HB148INTRODUCED
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HB148
KXJFAUA-1
By Representatives Pettus, Faulkner, Kirkland
RFD: Public Safety and Homeland Security
First Read: 04-Feb-25
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5 KXJFAUA-1 01/29/2025 CMH (L)bm 2025-297
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First Read: 04-Feb-25
SYNOPSIS:
Under existing law, an operator of a motor
vehicle is required to carry evidence of liability
insurance inside the vehicle.
This bill would provide that the insurance
requirements of the state of registration apply for any
motor vehicle registered in another state.
A BILL
TO BE ENTITLED
AN ACT
Relating to mandatory automobile liability insurance;
to amend Sections 32-7A-4, 32-7A-5, and 32-7A-6, Code of
Alabama 1975, to provide that the insurance requirements of
the state of registration for a motor vehicle apply for
vehicles registered in another state.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 32-7A-4, 32-7A-5, 32-7A-6, Code of
Alabama 1975, are amended to read as follows:
"§32-7A-4
(a) No person shall operate, register, or maintain
registration of, and no owner shall permit another person to
operate, register, or maintain registration of, a motor
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operate, register, or maintain registration of, a motor
vehicle designed to be used on a public highway unless the
motor vehicle is covered by a liability insurance policy, a
commercial automobile liability insurance policy, motor
vehicle liability bond, or deposit of cash.
(b)(1) For motor vehicles registered in this state, all
of the following shall apply:
a. The liability insurance policy or commercial
automobile liability insurance policy shall be issued in
amounts no less than the minimum amounts set for bodily injury
or death and for destruction of property under Section
32-7-6(c).
(2)b. The motor vehicle liability bond shall be in the
amount of not less than the minimum amounts of liability
coverage for bodily injury or death and for destruction of
property under subsection (c) of Section 32-7-6(c). The bond
shall be conditioned on the payment of the amount of any
judgment rendered against the principal in the bond or any
person responsible for the operation of the principal's motor
vehicle with his or her express or implied consent, arising
from injury, death, or damage sustained through the use,
operation, maintenance, or control of the motor vehicle within
the State of Alabama.
(3)c. The deposit of cash with the State Treasurer
shall be in the amount of not less than the minimum amounts
set for bodily injury or death and for destruction of property
under subsection (c) of Section 32-7-6(c).
(2) For motor vehicles registered in another state, the
liability insurance policy, commercial automobile liability
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liability insurance policy, commercial automobile liability
insurance policy, motor vehicle liability bond, or deposit of
cash shall conform to the requirements of the laws of the
state of registration.
(c) Only an insurer authorized to do business in this
state shall issue a policy pursuant to this section for any
vehicle subject to registration under Chapter 12 of Title 40.
Nothing hereinin this section shall deprive an insurer of any
policy defense available at common law.
(d) Notwithstanding the provisions in subsection (c),
any insurance policies issued by non-admitted insurance
companies procured through Alabama licensed surplus lines
insurance brokers, pursuant to the provisions of Section
27-10-20 for the amounts prescribed under subsection (c) of
Section 32-7-6(c), shall be deemed to be in compliance with
this chapter providedif the brokers are licensed with the
Department of Insurance and the brokers transfer all required
insurance information in the manner and frequency as
prescribed by the department."
"§32-7A-5
(a) This chapter shall not apply to any of the
following vehicles or operators:
(1) Trailers as defined in Section 40-12-240,
including, but not limited to, semitrailers, travel trailers,
boat trailers, pole trailers, and utility trailers.
(2) Motor vehicles owned and operated by the United
States or any agency thereof, the State of Alabama, or any
political or governmental subdivision thereof.
(3) Any motor vehicle that is subject to the
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(3) Any motor vehicle that is subject to the
supervision and regulation of the Federal Motor Carrier Safety
Administration or the Alabama Public Service Commission and
for which the owner or operator has filed evidence of
financial responsibility, the liability under which is not
less than that required of the operator of a motor vehicle
under the terms of this chapter.
(4) Motor vehicles covered by a certificate of
self-insurance issued by the director under Section 32-7-34.
(5) Other motor vehicles complying with laws that
require the vehicles to be insured in amounts meeting or
exceeding the minimum amounts required under Section
32-7-6(c).
(6) Implements of husbandry as defined in Section
32-8-2.
(7) Any vehicle moved solely by animal power.
(8) Special mobile equipment, as defined in Section
32-8-2.
(9) Inoperable or stored motor vehicles; provided,
however, that this does not relieve or nullify any affirmative
duty to maintain insurance coverage pursuant to a security
agreement.
(10) Motor vehicles owned by a licensed motor vehicle
dealer, wholesaler, or rebuilder and held in inventory that
are covered by a blanket liability insurance policy or
commercial automobile liability insurance policy.
(11) Vehicles properly registered in another
jurisdiction and not legally required to be registered
pursuant to Chapter 12 of Title 40.
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pursuant to Chapter 12 of Title 40.
(12)(11) Vehicles owned by a bank, a subsidiary or
affiliate of a bank, or finance company, acquired as an
incident to their regular business, that are covered by a
blanket liability insurance policy or commercial automobile
liability insurance policy.
(13)(12) Vehicles as prescribed by the commissioner
that are covered by a blanket liability insurance policy or
commercial automobile liability insurance policy.
(b) An individual on active duty with the United States
Armed Forces whose motor vehicle is registered in this state
but who, as a result of his or her military duty or assignment
is required to reside in another state during the registration
period as defined under Section 32-6-61, may satisfy the
requirements of this chapter by purchasing liability coverage
in the state where residing on active military duty or
assignment equal to or greater than the minimum amount
required by Section 32-7A-4 and providing proof of coverage.
An individual's purchase of liability coverage under this
subsection shall not invalidate his or her license or
registration in this state pursuant to Chapter 6."
"§32-7A-6
(a) Every operator of a motor vehicle subject to the
provisions of Section 32-7A-4 shall carry within the vehicle
evidence of insurance. The evidence shall be legible and
sufficient to demonstrate that the motor vehicle currently is
covered by an Alabama liability insurance policy or an Alabama
commercial automobile liability insurance policy as required
under Section 32-7A-4 , or, if the motor vehicle is registered
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under Section 32-7A-4 , or, if the motor vehicle is registered
in another state, evidence of insurance which conforms to the
requirements of the laws of the state in which the vehicle is
registered. The evidence and may include, but is not limited
to, the following:
(1) An insurance card, or temporary insurance card,
provided by the insurer or an authorized representative under
this section.
(2) The combination of proof of purchase of the motor
vehicle within the previous 20 calendar days and a current and
valid insurance card issued for the motor vehicle replaced by
such purchase.
(3) The current declarations page of an Alabama
liability insurance policy.
(4) An Alabama liability insurance binder, or legible
copy thereof, Alabama certificate of liability insurance, or
legible copy thereof; provided such document contains all
information required in this chapter.
(5) A current motor vehicle rental agreement for the
vehicle, which specifies insurance coverage by the rental
company or the operator in the minimum amounts, provided in
Section 32-7-6(c).
(b) The insurer issuing the Alabama liability insurance
policy or the Alabama commercial automobile liability
insurance policy shall provide an Alabama insurance card for
each motor vehicle insured that shall contain the following
information:
(1) The vehicle year model.
(2) The vehicle make.
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(2) The vehicle make.
(3) The vehicle identification number (VIN).
(4) The name of the insured(s).
(5) The name of the insurance company.
(6) The Alabama policy number, not required on
temporary insurance card.
(7) The effective date and expiration date, which shall
cover a period of time not to exceed 12 months.
(8) Insurance company's NAIC number.
(c) Notwithstanding the foregoing, if the insurance
card is issued for a commercial automobile liability insurance
policy, the card may state "FLEET," "COMMERCIAL," "COMMERCIAL
POLICY," or "COMMERCIAL EXEMPT" in lieu of vehicle years,
makes, and VIN'sVINs if vehicle years, makes, and VIN'sVINs
are not captured by the insurer. If the vehicle years, makes,
and VIN'sVINs are captured by the insurer, then the insurer
may provide such information on the insurance card, but must
state "FLEET," "COMMERCIAL," "COMMERCIAL POLICY," or
"COMMERCIAL EXEMPT" on the insurance card. If the insurance
card is issued for a nonowner policy, the card may state
"NONOWNER POLICY" in lieu of the vehicle year, make, and VIN.
(d) All required information shall appear on the front
of the card. The insurance card may include other information
at the discretion of the insurer. Insurance companies may
allow authorized representatives to issue temporary insurance
cards to satisfy the requirements of this chapter. Temporary
insurance cards are not required to have the policy number but
shall contain all other required information.
(e) No insurer shall issue a card, similar in
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(e) No insurer shall issue a card, similar in
appearance, form, and content to the insurance card required
under this section, in connection with an Alabama insurance
policy that does not provide the liability insurance coverage
required under Section 32-7A-4.
(f) Insurance binders, certificates of liability
insurance, and other evidence of insurance as required under
this section, must meet the following requirements (except
where noted):
(1) Insurance company name.
(2) Alabama Policy number - not required on a binder or
temporary insurance card.
(3) Effective date.
(4) Expiration date.
(5) Name of insured(s).
(6) Vehicle year model - not required if issued for a
commercial automobile liability insurance policy or for a
nonowner policy.
(7) Vehicle make - not required if issued for a
commercial automobile liability insurance policy or for a
nonowner policy.
(8) Vehicle identification number - not required if
issued for a commercial automobile liability insurance policy
or for a nonowner policy.
(9) Signature of authorized representative.
(g) The combination proof of purchase of a motor
vehicle, as provided in subsection (a) above, shall consist of
a legible copy of the legal bill of sale if the motor vehicle
is not subject to the provisions of the Alabama Uniform
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is not subject to the provisions of the Alabama Uniform
Certificate of Title and Antitheft Act, or the owner's copy of
the application for certificate of title for a motor vehicle
subject to the provisions of the Alabama Uniform Certificate
of Title and Antitheft Act, or an Alabama certificate of title
issued in the name of the vehicle owner or operator.
(h) The evidence of insurance shall be presented upon
request made by any law enforcement officer wearing a uniform
or presenting a badge, or both , or other sign of authority.
Any person who fails or refuses to comply with such request is
in violation of Section 32-7A-16 unless evidence of motor
vehicle liability insurance or other evidence of financial
responsibility as provided in this chapter is verified through
the online insurance verification system. Any person who
presents evidence of insurance, knowing there is no valid
liability insurance in effect on the motor vehicle as required
under Section 32-7A-4 or knowing the evidence of insurance is
illegally altered, counterfeit, or otherwise invalid, is in
violation of Section 32-7A-16.
(i) The evidence of insurance may be provided in either
a tangible format or in an electronic format. Acceptable
electronic formats include the display of electronic images on
a cellular phone or other electronic device.
(j) The use of a cellular phone or other electronic
device to display evidence of insurance does not constitute
consent for law enforcement or other governmental employees to
access any other content on the electronic device. Any law
enforcement officer or other governmental employee presented
with an electronic device pursuant to this section shall be
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with an electronic device pursuant to this section shall be
subject to the provisions of Section 36-1-12 for damages to
the electronic device resulting from acts taken when viewing
the device pursuant to this section."
Section 2. This act shall become effective on October
1, 2025.
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