State Codes and Statutes

Statutes > North-carolina > Chapter_20 > GS_20-311

§ 20‑311.  Action by theDivision when notified of a lapse in financial responsibility.

(a)        Action. – When theDivision receives evidence, by a notice of termination of a motor vehicleliability policy or otherwise, that the owner of a motor vehicle registered orrequired to be registered in this State does not have financial responsibilityfor the operation of the vehicle, the Division shall send the owner a letter.The letter shall notify the owner of the evidence and inform the owner that theowner shall respond to the letter within 10 days of the date on the letter andexplain how the owner has met the duty to have continuous financialresponsibility for the vehicle. Based on the owner's response, the Divisionshall take the appropriate action listed:

(1)        Division correction.– If the owner responds within the required time and the response establishesthat the owner has not had a lapse in financial responsibility, the Divisionshall correct its records.

(2)        Penalty only. – Ifthe owner responds within the required time and the response establishes all ofthe following, the Division shall assess the owner a penalty in the amount setin subsection (b) of this section:

a.         The owner had alapse in financial responsibility, but the owner now has financial responsibility.

b.         The vehicle was notinvolved in an accident during the lapse in financial responsibility.

c.         The owner did notoperate the vehicle during the lapse with knowledge that the owner had nofinancial responsibility for the vehicle.

(3)        Penalty andrevocation. – If the owner responds within the required time and the responseestablishes any of the following, the Division shall assess the owner a penaltyin the amount set in subsection (b) of this section and revoke the registrationof the owner's vehicle for the period set in subsection (c) of this section:

a.         The owner had alapse in financial responsibility and still does not have financialresponsibility.

b.         The owner now hasfinancial responsibility even though the owner had a lapse, but the vehicle wasinvolved in an accident during the lapse, the owner operated the vehicle duringthe lapse with knowledge that the owner had no financial responsibility for thevehicle, or both.

(4)        Revocation pendingresponse. – If the owner does not respond within the required time, theDivision shall revoke the registration of the owner's vehicle for the periodset in subsection (c) of this section. When the owner responds, the Divisionshall take the appropriate action listed in subdivisions (1) through (3) of thissubsection as if the response had been timely.

(b)        Penalty Amount. – Thefollowing table determines the amount of a penalty payable under this sectionby an owner who has had a lapse in financial responsibility; the amount isbased on the number of times the owner has been assessed a penalty under thissection during the three‑year period before the date the owner's currentlapse began:

Numberof Lapses in Previous Three Years                        Penalty Amount

                             None                                                              $50.00

                             One                                                              $100.00

                             Twoor More                                               $150.00

(c)        Revocation Period.– The revocation period for a revocation based on a response that establishesthat a vehicle owner does not have financial responsibility is indefinite andends when the owner obtains financial responsibility or transfers the vehicleto an owner who has financial responsibility. The revocation period for arevocation based on a response that establishes the occurrence of an accidentduring a lapse in financial responsibility or the knowing operation of avehicle without financial responsibility is 30 days. The revocation period fora revocation based on failure of a vehicle owner to respond is indefinite andends when the owner responds.

(d)        Revocation Notice.– When the Division revokes the registration of an owner's vehicle, it shallnotify the owner of the revocation. The notice shall inform the owner of thefollowing:

(1)        That the owner shallreturn the vehicle's registration plate and registration card to the Division,if the owner has not done so already, and that failure to do so is a Class 2 misdemeanorunder G.S. 20‑45.

(2)        That the vehicle'sregistration plate and registration card are subject to seizure by a lawenforcement officer.

(3)        That theregistration of the vehicle cannot be renewed while the registration isrevoked.

(4)        That the owner shallpay any penalties assessed, a restoration fee, and the fee for a registrationplate when the owner applies to the Division to register a vehicle whoseregistration was revoked.

(e)        Registration AfterRevocation. – A vehicle whose registration has been revoked may not beregistered during the revocation period in the name of the owner, a child ofthe owner, the owner's spouse, or a child of the owner's spouse. Thisrestriction does not apply to a spouse who is living separate and apart fromthe owner. At the end of a revocation period, a vehicle owner who has financialresponsibility may apply to register a vehicle whose registration was revoked.The owner shall pay any penalty assessed, a restoration fee of fifty dollars($50.00), and the fee for a registration plate.

(f)         Clear Proceeds ofPenalties. – The clear proceeds of all civil penalties, civil forfeitures, andcivil fines that are collected by the Department of Transportation pursuant tothis section shall be remitted to the Civil Penalty and Forfeiture Fund inaccordance with G.S. 115C‑457.2.

(g)        Notwithstanding thepenalty and restoration fee provisions of this section, any monetary penalty orrestoration fee shall be waived for any person who, at the time of notificationof a lapse in coverage, was deployed as a member of the United States ArmedForces outside of the continental United States for a total of 45 or more days.In addition, no insurance points under the Safe Driver Incentive Plan shall beassessed for any violation for which a monetary penalty or restoration fee iswaived pursuant to this subsection. Any person qualifying under this subsectionshall:

(1)        Have an affirmativedefense to any criminal charge based upon the failure to return anyregistration card or registration plate to the Division;

(2)        Upon reregistration,receive without cost from the Division all necessary registration cards orplates; and

(3)        Upon notice ofrevocation, be permitted to transfer the vehicle's registration immediately tohis or her spouse, child, or spouse's child, notwithstanding the provisions ofsubsection (e) of this section. (1957, c. 1393, s. 3; 1959, c. 1277, s. 2; 1963, c.964, s. 4; 1965, c. 205; c. 1136, s. 3; 1967, c. 822, s. 3; c. 857, s. 4; 1971,c. 477, s. 3; 1975, c. 348, s. 4; c. 716, s. 5; 1979, 2nd Sess., c. 1279, s. 2;1983, c. 761, s. 147; 1983 (Reg. Sess., 1984), c. 1069, s. 2; 2006‑213,s. 2; 2006‑264, s. 38; 2007‑484, ss. 7(c), (d).)

State Codes and Statutes

Statutes > North-carolina > Chapter_20 > GS_20-311

§ 20‑311.  Action by theDivision when notified of a lapse in financial responsibility.

(a)        Action. – When theDivision receives evidence, by a notice of termination of a motor vehicleliability policy or otherwise, that the owner of a motor vehicle registered orrequired to be registered in this State does not have financial responsibilityfor the operation of the vehicle, the Division shall send the owner a letter.The letter shall notify the owner of the evidence and inform the owner that theowner shall respond to the letter within 10 days of the date on the letter andexplain how the owner has met the duty to have continuous financialresponsibility for the vehicle. Based on the owner's response, the Divisionshall take the appropriate action listed:

(1)        Division correction.– If the owner responds within the required time and the response establishesthat the owner has not had a lapse in financial responsibility, the Divisionshall correct its records.

(2)        Penalty only. – Ifthe owner responds within the required time and the response establishes all ofthe following, the Division shall assess the owner a penalty in the amount setin subsection (b) of this section:

a.         The owner had alapse in financial responsibility, but the owner now has financial responsibility.

b.         The vehicle was notinvolved in an accident during the lapse in financial responsibility.

c.         The owner did notoperate the vehicle during the lapse with knowledge that the owner had nofinancial responsibility for the vehicle.

(3)        Penalty andrevocation. – If the owner responds within the required time and the responseestablishes any of the following, the Division shall assess the owner a penaltyin the amount set in subsection (b) of this section and revoke the registrationof the owner's vehicle for the period set in subsection (c) of this section:

a.         The owner had alapse in financial responsibility and still does not have financialresponsibility.

b.         The owner now hasfinancial responsibility even though the owner had a lapse, but the vehicle wasinvolved in an accident during the lapse, the owner operated the vehicle duringthe lapse with knowledge that the owner had no financial responsibility for thevehicle, or both.

(4)        Revocation pendingresponse. – If the owner does not respond within the required time, theDivision shall revoke the registration of the owner's vehicle for the periodset in subsection (c) of this section. When the owner responds, the Divisionshall take the appropriate action listed in subdivisions (1) through (3) of thissubsection as if the response had been timely.

(b)        Penalty Amount. – Thefollowing table determines the amount of a penalty payable under this sectionby an owner who has had a lapse in financial responsibility; the amount isbased on the number of times the owner has been assessed a penalty under thissection during the three‑year period before the date the owner's currentlapse began:

Numberof Lapses in Previous Three Years                        Penalty Amount

                             None                                                              $50.00

                             One                                                              $100.00

                             Twoor More                                               $150.00

(c)        Revocation Period.– The revocation period for a revocation based on a response that establishesthat a vehicle owner does not have financial responsibility is indefinite andends when the owner obtains financial responsibility or transfers the vehicleto an owner who has financial responsibility. The revocation period for arevocation based on a response that establishes the occurrence of an accidentduring a lapse in financial responsibility or the knowing operation of avehicle without financial responsibility is 30 days. The revocation period fora revocation based on failure of a vehicle owner to respond is indefinite andends when the owner responds.

(d)        Revocation Notice.– When the Division revokes the registration of an owner's vehicle, it shallnotify the owner of the revocation. The notice shall inform the owner of thefollowing:

(1)        That the owner shallreturn the vehicle's registration plate and registration card to the Division,if the owner has not done so already, and that failure to do so is a Class 2 misdemeanorunder G.S. 20‑45.

(2)        That the vehicle'sregistration plate and registration card are subject to seizure by a lawenforcement officer.

(3)        That theregistration of the vehicle cannot be renewed while the registration isrevoked.

(4)        That the owner shallpay any penalties assessed, a restoration fee, and the fee for a registrationplate when the owner applies to the Division to register a vehicle whoseregistration was revoked.

(e)        Registration AfterRevocation. – A vehicle whose registration has been revoked may not beregistered during the revocation period in the name of the owner, a child ofthe owner, the owner's spouse, or a child of the owner's spouse. Thisrestriction does not apply to a spouse who is living separate and apart fromthe owner. At the end of a revocation period, a vehicle owner who has financialresponsibility may apply to register a vehicle whose registration was revoked.The owner shall pay any penalty assessed, a restoration fee of fifty dollars($50.00), and the fee for a registration plate.

(f)         Clear Proceeds ofPenalties. – The clear proceeds of all civil penalties, civil forfeitures, andcivil fines that are collected by the Department of Transportation pursuant tothis section shall be remitted to the Civil Penalty and Forfeiture Fund inaccordance with G.S. 115C‑457.2.

(g)        Notwithstanding thepenalty and restoration fee provisions of this section, any monetary penalty orrestoration fee shall be waived for any person who, at the time of notificationof a lapse in coverage, was deployed as a member of the United States ArmedForces outside of the continental United States for a total of 45 or more days.In addition, no insurance points under the Safe Driver Incentive Plan shall beassessed for any violation for which a monetary penalty or restoration fee iswaived pursuant to this subsection. Any person qualifying under this subsectionshall:

(1)        Have an affirmativedefense to any criminal charge based upon the failure to return anyregistration card or registration plate to the Division;

(2)        Upon reregistration,receive without cost from the Division all necessary registration cards orplates; and

(3)        Upon notice ofrevocation, be permitted to transfer the vehicle's registration immediately tohis or her spouse, child, or spouse's child, notwithstanding the provisions ofsubsection (e) of this section. (1957, c. 1393, s. 3; 1959, c. 1277, s. 2; 1963, c.964, s. 4; 1965, c. 205; c. 1136, s. 3; 1967, c. 822, s. 3; c. 857, s. 4; 1971,c. 477, s. 3; 1975, c. 348, s. 4; c. 716, s. 5; 1979, 2nd Sess., c. 1279, s. 2;1983, c. 761, s. 147; 1983 (Reg. Sess., 1984), c. 1069, s. 2; 2006‑213,s. 2; 2006‑264, s. 38; 2007‑484, ss. 7(c), (d).)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_20 > GS_20-311

§ 20‑311.  Action by theDivision when notified of a lapse in financial responsibility.

(a)        Action. – When theDivision receives evidence, by a notice of termination of a motor vehicleliability policy or otherwise, that the owner of a motor vehicle registered orrequired to be registered in this State does not have financial responsibilityfor the operation of the vehicle, the Division shall send the owner a letter.The letter shall notify the owner of the evidence and inform the owner that theowner shall respond to the letter within 10 days of the date on the letter andexplain how the owner has met the duty to have continuous financialresponsibility for the vehicle. Based on the owner's response, the Divisionshall take the appropriate action listed:

(1)        Division correction.– If the owner responds within the required time and the response establishesthat the owner has not had a lapse in financial responsibility, the Divisionshall correct its records.

(2)        Penalty only. – Ifthe owner responds within the required time and the response establishes all ofthe following, the Division shall assess the owner a penalty in the amount setin subsection (b) of this section:

a.         The owner had alapse in financial responsibility, but the owner now has financial responsibility.

b.         The vehicle was notinvolved in an accident during the lapse in financial responsibility.

c.         The owner did notoperate the vehicle during the lapse with knowledge that the owner had nofinancial responsibility for the vehicle.

(3)        Penalty andrevocation. – If the owner responds within the required time and the responseestablishes any of the following, the Division shall assess the owner a penaltyin the amount set in subsection (b) of this section and revoke the registrationof the owner's vehicle for the period set in subsection (c) of this section:

a.         The owner had alapse in financial responsibility and still does not have financialresponsibility.

b.         The owner now hasfinancial responsibility even though the owner had a lapse, but the vehicle wasinvolved in an accident during the lapse, the owner operated the vehicle duringthe lapse with knowledge that the owner had no financial responsibility for thevehicle, or both.

(4)        Revocation pendingresponse. – If the owner does not respond within the required time, theDivision shall revoke the registration of the owner's vehicle for the periodset in subsection (c) of this section. When the owner responds, the Divisionshall take the appropriate action listed in subdivisions (1) through (3) of thissubsection as if the response had been timely.

(b)        Penalty Amount. – Thefollowing table determines the amount of a penalty payable under this sectionby an owner who has had a lapse in financial responsibility; the amount isbased on the number of times the owner has been assessed a penalty under thissection during the three‑year period before the date the owner's currentlapse began:

Numberof Lapses in Previous Three Years                        Penalty Amount

                             None                                                              $50.00

                             One                                                              $100.00

                             Twoor More                                               $150.00

(c)        Revocation Period.– The revocation period for a revocation based on a response that establishesthat a vehicle owner does not have financial responsibility is indefinite andends when the owner obtains financial responsibility or transfers the vehicleto an owner who has financial responsibility. The revocation period for arevocation based on a response that establishes the occurrence of an accidentduring a lapse in financial responsibility or the knowing operation of avehicle without financial responsibility is 30 days. The revocation period fora revocation based on failure of a vehicle owner to respond is indefinite andends when the owner responds.

(d)        Revocation Notice.– When the Division revokes the registration of an owner's vehicle, it shallnotify the owner of the revocation. The notice shall inform the owner of thefollowing:

(1)        That the owner shallreturn the vehicle's registration plate and registration card to the Division,if the owner has not done so already, and that failure to do so is a Class 2 misdemeanorunder G.S. 20‑45.

(2)        That the vehicle'sregistration plate and registration card are subject to seizure by a lawenforcement officer.

(3)        That theregistration of the vehicle cannot be renewed while the registration isrevoked.

(4)        That the owner shallpay any penalties assessed, a restoration fee, and the fee for a registrationplate when the owner applies to the Division to register a vehicle whoseregistration was revoked.

(e)        Registration AfterRevocation. – A vehicle whose registration has been revoked may not beregistered during the revocation period in the name of the owner, a child ofthe owner, the owner's spouse, or a child of the owner's spouse. Thisrestriction does not apply to a spouse who is living separate and apart fromthe owner. At the end of a revocation period, a vehicle owner who has financialresponsibility may apply to register a vehicle whose registration was revoked.The owner shall pay any penalty assessed, a restoration fee of fifty dollars($50.00), and the fee for a registration plate.

(f)         Clear Proceeds ofPenalties. – The clear proceeds of all civil penalties, civil forfeitures, andcivil fines that are collected by the Department of Transportation pursuant tothis section shall be remitted to the Civil Penalty and Forfeiture Fund inaccordance with G.S. 115C‑457.2.

(g)        Notwithstanding thepenalty and restoration fee provisions of this section, any monetary penalty orrestoration fee shall be waived for any person who, at the time of notificationof a lapse in coverage, was deployed as a member of the United States ArmedForces outside of the continental United States for a total of 45 or more days.In addition, no insurance points under the Safe Driver Incentive Plan shall beassessed for any violation for which a monetary penalty or restoration fee iswaived pursuant to this subsection. Any person qualifying under this subsectionshall:

(1)        Have an affirmativedefense to any criminal charge based upon the failure to return anyregistration card or registration plate to the Division;

(2)        Upon reregistration,receive without cost from the Division all necessary registration cards orplates; and

(3)        Upon notice ofrevocation, be permitted to transfer the vehicle's registration immediately tohis or her spouse, child, or spouse's child, notwithstanding the provisions ofsubsection (e) of this section. (1957, c. 1393, s. 3; 1959, c. 1277, s. 2; 1963, c.964, s. 4; 1965, c. 205; c. 1136, s. 3; 1967, c. 822, s. 3; c. 857, s. 4; 1971,c. 477, s. 3; 1975, c. 348, s. 4; c. 716, s. 5; 1979, 2nd Sess., c. 1279, s. 2;1983, c. 761, s. 147; 1983 (Reg. Sess., 1984), c. 1069, s. 2; 2006‑213,s. 2; 2006‑264, s. 38; 2007‑484, ss. 7(c), (d).)