ALABAMA DEPARTMENT OF REVENUE

1 REVENUE Chapter 810-5-8. ALABAMA DEPARTMENT OF REVENUE . MOTOR VEHICLE DIVISION. ADMINISTRATIVE CODE. CHAPTER 810-5-8. MANDATORY LIABILITY INSURANCE. TABLE OF CONTENTS. Issuance Of Certificate Of Motor Vehicle Liability Bond Issuance Of Certificate Of Cash Bond And Satisfaction Of Judgments Use Of Motor Numbers On Insurance Cards And Other Proof Of Liability Insurance In Lieu Of Vehicle Identification Numbers Registration Denial Mandatory Liability Insurance Evidence Of Insurance Requirements Mandatory Liability Insurance (MLI). Registration Reinstatement Procedures Vehicles Exempt From The Mandatory Liability Insurance Law Refunds Of Mandatory Liability Insurance (MLI) Reinstatement Fees Identification Documentation Required For Registration Mandatory Liability Insurance (MLI). Questionnaire And Notice Of Suspension Administratively Removing Suspensions (Repealed 6/10/11). Appendix A.

2 Appendix B. Appendix C. Issuance Of Certificate Of Motor Vehicle Liability Bond. (1) Section 32-7A-4, Code of Ala. 1975, provides an alternative to motor vehicle liability insurance requirements for motor vehicles covered by a motor vehicle liability bond and states the 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 . Supp. 3/31/18 5-8-1. Chapter 810-5-8 REVENUE (2) The Motor Vehicle Liability Bond (Form MV-MLI-004). shall be filed with the DEPARTMENT of REVENUE 's Motor Vehicle Division. The bond must be executed by a company qualified to conduct a surety business in ALABAMA , and 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 (3) In order to prove their coverage, persons who purchase a motor vehicle liability bond, shall carry within each vehicle the Motor Vehicle Liability Bond Certificate (Form MV-MLI-005) (or legible copy thereof) as issued by the DEPARTMENT of REVENUE . The Motor Vehicle Liability Bond Certificate shall contain the vehicle identification number. (4) The Motor Vehicle Liability Bond Certificate (or legible copy thereof) shall be displayed upon request by any law enforcement officer as provided under Section 32-7A-6(h) in order for the officer to ascertain that the vehicle owner or operator is covered under the provisions of Chapter 7A of Title 32. If the owner refuses or fails to provide proof of exemption as provided in this rule, the person shall be in violation of Section 32-7A-16. (5) In the event that the person to whom a Motor Vehicle Liability Bond Certificate is issued, elects to and does terminate the bond, the person is canceled by the surety, or the bond otherwise becomes invalid, the owner or operator shall obtain insurance coverage as provided by Chapter 7A of Title 32.

4 Anyone who cancels or has his/her liability bond canceled shall not display the Motor Vehicle Liability Bond Certificate (or legible copy thereof). Anyone displaying a Motor Vehicle Liability Bond Certificate knowing the Certificate has been canceled or knowing the Certificate is illegally altered, counterfeit or otherwise invalid, is in violation of Section 32-7A-16. Authors: Sherry Helms, Robert McCain Statutory Authority: Code of Ala. 1975, 40-2A-7(a)(5), 32-7A-3(a). History: New Rule: Filed March 22, 2001; effective April 26, 2001. Amended: Filed January 6, 2016; effective February 10, 2016. Supp. 3/31/18 5-8-2. REVENUE Chapter 810-5-8. Issuance Of Certificate Of Cash Bond And Satisfaction Of Judgments. (1) Section 32-7A-4, Code of Ala. 1975, provides an alternative to motor vehicle liability insurance requirements for motor vehicles covered by a deposit of cash with the State Treasurer and states the cash 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 as detailed in Section 32-7-6.

5 " The Application for Cash Bond Certificate (Form MV-MLI-001) shall be submitted to the DEPARTMENT specifying the owner's name, ALABAMA certificate of title number, if applicable, and vehicle identification number. (2) Persons who deposit cash with the DEPARTMENT in the amount of not less than the minimum amounts of liability coverage for bodily injury or death and for destruction of property ad detailed in Section 32-7-6 to be covered by a certificate of cash bond shall carry within each vehicle the Cash Bond Certificate (Form MV-MLI-002). (or legible copy thereof) as issued by the DEPARTMENT of REVENUE in order to prove their coverage. The Cash Bond Certificate shall contain the vehicle identification number. (3) The Cash Bond Certificate (or legible copy thereof). shall be displayed upon request by any law enforcement officer as provided under Section 32-7A-6 in order for the officer to ascertain that the vehicle owner or operator is covered under the provisions of Chapter 7A of Title 32.

6 If the owner refuses or fails to provide proof of exemption as provided in this rule, the person shall be deemed in violation of Section 32-7A-16. (4) In the event that the person to whom a Cash Bond Certificate is issued elects to and does withdraw his/her cash deposit from the DEPARTMENT , the owner or operator shall obtain insurance coverage as required by Chapter 7A of Title 32. Anyone who withdraws his/her cash deposit from the DEPARTMENT shall not display the Cash Bond Certificate (or legible copy thereof). Anyone displaying a Motor Vehicle Liability Bond Certificate knowing the Certificate has been canceled or knowing the Certificate is illegally altered, counterfeit or otherwise invalid, is in violation of Section 32-7A-16. (5) In the event that the minimum principal on deposit is drawn upon as a result of any judgment rendered against the principal in the cash 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 Supp.

7 3/31/18 5-8-3. Chapter 810-5-8 REVENUE use, operation, maintenance, or control of the motor vehicle within the State of ALABAMA ; and the principal is reduced to an amount less than the minimum amount required by Section 32-7A-4, he/she will, within 30 calendar days, deposit cash with the DEPARTMENT in an amount sufficient to meet the requirements of Section 32-7A-4. (6) In the event that the person to whom a Cash Bond Certificate is issued elects to withdraw the funds deposited with the DEPARTMENT , that person will do so on the Cash Bond Withdrawal Request (Form MV-MLI-003). These funds will be held for a period of sixty (60) calendar days prior to the release of the funds. If during this sixty day period, the DEPARTMENT is notified of pending legation of judgment rendered against the principal in the cash 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, said funds will be held until such time that all pending claims against the fund has been resolved.

8 Authors: Sherry Helms, Robert McCain Statutory Authority: Code of Ala. 1975, 40-2A-7(a)(5), 32-7A-3(a). History: New Rule: Filed March 22, 2001, effective April 26, 2001. Amended: Filed January 6, 2016; effective February 10, 2016. Use Of Motor Numbers On Insurance Cards And Other Proof Of Liability Insurance In Lieu Of Vehicle Identification Numbers. Section 32-7A-6(b)(3) and (f)(8), Code of Ala. 1975, requires the Vehicle Identification Number to be shown on insurance cards, insurance binders, certificates of liability insurance, and premium receipts. However, as vehicle manufacturers have not always placed vehicle identification numbers on motor vehicles, and motor numbers were used as the vehicle identifier for many decades, the motor number may be used in lieu of the Vehicle Identification Number if the insured vehicle does not have a Vehicle Identification Number and the vehicle is not subject to the provisions of the ALABAMA Certificate of Title and Antitheft Act.

9 Author: Robert McCain Statutory Authority: Code of Ala. 1975, 40-2A-7(a)(5), 32-7A-3(a). History: New Rule: Filed March 22, 2001, effective April 26, 2001. Registration Denial Mandatory Liability Insurance. Supp. 3/31/18 5-8-4. REVENUE Chapter 810-5-8. (1) If a vehicle owner(s), or someone authorized to register a motor vehicle on behalf of the owner(s), informs the license plate issuing official that the vehicle is not insured pursuant to Section 32-7A-4, Code of Ala. 1975, (and the vehicle is not exempt from insurance requirements), the license plate issuing official shall refuse to register the motor vehicle(s). (2) If a vehicle owner(s) or someone authorized to register a motor vehicle on behalf of the owner(s), submits a renewal application through the mail, in person or via the internet (online). without evidence of insurance, the license plate issuing official shall refuse to register the motor vehicle.

10 (3) In the event that a vehicle owner(s), or someone authorized to register a motor vehicle on behalf of the vehicle owner(s), informs the license plate issuing official that the motor vehicle is insured by an insurer not authorized to do business in ALABAMA , the license plate issuing official shall refuse to register the vehicle. (4) If a license plate issuing official denies registration, and subsequently the vehicle owner(s), or someone authorized to register a motor vehicle on behalf of the vehicle owner(s), provides evidence that the vehicle is insured to the satisfaction of the official, then the official may issue the registration. If the delay in registering the vehicle places the vehicle owner(s) into a delinquency situation, the appropriate penalties, interest, etc., must be collected as a prerequisite to the issuance of the registration. Furthermore, if the registration is denied, the vehicle owner(s) may incur law enforcement sanctions if the vehicle is operated with an expired registration or without registration credentials.