Sec. 1. 29-A MRSA §1611, sub-§3-A is enacted to read:

3-A.__Failure to maintain insurance.__An insurance company that becomes aware of a client who allows the insurance to lapse, cancels the insurance or in any way fails to meet the requirements of this section for a motor vehicle registered in this State immediately shall notify the Secretary of State of this occurrence and include the identity of the motor vehicle owner and the registration number of the motor vehicle.__The Secretary of State shall notify the motor vehicle owner by registered mail that the owner has 7 days from the date of the notice to provide to the clerk of the municipality in which the motor vehicle owner lives one of the following:

A.__The motor vehicle's registration plates;

B.__Proof of valid, current insurance for the motor vehicle; or

C.__A properly executed affidavit by the owner stating that the motor vehicle is a recreational vehicle that is used seasonally and that the motor vehicle will not be operated for a specific period of time.__The motor vehicle owner shall obtain valid insurance for the recreational motor vehicle before that vehicle is operated.__A violation of this paragraph is a Class E crime.

The clerk immediately shall inform the Secretary of State if the motor vehicle owner returned the plates, provided proof of insurance or provided an affidavit pursuant to paragraph C.__If the clerk informs the Secretary of State that the plates were returned or if the Secretary of State receives no notice from the clerk within 15 days of the date of the notice, the Secretary of State shall suspend the motor vehicle's registration and send notice to both the motor vehicle owner and the sheriff of the county in which the motor vehicle owner lives.

SUMMARY

This bill requires in the instance where a motor vehicle owner cancels or allows the motor vehicle's insurance to lapse that:

1. The insurance company immediately notify the Secretary of State;

2. The Secretary of State instruct the motor vehicle owner