Broad Form Insurance

Insurers,

The James Lee Atwood law is intended to impose insurance requirements on motor vehicles, not just the individual registrant of a given vehicle. In addition to Section 210 below, Section 205 provides,

The program shall:   (1) Be an accessible common carrier based system for online electronic verification     and data transfers of proof of motor vehicle liability insurance in accordance with IICMVA specifications and standards;  (2) Verify, on an on-demand basis minus reasonable downtime for system maintenance as agreed upon by the department of revenue, or its designated agent, and the insurer, the liability insurance status of a motor vehicle, whose status is determined: (A) As of the time of the inquiry; or

(B) At other times not exceeding six (6) months prior to the inquiry unless otherwise agreed upon by the commissioner of revenue, or its designated agent, and the insurer;  (3)  (A) In an effort to confirm the liability insurance status of a motor vehicle in instances where the program is unable to verify the liability insurance status, require automobile liability insurers that choose only to utilize the IICMVA model to:  (i) Accept unknown carrier requests; or  (ii) Provide upon request either:  (a) A full book of business as described in § 55-12-207, current to the date of the request; or  (b) A list of vehicle identification numbers of all vehicles currently insured by the automobile liability insurer;  (B) The information in subdivision (3)(A)(ii) shall be requested no more frequently than quarterly and the automobile liability insurer may freely choose between the options described in subdivisions (3)(A)(ii)(a) and (b).

This section and the section and the section below all contemplate that the motor vehicle itself will be insured. I’ve also attached the portion of the T&R(Title & Registration) Guide dealing with Insurance Verification which states: “If the system cannot confirm coverage for a motor vehicle, the vehicle will be marked as unconfirmed and the driver should expect to receive a notice from the Department.” The broad form insurance alone is not sufficient to comply with 55-12-201, et seq

 

Tenn. Code Ann. § 55-12-210

TENNESSEE CODE ANNOTATED

© 2017 by The State of Tennessee

All rights reserved

*** Current through Chapter 85 of the 2017 Regular Session. The commission may make editorial changes to this version and may relocate or redesignate text. Those changes will appear on Lexis.com and Lexis Advance after the publication of the certified volumes and supplements. Pursuant to TCA sections 1-1-110, 1-1-111, and 1-2-114, the Tennessee Code Commission certifies the final, official version of the Tennessee Code. Until the annual issuance of the certified volumes and supplements, references to the updates made by the most recent legislative session should be to the Public Chapter and not TCA. ***

Title 55  Motor and Other Vehicles  
Chapter 12  Financial Responsibility  
Part 2  Insurance Verification Program ("James Lee Atwood Jr. Law")

Tenn. Code Ann. § 55-12-210  (2017)

55-12-210.  Notice to motor vehicle owner of noncompliance -- Penalties for failure to comply within specified time -- Prohibition against false or fraudulent statements -- Part does not affect other actions or penalties -- Eligibility for notice.   

(a)  (1) If there is evidence based on either the IICMVA model or the full book of business download process described in § 55-12-207 that a motor vehicle is not insured, the department of revenue shall, or shall direct its designated agent to, provide notice to the owner of the motor vehicle that the owner has thirty (30) days from the date of the notice to provide to the department of revenue:       

    (A) The owner or operator's proof of financial security in a form approved by the department of revenue;      

    (B) Proof of exemption from the owner or operator's financial security requirements under this chapter;       

    (C) Proof that the motor vehicle is no longer in the owner's possession; or       

    (D) A statement, under penalty of perjury, that the vehicle is not in use on any public road.    

(2) The notice described in subdivision (a)(1) shall include a statement that if the owner of the motor vehicle fails to comply with the requirements set forth in the notice, the owner of the motor vehicle shall be subject to a twenty-five-dollar coverage failure fee. The department of revenue or its designated agent shall transmit the notice to the owner of the motor vehicle by mailing the notice to the most recent street address or electronic mail address provided to the department of revenue by the owner.    

(3) Prior to issuing the notice described in this subsection (a), the department of revenue is authorized to provide a request for information to the owner of the motor vehicle to aid in determining whether the vehicle is uninsured.    

(4) Notwithstanding subdivision (a)(1), if the total number of notices required to be provided under this section in a given period is determined by the department of revenue to be administratively prohibitive, the department of revenue is authorized to provide notices to an administratively practicable number of motor vehicle owners, each of whom shall be selected randomly.

(b)  (1) If an owner of a motor vehicle fails to provide satisfactory proof or a statement as described in subsection (a), the department of revenue shall:       

       (A) Impose on the owner of the motor vehicle a twenty-five-dollar coverage failure fee. Of this fee, five dollars ($5.00) shall be distributed to the county clerk of the county in which the motor vehicle is registered, five dollars ($5.00) shall be distributed to the department of safety, and the remainder shall be deposited into the uninsured motorist identification restricted fund created in § 55-12-213. The revenues distributed to the county clerk shall be earmarked for the county clerk's work in administration of the vehicle insurance verification program and shall not revert to the general fund at the end of the budget year if unexpended; and       

       (B) Provide a notice to the owner of the motor vehicle stating that the owner must pay the coverage failure fee described in subdivision (b)(1)(A) and provide satisfactory proof or a statement as described in subsection (a) within thirty (30) days of the date of the notice.    

(2) The notice described in subdivision (b)(1)(B) shall include a statement that if the owner of the motor vehicle fails to comply with the requirements set forth in the notice, the owner of the motor vehicle shall be subject to a one hundred-dollar continued coverage failure fee and suspension or revocation of the owner's motor vehicle registration.

(c) If the owner of the motor vehicle fails to comply with the notice described in subdivision (b)(1)(B), the department of revenue:   

      (1) Shall impose on the owner of the motor vehicle a one hundred-dollar continued coverage failure fee, which shall be in addition to the coverage failure fee imposed under subdivision (b)(1)(A). Of this continued coverage failure fee, ten dollars ($10.00) shall be distributed to the county clerk of the county in which the motor vehicle is registered, five dollars ($5.00) shall be distributed to the department of safety, and the remainder shall be deposited into the uninsured motorist identification restricted fund created in § 55-12-213. The revenues distributed to the county clerk shall be earmarked for the county clerk's work in administration of the vehicle insurance verification program and shall not revert to the general fund at the end of the budget year if unexpended;    

      (2) Shall suspend or revoke the motor vehicle owner's registration; and    

      (3)  (A) Shall provide notice to the motor vehicle owner of the legal consequences of operating a motor vehicle with a suspended or revoked registration and without owner or operator's proof of financial security as required by this chapter, and instructions on how to effect the reinstatement of the motor vehicle owner's registration; or       

             (B) May direct a designated agent to provide the notice and instructions described in this subdivision  (c)(3).

(d) Any action by the department of revenue to suspend or revoke the registration of a motor vehicle under this section may be in addition to an action by a law enforcement agency to impose penalties under this chapter.

(e)  (1) A person shall not provide a false or fraudulent statement to the department of revenue or its designated agent.    

      (2) In addition to any other penalties, a violation of subdivision (e)(1) is a Class B misdemeanor.

(f) This part does not affect other actions or penalties that may be taken or imposed for violation of the owner or operator's financial security requirements of this chapter.

(g) If the vehicle is no longer insured by the automobile liability insurer of record and no other insurance company using the IICMVA model indicates coverage after an unknown carrier request under § 55-12-205(3), the owner of the motor vehicle becomes eligible for notice as described in subsections (a) and (b).

 

All insurance companies that write policies in the state of Tennessee please be advised the state will not honor Broad Form Insurance unless there is a way to tie it directly to a specific VIN.

In summary:

Every actively registered VIN in Tennessee that is driven on Tennessee roadways has to carry the minimum of liability insurance and this must be reflected in the monthly FBOB or the registrant will face fines and the registration will be suspended.

 

 

 

 

 

 

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