Insurance suspensions spur bill to fix process

AUGUSTA – A number of Maine motorists have had their vehicle registrations yanked because of a new law that requires insurers to tell the state when a policy is terminated. But many of those motorists were simply switching insurance companies or transferring coverage.

A flurry of complaints to legislators has resulted in a bill, LD 634, that has won the endorsement of the Transportation Committee’s majority.

The measure calls for 15-day delays before the state sends out cancellation notices, allowing time for motorists to show they have new insurers.

The legislation also would allow state motor vehicle officials to electronically accept evidence of insurance by January 2007.