Introduced Version, House Bill 1045 This bill requires insurers to notify the BMV if a person’s policy is cancelled before the policy expiration date. The BMV is then required to revoke the person’s operator’s license if they don’t jump through some hoops proving their renewed financial responsibility.
I understand the problem it’s intended to address. Lots of people register their vehicle with a binder or other proof of insurance that doesn’t require they pay the full period in advance. Then they don’t pay their premium and keep driving. Then they get into an accident and can’t pay for the damage they caused. However, I don’t know that this approach will be especially effective. And woe to the person who wrongfully gets snarled in the BMV bureaucracy under this system.
Finally, the proper penalty should probably go to the registration of the vehicle. I am not sure on this point. (In fact, I think there is some question under Indiana law on this point.) But, I think insurance follows the vehicle more than it follows the driver. Seems like a person should be able to have a license without having their own vehicle and still be able to drive another person’s vehicle, provided that they are driving with the permission of the vehicle’s owner and thereby covered by that person’s insurance. That would not be possible under this system.