New law requires towers of motor vehicles to provide proof of insuranceThe 2007 Oregon Legislature passed Senate Bill 116, which regulates towing company practices. The law was effective January 1, 2008. The Department of Transportation’s Driver and Motor Vehicle Services (DMV) has asked the Insurance Division to help make insurers and producers aware of this new law. Several provisions of SB 116 affect insurance producers and companies. The law requires towers to have proof of insurance on file with DMV. Towers must provide an original certificate of insurance to DMV at the time they apply for or renew their towing business certificate. In addition, the law increases the amount of insurance coverage the tower must maintain for cargo transported by the person from $15,000 to $50,000. ORS chapter 822 regulates vehicle related businesses, including towers. ORS 822.205(2) requires towers to “maintain insurance in amounts and providing coverage of the type required for motor carriers under ORS chapter 825.” ORS 825.162(2) addresses cargo insurance and says that such a policy “shall bind the assurer for loss of, or damage to, property carried in, upon or attached to the motor vehicles or other equipment operated by, for or under the control of the assured, or while in the care or custody of the assured.” Senate Bill 116 also requires insurance companies to provide DMV with written notice of cancellation of a tower’s insurance policy. Notices of cancellation should be sent to: DMV Tower Insurance Cancellation Desk DMV is responsible for administering the law. Use the links below for more information or to view SB 116. If you have questions regarding these changes, please contact DMV Vehicle Programs at (503) 945-5243. |
