CHRISMER AND SALLEE.
Read 1st time February 15, 2000, and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
AN ACT
To amend chapter 306, RSMo, relating to watercrafts by adding thereto eight new sections relating to watercraft financial responsibility, with penalty provisions.
Section A. Chapter 306, RSMo, is amended by adding thereto eight new sections, to be known as sections 306.601, 306.602, 306.603, 306.604, 306.605, 306.606, 306.607 and 306.608, to read as follows:
306.601. 1. No owner of a vessel registered in this state, or required to be registered in this state, shall operate, register or maintain registration of such vessel, or permit another person to operate such vessel, unless the owner maintains the financial responsibility which conforms to the requirements of the laws of this state. Furthermore, no person shall operate a vessel owned by another with the knowledge that the owner has not maintained financial responsibility unless such person has financial responsibility which covers the person's operation of the other's vessel.
2. For purposes of the financial responsibility requirements of sections 306.601 to 306.608, the term "vessel" shall include a motorboat of twenty-five horsepower or more, a personal watercraft as defined in section 306.010 or a sailboat powered by sail alone which is in excess of twelve feet in length.
3. A vessel owner shall maintain the owner's financial responsibility in a manner provided for in section 306.607, or with a vessel liability policy which conforms to the requirements of the laws of this state.
4. Any person who violates this section for the first time is guilty of a class B misdemeanor and any person who violates this section for the second or subsequent time is guilty of a class A misdemeanor. However, no person shall be found guilty of violating this section if the operator demonstrates to the court that he or she met the financial responsibility requirements of this section at the time the state water patrol person issued the citation and no person who received a citation for violation of this section, in the absence of an accident involving a vessel operated by such person, shall be found guilty of violating this section if the operator demonstrates to the court that he or she currently meets the financial responsibility requirements of this section.
5. Nothing in sections 306.601 to 306.608 shall be construed as prohibiting the department of insurance from approving or authorizing those exclusions and limitations which are contained in vessel liability insurance policies.
306.602. 1. Each insurer issuing vessel liability policies in this state, or an agent of the insurer, shall furnish an insurance identification card to the named insured for each vessel insured by a vessel liability policy that complies with the requirements of sections 306.601 to 306.608.
2. The insurance identification card shall include all of the following information:
(1) The name and address of the insurer;
(2) The name of the named insured;
(3) The policy number;
(4) The effective dates of the policy, including month, day and year;
(5) A description of the insured vessel, including year and make or at least five digits of the vehicle identification number; and
(6) The statement "THIS CARD MUST BE CARRIED IN THE INSURED VESSEL FOR PRODUCTION UPON DEMAND" prominently displayed on the card.
3. A new insurance identification card shall be issued when the insured vessel is changed, when an additional vessel is insured, and when a new policy number is assigned. A replacement insurance identification card shall be issued at the request of the insured in the event of loss of the original insurance identification card.
4. An insurance identification card shall be carried in the insured vessel at all times. The operator of an insured vessel shall exhibit the insurance identification card on the demand of any water patrol person who lawfully stops such operator or investigates an accident while such water patrol person is engaged in the performance of his or her duties. If the operator fails to exhibit an insurance identification card, the water patrol person shall issue a citation to the operator for a violation of section 306.601. A vessel liability insurance policy shall be satisfactory evidence of insurance in lieu of an insurance identification card.
306.603. 1. The director shall inform each owner who registers a vessel of the following:
(1) The existence of the requirement that every vessel owner in the state must maintain financial responsibility;
(2) The requirement that every vessel owner show an insurance identification card, or a copy thereof, or other proof of financial responsibility at the time of vessel registration; this notice shall be given at least thirty days prior to the month for renewal and shall be shown in bold, colored print;
(3) The penalties which apply to violations of the requirement to maintain financial responsibility;
(4) The benefits of maintaining coverages in excess of those which are required.
2. No vessel owner shall be issued registration for a vessel unless the owner, or such owner's authorized agent, signs an affidavit provided by the director of revenue at the time of registration of the vessel certifying that such owner has and will maintain, during the period of registration, financial responsibility with respect to each vessel that is owned, licensed or operated on the waters in this state. The affidavit need not be notarized, but it shall be acknowledged by the person processing the form. The affidavit shall state clearly and in bold print the following: "Any false affidavit is a crime pursuant to section 575.050 of Missouri law.". In addition, every vessel owner shall show proof of such financial responsibility by presenting his or her insurance identification card, as described in section 306.602, or a copy thereof, or some other proof of financial responsibility in the form prescribed by the director of revenue at the time of registration.
306.604. Every vessel liability policy issued to meet the requirements of this chapter shall have a minimum term of one year. Each policy payment collected by the insurer shall be sufficient to pay for at least three month's coverage under the policy, except that this restriction shall not apply to payments on policies made by way of payroll deductions.
306.605. No person shall display evidence of insurance to a water patrol person knowing there is no valid liability insurance in effect on the vessel as required pursuant to this chapter, or knowing the evidence of insurance is illegally altered, counterfeit or otherwise invalid as evidence of insurance. If the water patrol person issues a citation to a vessel operator for displaying invalid evidence of insurance, the officer shall confiscate the evidence for presentation in court. Any person convicted of violating this section is guilty of a class A misdemeanor.
306.606. No person shall alter an invalid insurance card to make it appear valid. No person knowingly shall make, sell or otherwise make available an invalid or counterfeit insurance card. Any person who violates this section is guilty of a class A misdemeanor.
306.607. Proof of financial responsibility when required pursuant to this chapter with respect to a vessel or with respect to a person who is not the owner of a vessel may be given by filing a certificate of insurance as provided as follows:
(1) Proof of financial responsibility may be furnished by filing with the director the written certificate of any insurance carrier duly authorized to do business in this state certifying that there is in effect a vessel liability policy for the benefit of the person required to furnish proof of financial responsibility. Such certificate shall give the effective date of such vessel liability policy, which date shall be the same as the effective date of the certificate, and shall designate by explicit description or by appropriate reference all vessels covered thereby, unless the policy is issued to a person who is not the owner of a vessel;
(2) (a) The nonresident owner of a vessel not registered in this state may give proof of financial responsibility by filing with the director a written certificate or certificates of an insurance carrier authorized to transact business in the state in which the vessel or vessel described in such certificate is registered, or if such nonresident does not own a vessel, then in the state in which the insured resides, provided such certificate otherwise conforms to the provisions of this chapter, and the director shall accept the same upon condition that said insurance carrier complies with the following provisions with respect to the policies so certified:
a. Said insurance carrier shall execute a power of attorney authorizing the director to accept service on its behalf of notice or process in any action arising out of a vessel accident in this state; and
b. Said insurance carrier shall agree in writing that such policies shall be deemed to conform with the laws of this state relating to the terms of vessel liability policies issued herein.
(b) If any insurance carrier not authorized to transact business in this state, which has qualified to furnish proof of financial responsibility, defaults in any said undertakings or agreements, the director shall not thereafter accept as proof any certificate of said carrier whether theretofore filed or thereafter tendered as proof, so long as such default continues.
306.608. 1. A "vessel liability policy" as said term is used in this chapter shall mean an owner's or an operator's policy of liability insurance, certified as provided in section 306.606 as proof of financial responsibility, and issued, except as otherwise provided in section 306.607 by an insurance carrier duly authorized to transact business in this state, to or for the benefit of the person named therein as insured.
2. Such owner's policy of liability insurance:
(1) Shall designate by explicit description or by appropriate reference all vessels with respect to which coverage is thereby to be granted;
(2) Shall insure the person named therein and any other person, as insured, using any such vessel or vessels with the express or implied permission of such named insured, against loss from the liability imposed by law for damages arising out of the ownership, maintenance or use of such vessel or vessels within the United States of America or the Dominion of Canada, subject to limits, exclusive of interest and costs, with respect to each such vessel, as follows: fifty thousand dollars because of bodily injury to or death of one person in any one accident and, subject to said limit for one person, one hundred thousand
dollars because of bodily injury to or death of two or more persons in any one accident, and fifty thousand dollars because of injury to or destruction of property of others in any one accident; and
(3) May exclude coverage against loss from liability imposed by law for damages arising out of the use of such vessels by a member of the named insured's household who is a specifically excluded operator in the policy.
3. Such operator's policy of liability insurance shall insure the person named as insured therein against loss from the liability imposed upon him or her by law for damages arising out of the use by him or her of any vessel not owned by him or her, within the said territorial limits and subject to the same limits of liability as are set forth above with respect to any owner's policy of liability insurance.
4. Such vessel liability policy shall state the name and address of the named insured, the coverage afforded by the policy, the premium charged therefor, the policy period and the limits of liability, and shall contain an agreement or be endorsed that insurance is provided thereunder in accordance with the coverage defined in this chapter as respects bodily injury and death or property damage, or both, and is subject to all the provisions of this chapter.
5. Such vessel liability policy need not insure any liability pursuant to any workers' compensation law nor any liability 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 any vessel nor any liability for damage to property owned by, rented to, in charge of or transported by the insured.
6. Every vessel liability policy shall be subject to the following provisions which need not be contained therein:
(1) The liability of the insurance carrier with respect to the insurance required by this chapter shall become absolute whenever injury or damage covered by said vessel liability policy occurs; said policy may not be canceled or annulled as to such liability by any agreement between the insurance carrier and the insured after the occurrence of the injury or damage; no statement made by the insured or on his or her behalf and no violation of said policy shall defeat or void said policy;
(2) The satisfaction by the insured of a judgment for such injury or damage shall not be a condition precedent to the right or duty of the insurance carrier to make payment on account of such injury or damage;
(3) The insurance carrier shall have the right to settle any claim covered by the policy, and if such settlement is made in good faith, the amount thereof shall be deductible from the limits of liability specified in subdivision (2) of subsection 2 of this section;
(4) The policy, the written application thereof, if any, and any rider or endorsement which does not conflict with the provisions of this chapter shall constitute the entire contract between the parties.
7. Any policy which grants the coverage required for a vessel liability policy may also grant any lawful coverage in excess of or in addition to the coverage specified for a vessel liability policy and such excess or additional coverage shall not be subject to the provisions of this chapter. With respect to a policy which grants such excess or additional coverage the term "vessel liability policy" shall apply only to that part of the coverage which is required by this section.
8. Any vessel liability policy 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 the provisions of this chapter.
9. Any vessel liability policy may provide for the prorating of the insurance thereunder with other valid and collectible insurance.
10. The requirements of a vessel liability policy may be fulfilled by the policies of one or more insurance carriers which policies together meet such requirements.
11. Any binder issued pending the issuance of a vessel liability policy shall be deemed to fulfill the requirement for
such a policy.
Missouri
House of Representatives