Unit 06, Lesson04 - The Financial Responsibility Act
THE FINANCIAL RESPONSIBILITY ACT
The Financial Responsibility Act is designed to protect the public from losses due to motor vehicle crashes. This law requires that you have your vehicle or yourself, as a driver, insured. Failure to obey this law could result in the loss of your driver license, motor vehicle registration, and license plates. To regain these items, you must provide proof of adequate financial security; pay required reinstatement fees, and fines up to $1,000.
Providing Security After a Crash
There are two ways you can provide the required security after a crash in which you were the at-fault driver:
- Depositing money with the Financial Responsibility Section in the amount of the loss suffered by the other parties involved.
- Showing that at the time of the crash you were covered by automobile liability insurance. If you were not covered by such insurance, you must file one of the following:
- Evidence that you have been released from liability by all parties involved in the crash.
- Evidence that you have agreed in writing to make payments for any damages or injuries suffered by the other party or parties.
- Evidence that you have been found not liable by a court of law.
- Evidence that the operator was in compliance with the operator’s security requirement.
If your driving privilege is suspended under this act, it may be reinstated by complying with one of the above listed procedures or one year following the effective date of suspension, if no civil action arising out of the accident has been instituted.
Unsatisfied Judgments
A court may render a judgment against you for damages to other injured parties. If this judgment is not satisfied within 60 days after the court decision, your driving privilege will be taken away. This rule may apply not only to drivers, but also to those who own or maintain the vehicle. If your license is taken away, the suspension will be in effect until the judgment is satisfied and you have filed “future proof” of financial responsibility in the form of an SR-22.
Future proof is evidence that you will be able to pay for any damage to others if you are responsible for a future accident. It is required if you have failed to satisfy a judgment as explained above or if your driving privilege is suspended or revoked for a violation of the motor vehicle laws. This proof must be maintained for THREE YEARS following the date of the suspension or revocation or, in the case of an unsatisfied judgment, three years from the date of reinstatement.
The most common way to file “future proof” is to furnish evidence that you are covered by an SR-22 automobile liability insurance policy. You may obtain additional information on financial responsibility by contacting the Customer Service Section, Driver License Division. The telephone number is (801) 965-4437.
Uninsured Motorist
If a vehicle owner is convicted of driving without insurance, is suspended for driving without insurance, or is identified in the computer files as having no insurance, the Department of Motor Vehicles is required to revoke the vehicle registration unless insurance is purchased within 30 days.
NOTE: The law states that ANY TIME anyone operates a motor vehicle, proof of insurance for the vehicle and/or the operator MUST BE IN THE VEHICLE and must be shown to any peace officer that asks to see it.
RELEASE OF CRASH INFORMATION
Crash reports are protected and may be released only as provided by the law. A report may be released to persons involved in the crash, anyone they name as a representative, parents or legal guardians, their attorney or insurance company, a licensed private investigator, or the media. Information released to the news media is limited to name, age, sex, city of residence, make and model of vehicles, whether or not the vehicles were insured, and the location and description of the crash.
06.04 The Financial Responsibility Act Submit Your Insurance Quote Assignment
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