NC S202

Requires the Division of Motor Vehicles to reconcile all insurance notices and not record a lapse in financial responsibility if the owner maintains continuous coverage through another policy not subject to the termination notice.

Allows the Division to notify vehicle owners of insurance lapses electronically or by mail, requiring owners to respond within 10 days explaining how they maintained continuous financial responsibility.

Exempts owners from penalties if they respond timely and can prove they sold or transferred the vehicle within 10 days of the insurance termination, or that the vehicle was not operated due to damage, mechanical defect, or possession transfer delays.

Requires owners claiming no penalty to provide proof of returning the North Carolina registration plate or submitting an affidavit that the plate was lost, stolen, or destroyed.

Directs the Division of Motor Vehicles to develop a plan for accepting electronic documentation from insurers regarding coverage status and report the plan to legislative committees by October 1, 2021.