7A-16.

(5) In the event that the minimum principal of fifty thousand dollars ($50,000.00) is drawn upon as a result of any judgment rendered against the principal in the cash bond or any person responsible for the operation of the principal’s motor vehicle with his or her express or implied consent, arising from injury, death, or damage sustained through the use, operation, maintenance, or control of the motor vehicle within the State of Alabama; and the principal is reduced to an amount less than the fifty thousand dollars ($50,000.00) required by Section 32-7A-4, he/she will, within 30 calendar days, deposit cash with the State Treasurer in an amount sufficient to meet the requirements of Section 32-7A-4.

(6) In the event that the person to whom a "Cash Bond Certificate" is issued elects to withdraw the funds deposited with the State Treasurer, that person will do so on Cash Bond Withdrawal Request (Form MV-MLI-003). These funds will be held for a period of sixty (60) calendar days prior to the release of the funds. If during this sixty day period, the department is notified of pending legation of judgment rendered against the principal in the cash bond or any person responsible for the operation of the principal’s motor vehicle with his or her express or implied consent, arising from injury, death, or damage sustained through the use, operation, maintenance, or control of the motor vehicle, said funds will be held until such time that all pending claims against the fund has been resolved.

Author: Robert McCain

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Rule: Filed March 22, 2001, effective April 26, 2001.

810-5-8-.03 Use Of Motor Numbers On Insurance Cards And Other Proof Of Liability Insurance In Lieu Of Vehicle Identification Numbers. Section 32-7A-6(b)(3) and (f)(8), Code of Ala. 1975, requires the Vehicle Identification Number to be shown on insurance cards, insurance binders, certificates of liability insurance, and premium receipts. However, as vehicle manufacturers have not always placed vehicle identification numbers on motor vehicles, and motor numbers were used as the vehicle identifier for many decades, the motor number may be used in lieu of the Vehicle Identification Number if the insured vehicle does not have a Vehicle Identification Number and the vehicle is not subject to the provisions of the Alabama Certificate of Title and Antitheft Act.

Author: Robert McCain

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Rule: Filed March 22, 2001, effective April 26, 2001.

810-5-8-.04 Registration Denial–Mandatory Liability Insurance Law.

(1) If a vehicle owner, or someone authorized to register a motor vehicle on behalf of the owner, informs the official authorized to issue motor vehicle license plates that the vehicle is not insured pursuant to Section 32-7A-4, Code of Ala. 1975, (and the vehicle is not exempt from insurance requirements), the official shall refuse to register the motor vehicle(s).

(2) If a vehicle owner, or someone authorized to register a motor vehicle on behalf of the vehicle owner, fails or refuses to affirm that the vehicle(s) for which registration is being sought is insured, the registration official shall refuse to register the motor vehicle(s).

(3) If a vehicle owner, or someone authorized to register a motor vehicle on behalf of another, submits a renewal application through the mail without affirmation of insurance, the registration official shall refuse to register the motor vehicle(s).

(4) In the event someone other than the vehicle owner is authorized to register a vehicle, and that individual does not know if the vehicle is insured in accordance with Alabama law, the official authorized to issue motor vehicle license plates shall refuse to register the vehicle until the authorized individual is able to positively affirm that the vehicle is insured.

(5) In the event that a vehicle owner, or someone authorized to register a motor vehicle on behalf of the vehicle owner, informs that an insurer not qualified to transact business in Alabama insures the vehicle, the official shall refuse to register the vehicle.

(6) In the event that a vehicle owner, or someone authorized to register a motor vehicle on behalf of the vehicle owner, informs that the vehicle(s) for which registration is sought is exempt from insurance requirements pursuant to Section 32-7A-5, the official may require evidence that an exemption is applicable to the vehicle(s), and, if no evidence is provided, the official may refuse to register the vehicle until such evidence of exemption is produced and provided to the official.

(7) If an official denies registration, and subsequently the vehicle owner, or someone authorized to register a motor vehicle on behalf of the vehicle owner, is able to affirm that the vehicle(s) is insured to the satisfaction of the official, then the official may issue the registration. If the delay in registering the vehicle places the vehicle owner into a delinquency situation, the appropriate penalties, interest, etc., must be collected as a prerequisite to the issuance of the registration. Furthermore, if the registration is denied, the vehicle owner may incur law enforcement sanctions if the vehicle is operated with an expired registration or without registration credentials.

(8) In the event it is determined that a vehicle owner, or someone authorized to register a motor vehicle on behalf of the vehicle owner, provides an affirmation of insurance when the vehicle is not insured, the vehicle owner, upon conviction, may be subject to the sanctions of Section 40-12-8 for "knowingly making a false affidavit or certificate in connection with¼anything in this state for which a license is required¼."

Author: Johnny Newman

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Rule: Filed March 22, 2001, effective April 26, 2001.

810-5-8-.05 Information To Be Shown On Insurance Cards.

(1) Insurance companies issuing motor vehicle liability insurance policies shall, at a minimum, list on their insurance cards the following information:

(a) The vehicle year model;

(b) The vehicle make;

(c) The vehicle identification number (VIN) – unless the card is issued for a fleet policy or for a non-vehicle owner as provided in Section 32-7A-6(c);

(d) The name of the insured(s);

(e) The National Association of Insurance Commissioners (NAIC) code of the insurer;

(f) The policy number;

(g) The effective date and expiration date, which shall cover a period of time not to exceed 12 months.

(2) These provisions shall be effective January 1, 2001. Provided, the provision regarding the NAIC code shall be effective as insurers issue or reissue insurance cards during 2001 and thereafter.

(3) Nothing in this rule shall preclude insurers from adding other information on the insurance card.

(4) Temporary insurance cards shall not be required to have the policy number but shall contain all other required information.

(5) Insurers shall not issue a card similar in appearance, form and content to the insurance card required in Section 32-7A-6 in connection with an insurance policy that does not provide the insurance coverage required under Section 32-7A-4, Code of Ala. 1975.

Author: Johnny Newman

Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Rule: Filed April 26, 2001, effective May 31, 2001.

810-5-8-.06 Affirmation Of Motor Vehicle Liability Insurance.

(1) Section 32-7A-10(d), Code of Ala. 1975, provides "officials authorized to issue motor vehicle license plates shall require an affirmation that the owners are in compliance with the liability insurance requirements of this chapter on each registration and on each transfer of registration."

(2) The Department will place in an appropriate location on the Motor Vehicle Registration Tag and Tax Receipts an affirmation which will read, or substantially read as follows: "I/we certify/affirm that the information contained hereon is true and correct and that the vehicle described above is insured as required by Alabama law.

(3) Vehicle owners, when registering, renewing, or transferring their motor vehicle registration, by signing the Motor Vehicle Registration Tag and Tax Receipt, shall be affirming that the vehicle is currently insured in accordance with the provisions of Section 32-7A-4. Vehicle owners with fleet vehicles may sign an affirmation document listing all vehicles currently being registered as an alternative to signing each Registration Tag and Tax Receipt as affirmation, provided that the document contains the affirmation language shown in paragraph (2).

(4) If the motor vehicle is owned by more than one individual, only one signature by a vehicle owner is required.

(5) If the vehicle is being registered by someone other than an individual owner, the individual signing the Motor Vehicle Registration Tag and Tax Receipt must have personal knowledge that the vehicle is currently insured with a motor vehicle liability insurance policy (or that the vehicle is covered by a motor vehicle liability bond or a deposit of cash). County license plate issuing officials shall accept the signature provided on the receipt as prima facae evidence that the vehicle is insured, and may accept the signature as a proper affirmation of insurance.

(6) In accordance with Section 32-7A-10(d), county license plate issuing officials providing registration renewal by mail utilizing a renewal notice shall place on the renewal notice the above affirmation language with a signature line for the owner "to indicate compliance when renewing registration by mail."

(7) County license plate issuing officials offering Internet renewal shall provide a method wherein vehicle owners can electronically "sign" the affirmation of insurance.

(8) Registrants securing apportioned license plates pursuant to the International Registration Plan shall provide the affirmation by signing Schedules B or C, whichever is applicable, which shall contain the above affirmation.

(9) Motor vehicle dealers, in securing dealer license plates, are exempt from the provisions of Chapter 7A of Title 32, and thus are not required to submit an affirmation of insurance. Motor vehicle dealers, and other exempt entities specified in Section 32-7A-5, should sign the Registration Tag and Tax Receipt certifying that the information thereon is true and correct and that they meet the exemption requirements of Chapter 7A of Title 32.

(10) Motor vehicle manufacturers shall affirm on the registration receipt, or otherwise, that a motor vehicle liability policy is in effect for the manufacturer license plates issued by the Department’s Taxpayer Service Center personnel when the license plates are issued.

Author: Johnny Newman

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Rule: Filed March 22, 2001, effective April 26, 2001.

810-5-8-.07 Providing Listings To County Officials Of Vehicles Suspended Under Insurance Laws; Refusing Registration To Owners Of Suspended Vehicles; Confidentiality Of Information Regarding Suspended Persons.

(1) Pursuant to Section 32-7A-10(a), Code of Ala. 1975, the Department will provide a current list of owners whose license plates have been suspended pursuant to Section 32-7A-9 to officials responsible for license plate issuance. License plate issuing officials or the Department, at its discretion, may further furnish the list to the officials of his county responsible for assessing and collecting ad valorem taxes on motor vehicles. This listing may be provided electronically or through other procedures.

(2) Counties shall refuse to register, reregister or transfer the registration of any license plate shown on the listing. If someone is suspended for a specific license plate number, the issuing official is not authorized to issue a new license plate, replacement license plate, or distinctive or personalized license plate to the vehicle, unless the ownership of the vehicle has changed.

(3) If the registration of a vehicle shown on the listing of suspended vehicles has been updated on the state database as being reinstated by the Department, the county may issue the registration, reregistration or transfer as requested. Issuing officials are not authorized to issue registrations based on comments or documents from the vehicle owner that the reinstatement fee has been paid and proof of insurance has been furnished to the Department.

(4) The decision by the license plate issuing official to deny registration for someone who has been suspended by the Department for failing to maintain motor vehicle liability insurance may not be appealed. This is because the vehicle owner had already been afforded the opportunity to appeal the decision by the Department to suspend the registration as provided under Section 32-7A-3(d), which allows the owner a 30 calendar day period to appeal a suspension "after the rendition of any suspension."

(5) The Department interprets the provisions of Section 32-7A-10(b), providing for the refusal to register, as being a mandatory action of the issuing official. If it is found that such official registered the vehicle contrary to the provisions of Section 32-7A-10(b), said official could loose the immunity provided in Section 32-7A-13.

(6) County officials receiving information concerning the registration suspension or reinstatement status of any person shall be responsible for the confidentiality of the information pursuant to Section 32-7A-21.

Author: Johnny Newman

Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Rule: Filed March 22, 2001, effective April 26, 2001.

810-5-8-.08 Refunds Of Reinstatement Fees Generally; Refund Request Forms; Procedures To Appeal Denial Of Requests For Refund Of Reinstatement Fees.

(1) Section 32-7A-9(e), Code of Ala. 1975, provides that "refunds of reinstatement fees shall be granted in cases of duplicate payment, or as approved by the department." Anyone who is denied a refund of the reinstatement fee may appeal the denial to the administrative law judge pursuant to Section 40-2A-8, Code of Ala. 1975.

(2) Anyone seeking the refund of reinstatement fees paid shall complete an Application for Refund of Reinstatement Fees (Form MV-MLI-006) and submit the application to the Department for processing. In completing the Form, detail must be provided as to the reason the requester believes that he/she is entitled to the refund and any supporting evidence be provided (for example, provide copies of two separate remittances for the reinstatement of the same vehicle).

(3) The Department shall not approve the following requests for the refund of reinstatement fees:

(a) The vehicle has been sold.

(b) The vehicle’s ownership was changed to another entity, such as a corporation or one’s spouse or dependent, and the vehicle is now covered by liability insurance.

(c) The vehicle has been moved to a location outside Alabama, and is now registered in another jurisdiction.

(d) The vehicle has been wrecked and totaled, is junked, or is placed into storage.

(e) The petitioner, after having paid the reinstatement fee, and after having provided proof of insurance, is subsequently canceled by his/her insurance company and thus is not able to legally operate the vehicle.

(f) Other situations where reinstatement fees were paid for an uninsured, suspended vehicle.

(4) If the Department disapproves the refund request, the petitioner shall be informed in writing of the denial. The petitioner may then appeal the denial to the Administrative Law Judge pursuant to Section 40-2A-8.

Author: Johnny Newman

Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Rule: Filed March 22, 2001, effective April 26, 2001.

810-5-8-.09 Affirmation Of Motor Vehicle Liability Insurance For Apportioned Vehicles; Driver’s License Or FEIN Required; Registration Denial.

(1) Section 32-7A-10(d), Code of Ala. 1975, provides "officials authorized to issue motor vehicle license plates shall require an affirmation that the owners are in compliance with the liability insurance requirements of this chapter on each registration and on each transfer of registration." Section 32-7A-10(c) provides that with the effective date of this Section, all officials authorized by law to issue motor vehicle license plates shall obtain, when issuing or transferring motor vehicle registrations, the Alabama driver’s license number of the owner, of the vehicle, or, if the owner does not have a driver’s license number, the identification card number as provided under Section 32-6-4, Code of Ala. 1975, or for a company or other entity, the federal employer identification number."

(2) The Department will place in an appropriate location on the applications for apportioned vehicle registration an affirmation which will read, or substantially read as follows: "I/we certify/affirm as registrant or the legal representative of the registrant, that the information contained hereon is true and correct and that I have personal knowledge that the vehicle(s) described within this application are either exempt from insurance requirements due to being subject to supervision and regulation of the Alabama Public Service Commission or are insured as required by Alabama law."

(3) The Department will also place on the application form an area for the registrant to list this federal employer identification number (FEIN); provided, if a registrant does not have a FEIN, the registrant shall provide in the designated area his Alabama driver’s license number, and if the registrant does not have an Alabama driver’s license, but is licensed in another jurisdiction, the registrant shall indicate in the designated area the jurisdiction in which the driver’s license is issued.

(4) Registrants, when registering, renewing, or transferring their motor vehicle registration(s), by signing the apportioned applications, shall be affirming that the vehicle(s) is currently insured in accordance with the provisions of Section 32-7A-4, or is exempt from insurance requirements pursuant to Section 32-7A-5(3).

(5) The individual signing the apportioned registration application must have personal knowledge that the vehicle(s) is either (a) exempt from insurance requirements, or (b) currently is insured with a motor vehicle liability insurance policy (or that a motor vehicle liability bond or a deposit of cash covers the vehicle). Motor Vehicle Division personnel shall accept the signature on the apportioned applications as prima facae evidence that the vehicle(s) shown thereon is either exempt from insurance requirements or that the vehicle(s) are insured as required in Chapter 7A of Title 32.

(6) If a registrant or his or her legal representative fails to sign an application for apportioned registration (and the affirmation of insurance), or the application does not contain the insurance affirmation, the registrant may provide a separate affirmation document, which the Department may at its discretion accept as an affirmation of insurance. If a registrant fails or refuses to sign the application/affirmation of insurance, and does not provide a separate affirmation document, the Department shall refuse to register the vehicle(s) or transfer the registration.

(7) If a registrant fails or refuses to provide the federal employer identification number, or, if none, the registrant’s Alabama driver’s license number or identification card number as provided under Section 32-6-4, or if licensed outside Alabama, the jurisdiction where licensed, the Department shall refuse to register or transfer the vehicle(s) contained within the application.

(8) If the Motor Vehicle Division begins offering Internet renewal of apportioned registration, a method shall be provided wherein vehicle owners can electronically "sign" the application and affirmation of insurance and provide the federal employer identification number, Alabama driver’s license or ID card number, or jurisdiction where licensed.

(9) The provisions of this rule shall become effective January 1, 2001.

Author: Johnny Newman

Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Rule: Filed March 22, 2001, effective April 26, 2001.

APPENDIX A - CHAPTER 810-5-8

Attachment 810-5-8-.01

Motor Vehicle Liability Bond

MV-MLI-004

See Master Code for copy of form

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Form: Filed March 22, 2001, effective April 26, 2001.

APPENDIX A - Chapter 810-5-8

Attachment 810-5-8-.02

Application for Deposit of Cash

MV-MLI-001

See Master Code for copy of form

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Form: Filed March 22, 2001, effective April 26, 2001.

APPENDIX B - Chapter 810-5-8

Attachment 810-5-8-.02

Certificate of Deposit of Cash

MV-MLI-002

See Master Code for copy of form

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Form: Filed March 22, 2001, effective April 26, 2001.

APPENDIX C - Chapter 810-5-8

Attachment 810-5-8-.02

Application for Withdrawal of Deposit of Cash

MV-MLI-003

See Master Code for copy of form

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 32-7A-3(a).

History: New Form: Filed March 22, 2001, effective April 26, 2001.