Senate Bill 445 Summary

• Requires insurance companies to notify the Indiana Bureau of Motor Vehicles within 10 business days when canceling a motor vehicle liability policy covering an Indiana-registered vehicle, including policyholder name and vehicle identification information.

• Requires policyholders to notify the Bureau of Motor Vehicles within 20 business days of receiving cancellation notice, either by obtaining new insurance coverage or by certifying they will cease operating the vehicle or maintain financial responsibility through alternative means.

• Authorizes the Bureau to immediately suspend a vehicle registration if the policyholder fails to provide required notification within the 20-business-day deadline; registration may be reinstated upon receipt of proper notice from the policyholder.

• Changes the penalty for operating a motor vehicle without financial responsibility from a Class A infraction to a Class C misdemeanor, and increases it to a Class B misdemeanor if the person has a prior unrelated conviction under this section.

• Effective July 1, 2011 for penalty changes; July 1, 2012 for insurance cancellation notification requirements.