TITLE 31
Motor and Other vehicles
CHAPTER 31-31
Safety Responsibility Administration Security Following Accident
SECTION 31-31-7
§ 31-31-7 Requirements as to policy or
bond.
(a) No policy or bond shall be effective under § 31-31-6 unless issued by
an insurance company or surety company authorized to do business in this state,
except as provided in subsection (b) of this section, nor unless the policy or
bond is subject, if the accident has resulted in bodily injury or death, to a
limit, exclusive of interest and costs, of not less than twenty-five thousand
dollars ($25,000) because of bodily injury to or death of one person, in any
one accident and subject to the limit for one person, to a limit of not less
than fifty thousand dollars ($50,000) because of bodily injury to or death of
two (2) or more persons in any one accident, and if the accident has resulted
in injury to, or destruction of, property to a limit of not less than
twenty-five thousand dollars ($25,000) because of injury to or destruction of
property of others in any one accident.
(b) No policy or bond shall be effective under § 31-31-6
with respect to any vehicle which was not registered in this state or was a
vehicle which was registered elsewhere than in this state at the effective date
of the policy or bond or the most recent renewal thereof, unless the insurance
company or surety company issuing the policy or bond is authorized to do
business in this state, or if the company is not authorized to do business in
this state, unless it shall execute a power of attorney authorizing the
administrator of the division of motor vehicles to accept service on its behalf
of notice or process in any action upon the policy or bond arising out of the
accident.
(c) The division of motor vehicles may rely upon the accuracy
of the information in a required report of an accident as to the existence of
insurance or a bond unless and until the division of motor vehicles has reason
to believe that the information is erroneous.
History of Section.
(P.L. 1993, ch. 4, § 2.)