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CHAPTER 39-16.1PROOF OF FINANCIAL RESPONSIBILITY FOR THE FUTURE39-16.1-01. Application. The provisions of this chapter requiring the deposit of proof offinancial responsibility for the future, subject to certain exemptions, apply with respect to any<br>person who has been convicted of or forfeited bail for certain offenses under motor vehicle laws<br>or who has failed to pay judgments upon claims for relief arising out of ownership, maintenance,<br>or use of vehicles of a type subject to registration under the laws of this state.39-16.1-02. Proof of financial responsibility defined. &quot;Proof of financial responsibility&quot;means proof of ability to respond in damages for liability, on account of accidents occurring after<br>the effective date of said proof, arising out of the ownership, maintenance, or use of a motor<br>vehicle, in the amount of twenty-five thousand dollars because of bodily injury to or death of one<br>person in any one accident, and, subject to said limit for one person, in the amount of fifty<br>thousand dollars because of bodily injury to or death of two or more persons in any one accident,<br>and in the amount of twenty-five thousand dollars because of injury to or destruction of property<br>of others in any one accident.39-16.1-03. Notice of failure to satisfy judgment. When any person fails within thirtydays to satisfy any judgment, it is the duty of the clerk of the court, or of the judge of a court<br>which has no clerk, in which any such judgment is rendered within this state, to forward to the<br>director immediately after the expiration of said thirty days, a certified copy of such judgment or a<br>certified copy of the docket entries in an action resulting in a judgment for damages or a<br>certificate of facts relative to a judgment on a form provided by the director. If the judgment<br>debtor is a nonresident, the director shall transmit a certified copy of the judgment to the official in<br>charge of the issuance of drivers' licenses of the state of which the judgment debtor is a resident.39-16.1-04. Suspension of license - Temporary release.1.The director, upon receipt of a certified copy of a judgment or a certified copy of the<br>docket entries in an action resulting in a judgment for damages or a certificate of<br>facts relative to a judgment on a form provided by the director, shall forthwith<br>suspend the license or operating privilege, of any person against whom such<br>judgment was rendered except as hereinafter otherwise provided in this section and<br>in section 39-16.1-06.2.If the judgment creditor consents in writing, in such form as the director may<br>prescribe that the judgment debtor be allowed license or nonresident's operating<br>privilege, the same may be allowed by the director for six months from the date of<br>such consent and thereafter until such consent is revoked in writing, notwithstanding<br>default in the payment of such judgment, or of any installments thereof prescribed in<br>section 39-16.1-06 provided the judgment debtor furnishes proof of financial<br>responsibility.3.Any person whose license or nonresident's operating privilege has been suspended<br>or is about to be suspended or will become subject to suspension under this chapter<br>may be relieved from the effect of the judgment as prescribed in this chapter by filing<br>with the director an affidavit stating that at the time of the accident upon which the<br>judgment has been rendered the affiant was insured, that the insurer is liable to pay<br>the judgment, and the reason, if known, why the insurer has not paid the judgment.<br>That person shall also file the original or a copy of the insurance policy, if available,<br>and any other documents the director may require to show that the loss, injury, or<br>damage for which the judgment was rendered, was covered by the insurance policy.<br>If the director is satisfied from such papers that the insurer was authorized to issue<br>the insurance policy at the time and place of issuing the policy and that the insurer is<br>liable to pay the judgment, at least to the extent and for the amounts required in this<br>chapter, the director may not suspend the license or nonresident's operating<br>privilege, or if already suspended shall reinstate them.Page No. 14.A license or nonresident's operating privilege must remain suspended and may not<br>be renewed, nor may any such license be thereafter issued in the name of such<br>person, including any such person not previously licensed, unless and until every<br>such judgment is satisfied in full or to the extent hereinafter provided and until the<br>said person gives proof of financial responsibility subject to the exemptions stated in<br>sections 39-16.1-04 and 39-16.1-06.39-16.1-05.Satisfaction of judgment.Judgments herein referred to must, for thepurpose of this chapter only, be deemed satisfied:1.When twenty-five thousand dollars has been credited upon any judgment or<br>judgments rendered in excess of that amount because of bodily injury to or death of<br>one person as the result of any one accident;2.When, subject to such limit of twenty-five thousand dollars because of bodily injury<br>to or death of one person, the sum of fifty thousand dollars has been credited upon<br>any judgment or judgments rendered in excess of that amount because of bodily<br>injury to or death of two or more persons as the result of any one accident; or3.When twenty-five thousand dollars has been credited upon any judgment or<br>judgments rendered in excess of that amount because of damage to or destruction<br>of property of others as a result of any one accident. Payments made in settlement<br>of any claims because of bodily injury, death, or property damages arising from a<br>motor vehicle accident must be credited in reduction of the amounts provided for in<br>this section.39-16.1-06. Installment payments.1.A judgment debtor upon due notice to the judgment creditor may apply to the court<br>in which such judgment was rendered for the privilege of paying such judgment in<br>installments and the court, in its discretion and without prejudice to any other legal<br>remedies which the judgment creditor may have, may so order and fix the amounts<br>and times of payment of the installments.2.The director may not suspend a license, or a nonresident's operating privilege,<br>suspended following nonpayment of a judgment, when the judgment debtor gives<br>proof of financial responsibility and obtains such an order permitting the payment of<br>such judgment in installments, and while the payment of any said installment is not<br>in default.3.In the event the judgment debtor fails to pay any installment as specified by such<br>order, then upon notice of such default, the director shall forthwith suspend the<br>license, or nonresident's operating privilege of the judgment debtor until such<br>judgment is satisfied as provided in this chapter.39-16.1-07. Revocation or suspension of license for reasons other than provisionsof this chapter.1.Whenever the director under any other law of this state, except sections 39-06-40<br>and 39-06-40.1, revokes the license of any person, the license must remain revoked<br>and may not be renewed nor shall any license be issued to such person, unless the<br>person gives and maintains proof of financial responsibility.2.If a person by final order or judgment is convicted of or forfeits any bail or collateral<br>deposited to secure an appearance for trial for any offense requiring the revocation<br>of license, driving or being in actual physical control of a vehicle while under the<br>influence in violation of section 39-08-01 or equivalent ordinance, or operating a<br>motor vehicle upon the highway while the person's license or privilege to drive is<br>under suspension for a violation requiring a license or privilege to drive suspensionPage No. 2of at least ninety-one days or revocation, the license or driving privilege must remain<br>suspended or revoked and no license may be issued or returned to the person,<br>unless the person gives and maintains proof of financial responsibility.39-16.1-08. Proof of financial responsibility. Proof of financial responsibility whenrequired under this chapter may be given by filing:1.A certificate of insurance as provided in sections 39-16.1-09 and 39-16.1-10;2.A bond as provided in section 39-16.1-14; or3.A certificate of deposit of money or securities as provided in section 39-16.1-15.39-16.1-09. Proof by showing insurance coverage.1.Proof of financial responsibility may be furnished by filing with the director the written<br>or electronically transmitted certificate of any insurance carrier duly authorized to do<br>business in this state certifying that there is in effect a motor vehicle liability policy for<br>the benefit of the person required to furnish proof of financial responsibility. Such<br>certificate must give the effective date of such motor vehicle liability policy, which<br>date shall be the same as the effective date of the certificate, and must designate by<br>explicit description or by appropriate reference all motor vehicles covered thereby,<br>unless the policy is an operator's policy.2.When a certificate is filed showing that a policy or policies have been issued<br>covering certain described motor vehicles or a limited operator's policy but not<br>insuring such person when operating all other motor vehicles, the director shall<br>designate suitable restriction upon the driver's license of such person authorizing the<br>operation of only such vehicles as are covered by the certificate. It is unlawful for<br>such person to operate any motor vehicle not covered by such certificate. In the<br>event a person desires to be relieved of the foregoing restriction and to be permitted<br>to operate any motor vehicle, the person may have such restriction removed upon<br>filing a certificate showing that there has been issued to the person a motor vehicle<br>liability policy insuring the person against liability arising out of the use of any motor<br>vehicle.39-16.1-10. Nonresident owner.1.The nonresident owner of a motor vehicle not registered in this state may give proof<br>of financial responsibility by filing with the director a written or electronically<br>transmitted certificate of an insurance carrier authorized to transact business in the<br>state in which the motor vehicle or motor vehicles described in the certificate is<br>registered, or if the nonresident does not own a motor vehicle, then in the state in<br>which the insured resides, provided the certificate otherwise conforms to the<br>provisions of this chapter, and the director shall accept the same upon condition that<br>the insurance carrier complies with the following provisions with respect to the<br>policies so certified:a.The insurance carrier shall execute a power of attorney authorizing the director<br>to accept service on its behalf of notice or process in any action arising out of a<br>motor vehicle accident in this state.b.The insurance carrier shall agree in writing that the policies conform with the<br>laws of this state relating to the terms of motor vehicle liability policies issued<br>herein.2.If any insurance carrier not authorized to transact business in this state, which has<br>qualified to furnish proof of financial responsibility, defaults in any undertaking or<br>agreement, the director may not thereafter accept as proof any certificate of thePage No. 3carrier whether filed up to that time or thereafter tendered as proof, so long as the<br>default continues.3.Notwithstanding the requirement of subsection 1, the nonresident owner of a motor<br>vehicle not registered in this state may file proof of future financial responsibility of<br>an insurance company or other state-authorized entity providing insurance and<br>authorized or licensed to do business in the nonresident's state of residence as long<br>as such proof of future financial responsibility is in the amounts required by this<br>state.39-16.1-11. Motor vehicle liability policy.1.A &quot;motor vehicle liability policy&quot; as said term is used in this chapter means an<br>owner's or an operator's policy of liability insurance, certified as provided in sections<br>39-16.1-09 and 39-16.1-10 as proof of financial responsibility, and issued, except as<br>otherwise provided in section 39-16.1-10, by an insurance carrier duly authorized to<br>transact business in this state, to or for the benefit of the person named therein as<br>insured.2.Such owner's policy of liability insurance:a.Must designate by explicit description or by appropriate reference all motor<br>vehicles with respect to which coverage is thereby to be granted; andb.Must insure the person named therein and any other person, as insured, using<br>such motor vehicle or motor vehicles with the express or implied permission of<br>such named insured, against loss from the liability imposed by law for damages<br>arising out of the ownership, maintenance, or use of such motor vehicles within<br>the United States of America or the Dominion of Canada, subject to limits<br>exclusive of interest and costs, with respect to each such motor vehicle, as<br>follows: twenty-five thousand dollars because of bodily injury to or death of one<br>person in any one accident and subject to said limit for one person, fifty<br>thousand dollars because of bodily injury to or death of two or more persons in<br>any one accident, and twenty-five thousand dollars because of injury to or<br>destruction of property of others in any one accident.3.Such operator's policy of liability insurance must insure the person named as<br>insured therein against loss from the liability imposed upon the person by law for<br>damages arising out of the use by the person of any motor vehicle, either unlimited,<br>or limited by excluding certain classes or types of motor vehicles, within the same<br>territorial limits and subject to the same limits of liability as are set forth above with<br>respect to an owner's policy of liability insurance.4.Such motor vehicle liability policy must state the name and address of the named<br>insured, the coverage afforded by the policy, the premium charged therefor, the<br>policy period and the limits of liability, and must contain an agreement or be<br>endorsed that insurance is provided thereunder in accordance with the coverage<br>defined in this chapter as respects bodily injury and death or property damage, or<br>both, and is subject to all the provisions of this chapter.5.Such motor vehicle liability policy need not insure any liability under any workforce<br>safety and insurance law nor any liability on account of bodily injury to or death of an<br>employee of the insured while engaged in the employment, other than domestic, of<br>the insured, or while engaged in the operation, maintenance, or repair of any such<br>motor vehicle nor any liability for damage to property owned by, rented to, in charge<br>of, or transported by the insured.6.Every motor vehicle liability policy is subject to the following provisions which need<br>not be contained therein:Page No. 4a.The liability of the insurance carrier with respect to the insurance required by<br>this chapter becomes absolute whenever injury or damage covered by said<br>motor vehicle liability policy occurs; said policy may not be canceled or annulled<br>as to such liability by any agreement between the insurance carrier and the<br>insured after the occurrence of the injury or damage; no statement made by the<br>insured or on the insured's behalf and no violation of said policy may defeat or<br>void said policy.b.The satisfaction by the insured of a judgment for such injury or damage is not a<br>condition precedent to the right or duty of the insurance carrier to make<br>payment on account of such injury or damage.c.The insurance carrier has the right to settle any claim covered by the policy,<br>and if such settlement is made in good faith, the amount thereof is deductible<br>from the limits of liability specified in subdivision b of subsection 2 for the<br>accident out of which such claim arose.d.The policy, the written application therefor, if any, and any rider or endorsement<br>which does not conflict with the provisions of this chapter constitute the entire<br>contract between the parties.7.Any policy which grants the coverage required for a motor vehicle liability policy may<br>also grant any lawful coverage in excess of or in addition to the coverage specified<br>for a motor vehicle liability policy and such excess or additional coverage is not<br>subject to the provisions of this chapter. With respect to a policy which grants such<br>excess or additional coverage, the term &quot;motor vehicle policy&quot; applies only to that<br>part of the coverage which is required by this section.8.Any motor vehicle liability policy may provide that the insured shall reimburse the<br>insurance carrier for any payment the insurance carrier would not have been<br>obligated to make under the terms of the policy except for the provisions of this<br>chapter.9.Any motor vehicle liability policy may provide for the prorating of the insurance<br>thereunder with other valid and collectible insurance.10.The requirements for a motor vehicle liability policy may be fulfilled by the policies of<br>one or more insurance carriers which policies together meet such requirements.11.Any binder issued pending the issuance of a motor vehicle liability policy must be<br>deemed to fulfill the requirements for such policy.39-16.1-12. Notice of cancellation of policy by insurer. When an insurance carrierhas certified a motor vehicle liability policy under sections 39-16.1-09 and 39-16.1-10, the<br>insurance carrier shall notify the director no later than ten days after cancellation or termination of<br>the certified insurance policy by filing a notice of cancellation or termination of the certified<br>insurance policy; except that a policy subsequently procured and certified shall, on the effective<br>date of its certification, terminate the insurance previously certified with respect to any motor<br>vehicle designated in both certificates.39-16.1-13. Other laws requiring insurance.1.This chapter does not apply to or affect policies of automobile insurance against<br>liability which may now or hereafter be required by any other law of this state, and<br>such policies, if they contain an agreement or are endorsed to conform to the<br>requirements of this chapter, may be certified as proof of financial responsibility<br>under this chapter.Page No. 52.This chapter may not be held to apply to or affect policies insuring solely the insured<br>named in the policy against liability resulting from the maintenance or use by<br>persons in the insured's employ or on the insured's behalf of motor vehicles not<br>owned by the insured.39-16.1-14. Financial responsibility may be evidenced by bond.1.Proof of financial responsibility may be evidenced by the bond of a surety company<br>duly authorized to transact business within this state, or a bond with at least two<br>individual sureties each owning real estate not exempt from execution of a value<br>twice the amount of such bond, which real estate must be scheduled in the bond<br>approved by a judge of a court of record, and recorded in the office of the recorder of<br>each county in which such real estate is situated, which said bond must be<br>conditioned for payment of the amounts specified in section 39-16.1-02. Such bond<br>must be filed with the director and is not cancelable except after ten days' written<br>notice to the director. Such bond constitutes a lien in favor of the state upon the real<br>estate so scheduled of any surety, which lien exists for the benefit of any holder of a<br>final judgment against the person who has filed such bond, for damages, including<br>damages for care and loss of services, because of bodily injury to or death of any<br>person, or for damages because of injury to or destruction of property, including the<br>loss of use thereof, resulting from the ownership, maintenance, use, or operation of<br>a motor vehicle after such bond is recorded.2.If such judgment rendered against the principal on such bond is not satisfied within<br>sixty days after it has become final, the judgment creditor may, for the judgment<br>creditor's own use and benefit and at the judgment creditor's sole expense, bring an<br>action or actions in the judgment creditor's own name against the company or<br>persons executing such bond, including an action or proceeding to foreclose any lien<br>that may exist upon the real estate of a person who has executed such bond.39-16.1-15. Deposit of cash with the Bank of North Dakota.1.Proof of financial responsibility may be evidenced by the certificate of the Bank of<br>North Dakota that the person named therein has deposited with it twenty-five<br>thousand dollars in cash, or securities such as may legally be purchased by savings<br>banks or for trust funds of a market value of twenty-five thousand dollars. The Bank<br>of North Dakota may not accept any such deposit and issue a certificate therefor and<br>the director may not accept such certificate unless accompanied by evidence that<br>there are no unsatisfied judgments of any character against the depositor in the<br>county where the depositor resides.2.Such deposit must be held by the Bank of North Dakota to satisfy, in accordance<br>with the provisions of this chapter, any execution on a judgment issued against such<br>person making the deposit for damages, including damages for care and loss of<br>services, because of bodily injury to or death of any person, or for damages because<br>of damages to or destruction of property, including the loss of use thereof, resulting<br>from the ownership, maintenance, use, or operation of a motor vehicle after such<br>deposit was made. Money or securities so deposited are not subject to attachment<br>or execution unless such attachment or execution arises out of a suit for damages<br>as aforesaid.39-16.1-16.Employment or family connection in lieu of proof of financialresponsibility. Whenever any person required to give proof of financial responsibility hereunder<br>is or later becomes an operator in the employ of any owner, or is or later becomes a member of<br>the immediate family or household of the owner, the director shall accept proof given by such<br>owner in lieu of proof by such other person to permit such other person to operate a motor<br>vehicle for which the owner has given proof as herein provided. The director shall designate the<br>restrictions imposed by this section on the face of such person's license.Page No. 639-16.1-17. Release of bond or deposit on making other proof of responsibility.1.The director shall consent to the cancellation of any bond or certificate of insurance<br>or the director shall direct and the Bank of North Dakota shall return any money or<br>securities to the person entitled thereto upon the substitution and acceptance of<br>other adequate proof of financial responsibility pursuant to this chapter.2.The director may not consent to the cancellation of any bond or the return of any<br>money or securities in the event any action for damages upon liability covered by<br>such proof is then pending or any judgment upon any such liability is then<br>unsatisfied, or in the event the person who has filed such bond or deposited such<br>money or securities has, within one year immediately preceding such request been<br>involved as an operator or owner in any motor vehicle accident resulting in injury or<br>damage to the person or property of others. An affidavit of the applicant as to the<br>nonexistence of such facts, or that the applicant has been released from all of the<br>applicant's liability, or has been finally adjudicated not to be liable, for such injury or<br>damage, is sufficient evidence thereof in the absence of evidence to the contrary in<br>the records of the director.39-16.1-18. Procedure on failure of proof on file. Whenever any proof of financialresponsibility filed under the provisions of this chapter no longer fulfills the purposes for which<br>required, the director shall, for the purpose of this chapter, require other proof as required by this<br>chapter and shall suspend the license or the nonresident's operating privilege upon failure to file<br>such other proof as required.39-16.1-19. Cancellation of bond or return of deposit.1.The director shall upon request consent to the immediate cancellation of any bond or<br>certificate of insurance, or the director shall direct and the Bank of North Dakota<br>shall return to the person entitled thereto any money or securities deposited<br>pursuant to this chapter as proof of financial responsibility, or the director shall waive<br>the requirement of filing proof, in any of the following events:a.At any time after one year from the date such proof was required when, during<br>the one-year period preceding the request, the director has not received record<br>of a conviction or a forfeiture of bail which would require the revocation of the<br>license or operating privilege, or both, of the person by or for whom such proof<br>was furnished.b.The death of the person on whose behalf such proof was filed or the permanent<br>incapacity of such person to operate a motor vehicle.c.The surrender of the person's license to the director by the person who has<br>given proof.2.The director may not consent to the cancellation of any bond or the return of any<br>money or securities in the event any action for damages upon a liability covered by<br>such proof is then pending or any judgment upon any such liability is then<br>unsatisfied, or in the event the person who has filed such bond or deposited such<br>money or securities has, within one year immediately preceding such request, been<br>involved as an operator or owner in any motor vehicle accident resulting in injury or<br>damage to the person or property of others. An affidavit of the applicant as to the<br>nonexistence of such facts, or that the applicant has been released from all of the<br>applicant's liability, or has been finally adjudicated not to be liable, for such injury or<br>damage, is sufficient evidence thereof in the absence of evidence to the contrary in<br>the records of the director.3.Whenever any person whose proof has been canceled or returned under<br>subdivision c of subsection 1 applies for a license within a period of one year fromPage No. 7the date proof was originally required, the application must be refused. The person's<br>operator's license and driving privileges remain under suspension or revocation until<br>the applicant reestablishes proof for the remainder of the one-year period.39-16.1-20. Seizure or return of operator's license. Repealed by S.L. 2007, ch. 325,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of <!-- -->Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of <!-- -->Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of <!-- -->Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of <!-- -->Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of <!-- -->California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of <!-- -->Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of <!-- -->Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of <!-- 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Education\"}]}]\n37:[\"$\",\"li\",\"860536\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-161/\",\"children\":\"Chapter 16.1 Elections\"}]}]\n38:[\"$\",\"li\",\"860710\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-201/\",\"children\":\"Chapter 20.1 Game, Fish, Predators, and Boating\"}]}]\n39:[\"$\",\"li\",\"861060\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-261/\",\"children\":\"Chapter 26.1 Insurance\"}]}]\n3a:[\"$\",\"li\",\"861578\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-301/\",\"children\":\"Chapter 30.1 Uniform Probate Code\"}]}]\n3b:[\"$\",\"li\",\"863897\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-621/\",\"children\":\"Chapter 62.1 Weapons\"}]}]\n3e:T6c32,"])</script><script>self.__next_f.push([1,"\u003ca href=\"https://law.justia.com/codes/north-dakota/2009/t39/pdf/t39c161.pdf\"\u003eDownload pdf\u003c/a\u003e\u003cbr\u003e\u003cdiv id=\"embed_document\" style=\"width:625px; height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t39/pdf/t39c161.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 39-16.1PROOF OF FINANCIAL RESPONSIBILITY FOR THE FUTURE39-16.1-01. Application. The provisions of this chapter requiring the deposit of proof offinancial responsibility for the future, subject to certain exemptions, apply with respect to any\u003cbr\u003eperson who has been convicted of or forfeited bail for certain offenses under motor vehicle laws\u003cbr\u003eor who has failed to pay judgments upon claims for relief arising out of ownership, maintenance,\u003cbr\u003eor use of vehicles of a type subject to registration under the laws of this state.39-16.1-02. Proof of financial responsibility defined. \u0026quot;Proof of financial responsibility\u0026quot;means proof of ability to respond in damages for liability, on account of accidents occurring after\u003cbr\u003ethe effective date of said proof, arising out of the ownership, maintenance, or use of a motor\u003cbr\u003evehicle, in the amount of twenty-five thousand dollars because of bodily injury to or death of one\u003cbr\u003eperson in any one accident, and, subject to said limit for one person, in the amount of fifty\u003cbr\u003ethousand dollars because of bodily injury to or death of two or more persons in any one accident,\u003cbr\u003eand in the amount of twenty-five thousand dollars because of injury to or destruction of property\u003cbr\u003eof others in any one accident.39-16.1-03. Notice of failure to satisfy judgment. When any person fails within thirtydays to satisfy any judgment, it is the duty of the clerk of the court, or of the judge of a court\u003cbr\u003ewhich has no clerk, in which any such judgment is rendered within this state, to forward to the\u003cbr\u003edirector immediately after the expiration of said thirty days, a certified copy of such judgment or a\u003cbr\u003ecertified copy of the docket entries in an action resulting in a judgment for damages or a\u003cbr\u003ecertificate of facts relative to a judgment on a form provided by the director. If the judgment\u003cbr\u003edebtor is a nonresident, the director shall transmit a certified copy of the judgment to the official in\u003cbr\u003echarge of the issuance of drivers' licenses of the state of which the judgment debtor is a resident.39-16.1-04. Suspension of license - Temporary release.1.The director, upon receipt of a certified copy of a judgment or a certified copy of the\u003cbr\u003edocket entries in an action resulting in a judgment for damages or a certificate of\u003cbr\u003efacts relative to a judgment on a form provided by the director, shall forthwith\u003cbr\u003esuspend the license or operating privilege, of any person against whom such\u003cbr\u003ejudgment was rendered except as hereinafter otherwise provided in this section and\u003cbr\u003ein section 39-16.1-06.2.If the judgment creditor consents in writing, in such form as the director may\u003cbr\u003eprescribe that the judgment debtor be allowed license or nonresident's operating\u003cbr\u003eprivilege, the same may be allowed by the director for six months from the date of\u003cbr\u003esuch consent and thereafter until such consent is revoked in writing, notwithstanding\u003cbr\u003edefault in the payment of such judgment, or of any installments thereof prescribed in\u003cbr\u003esection 39-16.1-06 provided the judgment debtor furnishes proof of financial\u003cbr\u003eresponsibility.3.Any person whose license or nonresident's operating privilege has been suspended\u003cbr\u003eor is about to be suspended or will become subject to suspension under this chapter\u003cbr\u003emay be relieved from the effect of the judgment as prescribed in this chapter by filing\u003cbr\u003ewith the director an affidavit stating that at the time of the accident upon which the\u003cbr\u003ejudgment has been rendered the affiant was insured, that the insurer is liable to pay\u003cbr\u003ethe judgment, and the reason, if known, why the insurer has not paid the judgment.\u003cbr\u003eThat person shall also file the original or a copy of the insurance policy, if available,\u003cbr\u003eand any other documents the director may require to show that the loss, injury, or\u003cbr\u003edamage for which the judgment was rendered, was covered by the insurance policy.\u003cbr\u003eIf the director is satisfied from such papers that the insurer was authorized to issue\u003cbr\u003ethe insurance policy at the time and place of issuing the policy and that the insurer is\u003cbr\u003eliable to pay the judgment, at least to the extent and for the amounts required in this\u003cbr\u003echapter, the director may not suspend the license or nonresident's operating\u003cbr\u003eprivilege, or if already suspended shall reinstate them.Page No. 14.A license or nonresident's operating privilege must remain suspended and may not\u003cbr\u003ebe renewed, nor may any such license be thereafter issued in the name of such\u003cbr\u003eperson, including any such person not previously licensed, unless and until every\u003cbr\u003esuch judgment is satisfied in full or to the extent hereinafter provided and until the\u003cbr\u003esaid person gives proof of financial responsibility subject to the exemptions stated in\u003cbr\u003esections 39-16.1-04 and 39-16.1-06.39-16.1-05.Satisfaction of judgment.Judgments herein referred to must, for thepurpose of this chapter only, be deemed satisfied:1.When twenty-five thousand dollars has been credited upon any judgment or\u003cbr\u003ejudgments rendered in excess of that amount because of bodily injury to or death of\u003cbr\u003eone person as the result of any one accident;2.When, subject to such limit of twenty-five thousand dollars because of bodily injury\u003cbr\u003eto or death of one person, the sum of fifty thousand dollars has been credited upon\u003cbr\u003eany judgment or judgments rendered in excess of that amount because of bodily\u003cbr\u003einjury to or death of two or more persons as the result of any one accident; or3.When twenty-five thousand dollars has been credited upon any judgment or\u003cbr\u003ejudgments rendered in excess of that amount because of damage to or destruction\u003cbr\u003eof property of others as a result of any one accident. Payments made in settlement\u003cbr\u003eof any claims because of bodily injury, death, or property damages arising from a\u003cbr\u003emotor vehicle accident must be credited in reduction of the amounts provided for in\u003cbr\u003ethis section.39-16.1-06. Installment payments.1.A judgment debtor upon due notice to the judgment creditor may apply to the court\u003cbr\u003ein which such judgment was rendered for the privilege of paying such judgment in\u003cbr\u003einstallments and the court, in its discretion and without prejudice to any other legal\u003cbr\u003eremedies which the judgment creditor may have, may so order and fix the amounts\u003cbr\u003eand times of payment of the installments.2.The director may not suspend a license, or a nonresident's operating privilege,\u003cbr\u003esuspended following nonpayment of a judgment, when the judgment debtor gives\u003cbr\u003eproof of financial responsibility and obtains such an order permitting the payment of\u003cbr\u003esuch judgment in installments, and while the payment of any said installment is not\u003cbr\u003ein default.3.In the event the judgment debtor fails to pay any installment as specified by such\u003cbr\u003eorder, then upon notice of such default, the director shall forthwith suspend the\u003cbr\u003elicense, or nonresident's operating privilege of the judgment debtor until such\u003cbr\u003ejudgment is satisfied as provided in this chapter.39-16.1-07. Revocation or suspension of license for reasons other than provisionsof this chapter.1.Whenever the director under any other law of this state, except sections 39-06-40\u003cbr\u003eand 39-06-40.1, revokes the license of any person, the license must remain revoked\u003cbr\u003eand may not be renewed nor shall any license be issued to such person, unless the\u003cbr\u003eperson gives and maintains proof of financial responsibility.2.If a person by final order or judgment is convicted of or forfeits any bail or collateral\u003cbr\u003edeposited to secure an appearance for trial for any offense requiring the revocation\u003cbr\u003eof license, driving or being in actual physical control of a vehicle while under the\u003cbr\u003einfluence in violation of section 39-08-01 or equivalent ordinance, or operating a\u003cbr\u003emotor vehicle upon the highway while the person's license or privilege to drive is\u003cbr\u003eunder suspension for a violation requiring a license or privilege to drive suspensionPage No. 2of at least ninety-one days or revocation, the license or driving privilege must remain\u003cbr\u003esuspended or revoked and no license may be issued or returned to the person,\u003cbr\u003eunless the person gives and maintains proof of financial responsibility.39-16.1-08. Proof of financial responsibility. Proof of financial responsibility whenrequired under this chapter may be given by filing:1.A certificate of insurance as provided in sections 39-16.1-09 and 39-16.1-10;2.A bond as provided in section 39-16.1-14; or3.A certificate of deposit of money or securities as provided in section 39-16.1-15.39-16.1-09. Proof by showing insurance coverage.1.Proof of financial responsibility may be furnished by filing with the director the written\u003cbr\u003eor electronically transmitted certificate of any insurance carrier duly authorized to do\u003cbr\u003ebusiness in this state certifying that there is in effect a motor vehicle liability policy for\u003cbr\u003ethe benefit of the person required to furnish proof of financial responsibility. Such\u003cbr\u003ecertificate must give the effective date of such motor vehicle liability policy, which\u003cbr\u003edate shall be the same as the effective date of the certificate, and must designate by\u003cbr\u003eexplicit description or by appropriate reference all motor vehicles covered thereby,\u003cbr\u003eunless the policy is an operator's policy.2.When a certificate is filed showing that a policy or policies have been issued\u003cbr\u003ecovering certain described motor vehicles or a limited operator's policy but not\u003cbr\u003einsuring such person when operating all other motor vehicles, the director shall\u003cbr\u003edesignate suitable restriction upon the driver's license of such person authorizing the\u003cbr\u003eoperation of only such vehicles as are covered by the certificate. It is unlawful for\u003cbr\u003esuch person to operate any motor vehicle not covered by such certificate. In the\u003cbr\u003eevent a person desires to be relieved of the foregoing restriction and to be permitted\u003cbr\u003eto operate any motor vehicle, the person may have such restriction removed upon\u003cbr\u003efiling a certificate showing that there has been issued to the person a motor vehicle\u003cbr\u003eliability policy insuring the person against liability arising out of the use of any motor\u003cbr\u003evehicle.39-16.1-10. Nonresident owner.1.The nonresident owner of a motor vehicle not registered in this state may give proof\u003cbr\u003eof financial responsibility by filing with the director a written or electronically\u003cbr\u003etransmitted certificate of an insurance carrier authorized to transact business in the\u003cbr\u003estate in which the motor vehicle or motor vehicles described in the certificate is\u003cbr\u003eregistered, or if the nonresident does not own a motor vehicle, then in the state in\u003cbr\u003ewhich the insured resides, provided the certificate otherwise conforms to the\u003cbr\u003eprovisions of this chapter, and the director shall accept the same upon condition that\u003cbr\u003ethe insurance carrier complies with the following provisions with respect to the\u003cbr\u003epolicies so certified:a.The insurance carrier shall execute a power of attorney authorizing the director\u003cbr\u003eto accept service on its behalf of notice or process in any action arising out of a\u003cbr\u003emotor vehicle accident in this state.b.The insurance carrier shall agree in writing that the policies conform with the\u003cbr\u003elaws of this state relating to the terms of motor vehicle liability policies issued\u003cbr\u003eherein.2.If any insurance carrier not authorized to transact business in this state, which has\u003cbr\u003equalified to furnish proof of financial responsibility, defaults in any undertaking or\u003cbr\u003eagreement, the director may not thereafter accept as proof any certificate of thePage No. 3carrier whether filed up to that time or thereafter tendered as proof, so long as the\u003cbr\u003edefault continues.3.Notwithstanding the requirement of subsection 1, the nonresident owner of a motor\u003cbr\u003evehicle not registered in this state may file proof of future financial responsibility of\u003cbr\u003ean insurance company or other state-authorized entity providing insurance and\u003cbr\u003eauthorized or licensed to do business in the nonresident's state of residence as long\u003cbr\u003eas such proof of future financial responsibility is in the amounts required by this\u003cbr\u003estate.39-16.1-11. Motor vehicle liability policy.1.A \u0026quot;motor vehicle liability policy\u0026quot; as said term is used in this chapter means an\u003cbr\u003eowner's or an operator's policy of liability insurance, certified as provided in sections\u003cbr\u003e39-16.1-09 and 39-16.1-10 as proof of financial responsibility, and issued, except as\u003cbr\u003eotherwise provided in section 39-16.1-10, by an insurance carrier duly authorized to\u003cbr\u003etransact business in this state, to or for the benefit of the person named therein as\u003cbr\u003einsured.2.Such owner's policy of liability insurance:a.Must designate by explicit description or by appropriate reference all motor\u003cbr\u003evehicles with respect to which coverage is thereby to be granted; andb.Must insure the person named therein and any other person, as insured, using\u003cbr\u003esuch motor vehicle or motor vehicles with the express or implied permission of\u003cbr\u003esuch named insured, against loss from the liability imposed by law for damages\u003cbr\u003earising out of the ownership, maintenance, or use of such motor vehicles within\u003cbr\u003ethe United States of America or the Dominion of Canada, subject to limits\u003cbr\u003eexclusive of interest and costs, with respect to each such motor vehicle, as\u003cbr\u003efollows: twenty-five thousand dollars because of bodily injury to or death of one\u003cbr\u003eperson in any one accident and subject to said limit for one person, fifty\u003cbr\u003ethousand dollars because of bodily injury to or death of two or more persons in\u003cbr\u003eany one accident, and twenty-five thousand dollars because of injury to or\u003cbr\u003edestruction of property of others in any one accident.3.Such operator's policy of liability insurance must insure the person named as\u003cbr\u003einsured therein against loss from the liability imposed upon the person by law for\u003cbr\u003edamages arising out of the use by the person of any motor vehicle, either unlimited,\u003cbr\u003eor limited by excluding certain classes or types of motor vehicles, within the same\u003cbr\u003eterritorial limits and subject to the same limits of liability as are set forth above with\u003cbr\u003erespect to an owner's policy of liability insurance.4.Such motor vehicle liability policy must state the name and address of the named\u003cbr\u003einsured, the coverage afforded by the policy, the premium charged therefor, the\u003cbr\u003epolicy period and the limits of liability, and must contain an agreement or be\u003cbr\u003eendorsed that insurance is provided thereunder in accordance with the coverage\u003cbr\u003edefined in this chapter as respects bodily injury and death or property damage, or\u003cbr\u003eboth, and is subject to all the provisions of this chapter.5.Such motor vehicle liability policy need not insure any liability under any workforce\u003cbr\u003esafety and insurance law nor any liability on account of bodily injury to or death of an\u003cbr\u003eemployee of the insured while engaged in the employment, other than domestic, of\u003cbr\u003ethe insured, or while engaged in the operation, maintenance, or repair of any such\u003cbr\u003emotor vehicle nor any liability for damage to property owned by, rented to, in charge\u003cbr\u003eof, or transported by the insured.6.Every motor vehicle liability policy is subject to the following provisions which need\u003cbr\u003enot be contained therein:Page No. 4a.The liability of the insurance carrier with respect to the insurance required by\u003cbr\u003ethis chapter becomes absolute whenever injury or damage covered by said\u003cbr\u003emotor vehicle liability policy occurs; said policy may not be canceled or annulled\u003cbr\u003eas to such liability by any agreement between the insurance carrier and the\u003cbr\u003einsured after the occurrence of the injury or damage; no statement made by the\u003cbr\u003einsured or on the insured's behalf and no violation of said policy may defeat or\u003cbr\u003evoid said policy.b.The satisfaction by the insured of a judgment for such injury or damage is not a\u003cbr\u003econdition precedent to the right or duty of the insurance carrier to make\u003cbr\u003epayment on account of such injury or damage.c.The insurance carrier has the right to settle any claim covered by the policy,\u003cbr\u003eand if such settlement is made in good faith, the amount thereof is deductible\u003cbr\u003efrom the limits of liability specified in subdivision b of subsection 2 for the\u003cbr\u003eaccident out of which such claim arose.d.The policy, the written application therefor, if any, and any rider or endorsement\u003cbr\u003ewhich does not conflict with the provisions of this chapter constitute the entire\u003cbr\u003econtract between the parties.7.Any policy which grants the coverage required for a motor vehicle liability policy may\u003cbr\u003ealso grant any lawful coverage in excess of or in addition to the coverage specified\u003cbr\u003efor a motor vehicle liability policy and such excess or additional coverage is not\u003cbr\u003esubject to the provisions of this chapter. With respect to a policy which grants such\u003cbr\u003eexcess or additional coverage, the term \u0026quot;motor vehicle policy\u0026quot; applies only to that\u003cbr\u003epart of the coverage which is required by this section.8.Any motor vehicle liability policy may provide that the insured shall reimburse the\u003cbr\u003einsurance carrier for any payment the insurance carrier would not have been\u003cbr\u003eobligated to make under the terms of the policy except for the provisions of this\u003cbr\u003echapter.9.Any motor vehicle liability policy may provide for the prorating of the insurance\u003cbr\u003ethereunder with other valid and collectible insurance.10.The requirements for a motor vehicle liability policy may be fulfilled by the policies of\u003cbr\u003eone or more insurance carriers which policies together meet such requirements.11.Any binder issued pending the issuance of a motor vehicle liability policy must be\u003cbr\u003edeemed to fulfill the requirements for such policy.39-16.1-12. Notice of cancellation of policy by insurer. When an insurance carrierhas certified a motor vehicle liability policy under sections 39-16.1-09 and 39-16.1-10, the\u003cbr\u003einsurance carrier shall notify the director no later than ten days after cancellation or termination of\u003cbr\u003ethe certified insurance policy by filing a notice of cancellation or termination of the certified\u003cbr\u003einsurance policy; except that a policy subsequently procured and certified shall, on the effective\u003cbr\u003edate of its certification, terminate the insurance previously certified with respect to any motor\u003cbr\u003evehicle designated in both certificates.39-16.1-13. Other laws requiring insurance.1.This chapter does not apply to or affect policies of automobile insurance against\u003cbr\u003eliability which may now or hereafter be required by any other law of this state, and\u003cbr\u003esuch policies, if they contain an agreement or are endorsed to conform to the\u003cbr\u003erequirements of this chapter, may be certified as proof of financial responsibility\u003cbr\u003eunder this chapter.Page No. 52.This chapter may not be held to apply to or affect policies insuring solely the insured\u003cbr\u003enamed in the policy against liability resulting from the maintenance or use by\u003cbr\u003epersons in the insured's employ or on the insured's behalf of motor vehicles not\u003cbr\u003eowned by the insured.39-16.1-14. Financial responsibility may be evidenced by bond.1.Proof of financial responsibility may be evidenced by the bond of a surety company\u003cbr\u003eduly authorized to transact business within this state, or a bond with at least two\u003cbr\u003eindividual sureties each owning real estate not exempt from execution of a value\u003cbr\u003etwice the amount of such bond, which real estate must be scheduled in the bond\u003cbr\u003eapproved by a judge of a court of record, and recorded in the office of the recorder of\u003cbr\u003eeach county in which such real estate is situated, which said bond must be\u003cbr\u003econditioned for payment of the amounts specified in section 39-16.1-02. Such bond\u003cbr\u003emust be filed with the director and is not cancelable except after ten days' written\u003cbr\u003enotice to the director. Such bond constitutes a lien in favor of the state upon the real\u003cbr\u003eestate so scheduled of any surety, which lien exists for the benefit of any holder of a\u003cbr\u003efinal judgment against the person who has filed such bond, for damages, including\u003cbr\u003edamages for care and loss of services, because of bodily injury to or death of any\u003cbr\u003eperson, or for damages because of injury to or destruction of property, including the\u003cbr\u003eloss of use thereof, resulting from the ownership, maintenance, use, or operation of\u003cbr\u003ea motor vehicle after such bond is recorded.2.If such judgment rendered against the principal on such bond is not satisfied within\u003cbr\u003esixty days after it has become final, the judgment creditor may, for the judgment\u003cbr\u003ecreditor's own use and benefit and at the judgment creditor's sole expense, bring an\u003cbr\u003eaction or actions in the judgment creditor's own name against the company or\u003cbr\u003epersons executing such bond, including an action or proceeding to foreclose any lien\u003cbr\u003ethat may exist upon the real estate of a person who has executed such bond.39-16.1-15. Deposit of cash with the Bank of North Dakota.1.Proof of financial responsibility may be evidenced by the certificate of the Bank of\u003cbr\u003eNorth Dakota that the person named therein has deposited with it twenty-five\u003cbr\u003ethousand dollars in cash, or securities such as may legally be purchased by savings\u003cbr\u003ebanks or for trust funds of a market value of twenty-five thousand dollars. The Bank\u003cbr\u003eof North Dakota may not accept any such deposit and issue a certificate therefor and\u003cbr\u003ethe director may not accept such certificate unless accompanied by evidence that\u003cbr\u003ethere are no unsatisfied judgments of any character against the depositor in the\u003cbr\u003ecounty where the depositor resides.2.Such deposit must be held by the Bank of North Dakota to satisfy, in accordance\u003cbr\u003ewith the provisions of this chapter, any execution on a judgment issued against such\u003cbr\u003eperson making the deposit for damages, including damages for care and loss of\u003cbr\u003eservices, because of bodily injury to or death of any person, or for damages because\u003cbr\u003eof damages to or destruction of property, including the loss of use thereof, resulting\u003cbr\u003efrom the ownership, maintenance, use, or operation of a motor vehicle after such\u003cbr\u003edeposit was made. Money or securities so deposited are not subject to attachment\u003cbr\u003eor execution unless such attachment or execution arises out of a suit for damages\u003cbr\u003eas aforesaid.39-16.1-16.Employment or family connection in lieu of proof of financialresponsibility. Whenever any person required to give proof of financial responsibility hereunder\u003cbr\u003eis or later becomes an operator in the employ of any owner, or is or later becomes a member of\u003cbr\u003ethe immediate family or household of the owner, the director shall accept proof given by such\u003cbr\u003eowner in lieu of proof by such other person to permit such other person to operate a motor\u003cbr\u003evehicle for which the owner has given proof as herein provided. The director shall designate the\u003cbr\u003erestrictions imposed by this section on the face of such person's license.Page No. 639-16.1-17. Release of bond or deposit on making other proof of responsibility.1.The director shall consent to the cancellation of any bond or certificate of insurance\u003cbr\u003eor the director shall direct and the Bank of North Dakota shall return any money or\u003cbr\u003esecurities to the person entitled thereto upon the substitution and acceptance of\u003cbr\u003eother adequate proof of financial responsibility pursuant to this chapter.2.The director may not consent to the cancellation of any bond or the return of any\u003cbr\u003emoney or securities in the event any action for damages upon liability covered by\u003cbr\u003esuch proof is then pending or any judgment upon any such liability is then\u003cbr\u003eunsatisfied, or in the event the person who has filed such bond or deposited such\u003cbr\u003emoney or securities has, within one year immediately preceding such request been\u003cbr\u003einvolved as an operator or owner in any motor vehicle accident resulting in injury or\u003cbr\u003edamage to the person or property of others. An affidavit of the applicant as to the\u003cbr\u003enonexistence of such facts, or that the applicant has been released from all of the\u003cbr\u003eapplicant's liability, or has been finally adjudicated not to be liable, for such injury or\u003cbr\u003edamage, is sufficient evidence thereof in the absence of evidence to the contrary in\u003cbr\u003ethe records of the director.39-16.1-18. Procedure on failure of proof on file. Whenever any proof of financialresponsibility filed under the provisions of this chapter no longer fulfills the purposes for which\u003cbr\u003erequired, the director shall, for the purpose of this chapter, require other proof as required by this\u003cbr\u003echapter and shall suspend the license or the nonresident's operating privilege upon failure to file\u003cbr\u003esuch other proof as required.39-16.1-19. Cancellation of bond or return of deposit.1.The director shall upon request consent to the immediate cancellation of any bond or\u003cbr\u003ecertificate of insurance, or the director shall direct and the Bank of North Dakota\u003cbr\u003eshall return to the person entitled thereto any money or securities deposited\u003cbr\u003epursuant to this chapter as proof of financial responsibility, or the director shall waive\u003cbr\u003ethe requirement of filing proof, in any of the following events:a.At any time after one year from the date such proof was required when, during\u003cbr\u003ethe one-year period preceding the request, the director has not received record\u003cbr\u003eof a conviction or a forfeiture of bail which would require the revocation of the\u003cbr\u003elicense or operating privilege, or both, of the person by or for whom such proof\u003cbr\u003ewas furnished.b.The death of the person on whose behalf such proof was filed or the permanent\u003cbr\u003eincapacity of such person to operate a motor vehicle.c.The surrender of the person's license to the director by the person who has\u003cbr\u003egiven proof.2.The director may not consent to the cancellation of any bond or the return of any\u003cbr\u003emoney or securities in the event any action for damages upon a liability covered by\u003cbr\u003esuch proof is then pending or any judgment upon any such liability is then\u003cbr\u003eunsatisfied, or in the event the person who has filed such bond or deposited such\u003cbr\u003emoney or securities has, within one year immediately preceding such request, been\u003cbr\u003einvolved as an operator or owner in any motor vehicle accident resulting in injury or\u003cbr\u003edamage to the person or property of others. An affidavit of the applicant as to the\u003cbr\u003enonexistence of such facts, or that the applicant has been released from all of the\u003cbr\u003eapplicant's liability, or has been finally adjudicated not to be liable, for such injury or\u003cbr\u003edamage, is sufficient evidence thereof in the absence of evidence to the contrary in\u003cbr\u003ethe records of the director.3.Whenever any person whose proof has been canceled or returned under\u003cbr\u003esubdivision c of subsection 1 applies for a license within a period of one year fromPage No. 7the date proof was originally required, the application must be refused. The person's\u003cbr\u003eoperator's license and driving privileges remain under suspension or revocation until\u003cbr\u003ethe applicant reestablishes proof for the remainder of the one-year period.39-16.1-20. Seizure or return of operator's license. 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