39-16.1-11. Motor vehicle liability policy
1. A "motor vehicle liability policy" as said term is used in this chapter means an owner's
or an operator's policy of liability insurance, certified as provided in sections
39-16.1-09 and 39-16.1-10 as proof of financial responsibility, and issued, except as
otherwise provided in section 39-16.1-10, 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:
a. Must designate by explicit description or by appropriate reference all motor
vehicles with respect to which coverage is thereby to be granted; and
b. Must insure the person named therein and any other person, as insured, using
such motor vehicle or motor vehicles 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 motor vehicles within
the United States of America or the Dominion of Canada, subject to limits
exclusive of interest and costs, with respect to each such motor vehicle, as
follows: twenty-five thousand dollars because of bodily injury to or death of one
person in any one accident and subject to said limit for one person, fifty thousand
dollars because of bodily injury to or death of two or more persons in any one
accident, and twenty-five thousand dollars because of injury to or destruction of
property of others in any one accident.
3. Such operator's policy of liability insurance must insure the person named as insured
therein against loss from the liability imposed upon the person by law for damages
arising out of the use by the person of any motor vehicle, either unlimited, or limited by
excluding certain classes or types of motor vehicles, within the same territorial limits
and subject to the same limits of liability as are set forth above with respect to an
owner's policy of liability insurance.
4. Such motor vehicle liability policy must 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 must 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 motor vehicle liability policy need not insure any liability under any workforce
safety and insurance 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 such motor
vehicle nor any liability for damage to property owned by, rented to, in charge of, or
transported by the insured.
6. Every motor vehicle liability policy is subject to the following provisions, which need not
be contained in the policy:
a. The liability of the insurance carrier with respect to the insurance required by this
chapter becomes absolute if injury or damage covered by the motor vehicle
liability policy occurs; the policy may not be canceled or annulled as to the liability
by any agreement between the insurance carrier and the insured after the
occurrence of the injury or damage; and a statement made by the insured or on
the insured's behalf and a violation of the policy do not defeat or void the policy.
This subdivision does not restrict the ability of an insurance carrier to void a motor
vehicle liability policy for which an application was made after injury or damage
occurred and does not obligate the insurance carrier to pay a claim on account of
injury or damage that occurred before the application was made.
b. The satisfaction by the insured of a judgment for injury or damage is not a
condition precedent to the right or duty of the insurance carrier to make payment
on account of the injury or damage.
c. The insurance carrier has the right to settle any claim covered by the policy, and if
the settlement is made in good faith, the amount of that settlement is deductible
from the limits of liability specified in subdivision b of subsection 2 for the accident
out of which the claim arose.
d. The policy, the written application of the policy, if any, and any rider or
endorsement that does not conflict with the provisions of this chapter constitute
the entire contract between the parties.
7. Any policy which grants the coverage required for a motor vehicle liability policy may
also grant any lawful coverage in excess of or in addition to the coverage specified for
a motor vehicle liability policy and such excess or additional coverage is not subject to
the provisions of this chapter. With respect to a policy which grants such excess or
additional coverage, the term "motor vehicle policy" applies only to that part of the
coverage which is required by this section.
8. Any motor vehicle 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 motor vehicle liability policy may provide for the prorating of the insurance
thereunder with other valid and collectible insurance.
10. The requirements for a motor vehicle 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 motor vehicle liability policy must be
deemed to fulfill the requirements for such policy.
