Oklahoma Senate Approves Uninsured Motorist Bill

February 19, 2016

The Oklahoma Senate approved has approved a bill that requires drivers whose licenses have been suspended due to lack of auto insurance to show proof of insurance to the Department of Public Safety (DPS) in order to have their lack-of-insurance suspension lifted.

Under current law the Department of Public Safety (DPS) suspends the license of anyone found driving without insurance.

Under Senate Bill 260, by Sen. Ron Sharp, such offenders must provide proof of insurance to the DPS in the form of an SR-22 form before the suspension can be removed.

An SR-22 form is a certificate issued by an individual’s insurance company affirming that the person has auto insurance that meets the state’s minimum requirements. SB 260 requires that the SR-22 be maintained with DPS for three years.

Anyone who fails to maintain their SR-22 with DPS will have their driving privileges suspended again until proof of insurance is re-filed.

A 2014 study by the Insurance Research Council estimates that nearly 26 percent of vehicles on Oklahoma roads are operating without insurance, totaling approximately 721,000 vehicles. The national average is just under 13 percent.

At least 36 states use some form of SR-22 reporting as a tool to combat uninsured motorists.
The bill also states that when an insurance company has certified an insurance policy with an SR-22, the policy can only be terminated if the company provides notice to DPS within 10 days after termination.

“Current law is allowing offenders to simply buy insurance and drop it within days just to get their license back. This bill ensures that insurance companies let DPS know when policies are dropped so that they can make sure those individuals aren’t driving without insurance,” said Sharp.

SB 260 provides exemptions in which DPS must waive the SR-22 filing requirement including if the person dies or is incapacitated or if the person surrenders his or her vehicle registration.

The Oklahoma Insurance Department estimates, based on the average statewide premium for minimum auto liability coverage and the premium tax rate of 2.25 percent, that if the uninsured motorist rate were reduced to 15 percent (still above the national average), Oklahoma would see just over $7.7 million in additional premium tax revenue.

SB 260 now moves to the House.

Source: Oklahoma Senate

Topics Oklahoma Politics

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