York Town News
Registration law is repealed
By Jennifer L. Saunders
YORK - For local residents and police alike, a state law commonly known as the "insurance cancellation notification law" was fast becoming the cause of a lot of stress.
Just before the end of the current legislative session, however, a vote was taken to repeal the legislation, which had been designed to combat the problem of drivers allowing their insurance to lapse but was determined by the Legislature and Secretary of State Matthew Dunlap to be, in essence, more trouble than it was worth.
The state's action mirrored concerns voiced by local residents who faced charges for suspended registrations where they had simply changed insurance companies or cancelled a policy when trading in a vehicle and the updated information on the new insurance had not reached Augusta.
The issue was exacerbated by the fact that the state and police have a "real time" system, where the moment notification of expired insurance was received, the suspension was issued, explained York Police Chief Douglas Bracy. If there was an error in noting the change of the insurance policy - or the notification did not arrive at the same time - drivers would have their registrations suspended while their insurance, in fact, had not lapsed.
According to the Secretary of State's Office, the law required insurers to notify the state when an insurance policy went unpaid or was cancelled. Registrants would have to notify the state that a new policy was in effect. The state had to receive either notice of a new policy or an explanation as to why no new policy was issued, or the person's registration would be suspended.
"The problem is that nothing catches up with you to let you know it's under suspension," Bracy explained when asked about the process as it stood prior to the change in the law.
So, he explained, local police were finding motorists that they pulled over for routine traffic stops with suspended registrations. In turn, the motorists never knew their registrations had been suspended.
"This seemed like a solid approach when the law was enacted," Dunlap explained of the original intent of the legislation, but noted that in reality, "the law actually created a number of problems for Maine consumers, automobile insurance companies and the Bureau of Motor Vehicles. The simple fact is that there are a variety of very legitimate reasons for a person to cancel an insurance policy - selling their car, changing insurance providers to secure a better premium rate, and so on. This law had no method for sorting those reasons out from the ones the law was initially aimed at: drivers who go without insurance simply because they refuse to pay for even the most basic coverage mandated by law."
Before the problems of notification with the insurance cancellation notification law came to light, Bracy said, a suspended registration had usually been considered by police to be a red flag for someone attempting to dodge insurance payment or court-mandated fees. In recent months, however, Bracy said police became aware that was no longer the case.
"When we see suspended registrations and the driver has proof of insurance, we are much more careful," he said, adding that for those who are reported as being under suspension in the state's database, the inconveniences of a traffic charge, possible vehicle towing and a court date are extremely frustrating.
According to a statement from the Secretary of State's Office, the law never did what it was intended to do.
"This law was aimed at reducing the number of uninsured motorists on Maine's highways," Dunlap said. "It never did that, so it failed to improve the safety of Maine motorists as intended."
The repeal of the requirement that insurers notify the Secretary of State's Office when that insurance is cancelled, terminated or lapses was signed into law by Gov. John Baldacci on June 19 with an emergency provision, making it effective immediately.
For more about the changes in the law, visit http://www.maine.gov/ and follow the links to the Secretary of State.
