Wednesday, March 5, 1997 | 11:59 a.m.
CARSON CITY -- A law that fined motorists $50 for failing to tell the state whether they had auto insurance may be repealed.
An Assembly committee agreed Tuesday that an estimated 6,000 car owners who were penalized should receive refunds.
The Assembly Transportation Committee told the state Department of Motor Vehicles and Public Safety to be more "humane" in the treatment of the public in the insurance verification plan, which has raised a storm of controversy.
If the department follows the orders, Committee Chairwoman Vonne Chowning, D-Las Vegas, said she was confident the public would see the agency "in white hats instead of black hats."
Department Deputy Director Douglas Kraemer agreed and said the department wants to go after those who are the major violators of the mandatory insurance law and not the person who had a policy for 20 years and let it lapse a few days.
The committee did not take a final vote on Assembly Bill 36 but adopted the amendments, which rewrote the bill. It now eliminates from law the $50 fine for failing to answer a letter from the department that seeks to verify if the car owner has insurance.
Kraemer said the department is asking for an attorney general's opinion on whether it can refund the estimated $300,000 paid by motorists who were insured but maintained they didn't get the verification letter or who said they returned it.
The agency has a verbal opinion it can make the refunds but wants it in writing. Kraemer estimated the agency could be ready in six to seven weeks to start making the $50 refunds.
An affected motorist would sign an affidavit at a motor-vehicle office, which would then check to determine if the person was insured at the time the notice was sent out.
The time limit on the refunds would be one year.
It will probably be two weeks before the committee takes a final vote and sends it to the floor. If passed, it still must go to the Senate.
Other changes recommended by the committee include extending from 10 days to 20 days the time a motorist has to reply to the state's notice. Kraemer said if the fine is repealed for not returning the notice, the state would still be in a position to move ahead to suspend a license until proof of insurance is furnished.
The bill would also stop insurance agents from selling auto policies of less than six months. At present, drivers can buy policies for as short as one month. Consumers would still have the right to cancel the policy within 10 days to shop around for another company.
Chowning, who voted against the six-month requirement, said it affects those in the high-risk categories. "It will affect males under 27 years old," she said, referring to the higher premiums paid by this group.
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