28-4009

28-4009. Motor vehicle liability policy
requirements

A. An owner's motor vehicle liability policy shall comply with the following:

1. The policy shall designate by explicit description or by appropriate reference
all motor vehicles for which coverage is granted. If coverage is provided for a fleet of
seven or more motor vehicles, the maximum payable for any one accident is the limit of
liability stated in the policy. There is no accumulation of coverage for each separate
vehicle covered.

2. The policy shall insure the person named in the policy as the insured and any
other person, as insured, using the motor vehicle or motor vehicles with the express or
implied permission of the named insured against loss from the liability imposed by law
for damages arising out of the ownership, maintenance or use of the motor vehicle or
motor vehicles within the United States or the Dominion of Canada, subject to limits
exclusive of interest and costs, for each motor vehicle as follows:

(a) Fifteen thousand dollars because of bodily injury to or death of one person in
any one accident.

(b) Subject to the limit for one person, thirty thousand dollars because of bodily
injury to or death of two or more persons in any one accident.

3. By agreement in writing between a named insured and the insurer the policy may
exclude as insured a person or persons designated by name when operating a motor
vehicle. The written agreement between the named insured and insurer is effective for
each renewal of the policy by the insurer and remains in effect until the insurer agrees
in writing to provide coverage for the person or persons who were previously excluded
from coverage.

B. An operator's motor vehicle liability policy shall insure the person named as
insured in the policy against loss from the liability imposed on the person by law for
damages arising out of the use by the person of a motor vehicle not owned by the person,
within the same territorial limits and subject to the same limits of liability provided
in subsection A of this section for an owner's motor vehicle liability policy.

C. A motor vehicle liability policy:

1. Shall state the name and address of the named insured, the coverage afforded by
the policy, the premium charged for the policy, the complete vehicle identification
number of all vehicles covered by the policy, the policy period and the limits of
liability.

2. Shall contain an agreement or be endorsed that insurance is provided under the
policy in accordance with the coverage defined in this chapter for bodily injury and
death or property damage, or both.

3. Is subject to all of the provisions of this chapter.

4. Is not required to insure liability either:

(a) Under any workers' compensation law.

(b) On account of bodily injury to or death of an employee of the insured while
engaged in the employment, other than domestic, of the insured or while engaged in the
operation, maintenance or repair of the motor vehicle.

(d) For damage to property or bodily injury caused intentionally by or at the
direction of the insured.

5. Is subject to the following provisions that are not required to be in the
policy:

(a) The liability of the insurance carrier with respect to the insurance required
by this chapter becomes absolute when injury or damage covered by the motor vehicle
liability policy occurs. The policy may not be cancelled or annulled as to that
liability by an agreement between the insurance carrier and the insured after the
occurrence of the injury or damage, and a statement made by the insured or someone on the
insured's behalf or a violation of the policy shall not defeat or void the policy.

(b) The satisfaction by the insured of a judgment for the injury or damage is not a
condition precedent to the right or duty of the insurance carrier to make payment on
account of the injury or damage.

(c) The insurance carrier may settle any claim covered by the policy, and if the
settlement is made in good faith, the amount of the claim is deductible from the limits
of liability specified in subsection A, paragraph 2 of this section.

(d) The policy, the written application for the policy, if any, and any rider or
endorsement that does not conflict with this chapter constitute the entire contract
between the parties.

6. May provide that the insured shall reimburse the insurance carrier for any
payment the insurance carrier would not have been obligated to make under the terms of
the policy except for this chapter.

7. May provide for the prorating of the insurance under the policy with other valid
and collectible insurance.

D. A policy that grants the coverage required for a motor vehicle liability policy
may also grant lawful coverage in excess of or in addition to the coverage specified for
a motor vehicle liability policy, and the excess or additional coverage is not subject to
this chapter. With respect to a policy that grants the excess or additional coverage,
the term "motor vehicle liability policy" applies only to that part of the coverage that
is required by this section.

E. The requirements for a motor vehicle liability policy may be fulfilled by the
policies of one or more insurance carriers that together meet the requirements.

F. A binder issued pending the issuance of a motor vehicle liability policy
fulfills the requirements for the policy.