IN SB0186

Requires insurers to notify the Indiana Bureau of Motor Vehicles within 10 business days when a motor vehicle liability policy is canceled or expires, including policyholder information and vehicle identification details

Mandates insurers to simultaneously notify policyholders that the BMV is being informed of the cancellation, warning them of the requirement to maintain continuous financial responsibility

Requires policyholders to notify the BMV within 20 business days of receiving cancellation notice about how they will maintain financial responsibility or that they will cease operating the vehicle

Authorizes the BMV to immediately suspend vehicle registration if a policyholder fails to respond within the 20-day period; registration can be reinstated upon compliance

Increases penalties for operating a vehicle without financial responsibility from a Class A infraction to a Class C misdemeanor, and from a Class C misdemeanor to a Class B misdemeanor for repeat offenders