AN ACT relating to failure to maintain security on a motor vehicle as required by Subtitle 39 of KRS Chapter 304.
     Create a new section of Subtitle 39 of KRS Chapter 304 to provide that there shall be no recovery for the first ten thousand dollars of bodily injury and the first ten thousand dollars of property damage based on any cause or right of action arising out of a motor vehicle accident if the owner or operator fails to own or maintain security as required by this subtitle; provide that the limitation of damages shall not apply if the driver of the other vehicle is cited for driving under the influence, intentionally causes the accident, flees from the scene, or at the time of the accident is in furtherance of commission of a felony; provide that the limitation of damages does not apply to the owner of a vehicle that is not being operated and is not in violation of KRS Chapter 189; provide that a person involved in an accident in which the other vehicle is not covered by insurance may assert, as an affirmative defense, the limitation of damages provisions of this Act; provide that if an owner of an uninsured vehicle institutes an action to recover damages and is awarded an amount equal to or less than the minimum insurance requirements of KRS 304.39-110, the owner or operator must be held liable for all court costs incurred by the parties to the action; provide that each person who applies for a driver's license, registers a motor vehicle, or operates or owns a motor vehicle in this state is deemed to have consented to being subject to this Act; require all persons who apply for issuance or renewal of a driver's license, motor vehicle title, or motor vehicle registration to sign a declaration that the person consents to the provisions of this Act; provide that this Act does not preclude a passenger from asserting a claim to recover damages which he or she occasioned by the negligence of another person arising out of the operation or use of a motor vehicle; provide that no insurer shall lose any rights of subrogation; provide that if no suit is filed, the claimant's insurer may recover any amount paid on behalf of the insured in excess of the first ten thousand dollars of bodily injury and property damages; provide that except for newly acquired vehicles added to a policy, the issuance, change, or adjustment of any motor vehicle liability security subsequent to an accident without proof of coverage having been bound prior to the accident shall not effectuate the recovery, the defeat of an affirmative defense, or the avoidance of liability for court costs; exempt from the provisions of this Act any vehicle which is legally parked at the time of the accident.

     (Prefiled by the sponsor(s).)

     Oct 4-To: Interim Joint Committee on Banking and Insurance
     Jan 2-introduced in House
     Jan 3-to Banking and Insurance (H)