AN ACT relating to insurance requirements for certain vehicle business licensees.
If passed, the bill will amend existing statutes concerning the licensure of motor vehicle dealers to include stricter insurance provisions. It will require that the insurance policy provides a minimum of $250,000 for bodily injury or death of any one person, and $500,000 for bodily injury or death in any one accident. Additionally, the bill stipulates conditions under which coverage must be maintained, including the requirement for written notice of cancellation to be provided to the commission. Such changes aim to enhance consumer protection by ensuring that licensed dealers carry sufficient insurance coverage.
SB18 focuses on the insurance requirements for certain vehicle business licensees in the Commonwealth of Kentucky. The bill mandates that applicants for motor vehicle dealer licenses, new recreational vehicle dealer licenses, motor vehicle auction dealer licenses, or wholesaler licenses must secure an indemnifying bond or insurance policy. This policy must meet specified coverage requirements for public liability and property damage, ensuring that any vehicle owned or offered for sale has adequate insurance before a license can be issued or renewed.
The sentiment around SB18 appears largely supportive among industry stakeholders who argue that the legislation will provide greater protection for consumers engaging with motor vehicle dealers. Proponents highlight that securing adequate insurance can help mitigate the financial risks associated with vehicle transactions. However, there may be concerns from smaller businesses regarding the potential increase in operational costs stemming from the required insurance policies, as compliance will necessitate additional resources and potential financial burdens.
Key points of contention may arise concerning the specifics of the coverage limits and the implications for small dealers. Some may argue that the proposed amounts are excessive and may hinder new market entrants or small-scale dealers from operating effectively. Evaluating the balance between sufficient consumer protection through insurance and maintaining accessibility for smaller, often family-owned dealerships will be critical in the discussions surrounding SB18.