Ohio's original financial responsibility (FR) law was enacted over 40 years ago and most recently revised in 1997.

The FR law applies to owners of Ohio registered vehicles, motorists leasing vehicles from licensed dealers and those applying for any type of drivers license, including a probationary license. The law states that "no person shall operate or permit the operation of a motor vehicle unless proof of financial responsibility is maintained with respect to that vehicle, or in the case of a driver who is not the owner, with respect to his or her operation of that vehicle."

The purpose of the financial responsibility law is to assure compensation to victims when injuries or damages are sustained in a crash. Ohio does not have a pure compulsory automobile insurance law.

Under Ohio's FR law, motorists are required to sign a separate form acknowledging financial responsibility upon application for a new or renewed drivers license and when vehicle license plates are purchased or renewed.

There are several ways a motorist can meet FR law requirements. Only one of the following proofs of financial responsibility must be maintained:

• An auto liability insurance policy. Motorists choosing to comply through insurance will receive ID cards from their insurance company that indicate FR requirements have been met.
• A surety bond of $30,000 issued by an authorized surety or insurance company
• A certificate issued by the Ohio Bureau of Motor Vehicles (BMV) indicating that money or government bonds in the amount of $30,000 is on deposit with the Treasurer of the State
• A certificate issued by the BMV showing a bond secured by real estate having equity of at least $60,000
• A certificate of self-insurance issued by the BMV, available to those with more than 25 vehicles registered in their name or a company's name

Proof of FR is required for motorists:

• Involved in a violation requiring a court appearance
• Involved in a crash causing injury, death or more than $400 in property damage and you choose to file a Motor Vehicle Crash Report with the BMV
• Upon request by law enforcement when stopped for a traffic violation, a vehicle safety inspection or involvement in a traffic crash
• When contacted by mail through the Ohio BMV's random FR verification process

One method of proving FR is by showing an "auto insurance identification" card. ID cards are provided by insurers upon issuance or renewal of an auto insurance policy. The card should be kept with the insured vehicle so it will be readily available upon request.

When law enforcement officers request FR proof and motorists don't have it available, they are given a notice explaining the options to provide such proof. The options include:

• Sending a copy when paying the fine
• Bringing FR proof when appearing in traffic court
• Sending FR proof when requested by the BMV

Failure to comply initiates the BMV's suspension process.

If a person satisfies the law by carrying insurance, the minimum liability limits allowable by law are: bodily injury liability, $12,500 per person and $25,000 per accident; and property damage liability, $7,500 per accident.

Since some irresponsible drivers may choose to ignore the FR law, the inclusion of Uninsured and Underinsured Motorists (UM/UIM) auto insurance coverages should be considered. UM/UIM coverages provide protection for injuries caused by out-of-state drivers, at-fault uninsured motorists, hit-and-run drivers and at-fault drivers whose policy limits are insufficient to cover losses.

Uninsured Motorists Property Damage (UMPD) coverage is an option to consider when purchasing only auto liability insurance. UMPD provides coverage for damage to your vehicle if involved in an accident with an uninsured motorist. If the auto insurance policy includes collision coverage, UMPD is not required to be offered.

The penalties for FR law violation depend on the number of offenses within a five-year period and are provided in the chart on the next page. The second chart provides county FR law suspension activity for the first nine months of 1998 and 1999, and the total cumulative number of suspensions through September 30, 1999.

These penalties also apply to a vehicle owner who is not involved in a traffic offense but whose automobile is involved. This means that if a motorist loans a car to someone and that person is involved in an accident, both are required to prove FR.

Since September, 1997, first-time FR law violators are given occupational driving privileges after serving 30 days of the 90-day license suspension period, as long as they have obtained FR compliance and paid reinstatement fees. First-time offenders accruing 12 points under Ohio's point system for traffic violations or convicted of a serious moving violation are ineligible for occupational driving privileges. This law change was included in Am. Sub. HB 261.

Aside from the penalties noted on the following page, other provisions of Ohio's FR law include:

• Requirement that FR law information become part of Ohio's driver education curriculum
• Provision establishing that insurance companies are prohibited from increasing policyholder insurance rates based solely on involvement in a single, not-at-fault accident or any not-at-fault accident with an uninsured driver
• Provision prohibiting insurers from considering an applicant's lack of insurance when establishing a new rate, unless actuarially justified
• Any auto insurance policy not providing sufficient coverage to satisfy the FR law must include a clear, written warning indicating that it does not meet FR law requirements
• The establishment of a task force to study FR enforcement and verification procedures, including the concept of a new FR random verification program

The Task Force on the Enforcement of the Financial Responsibility Laws of Ohio released its final report to the Governor during 1998. The task force was organized to review the effectiveness of Ohio's FR law and to make future recommendations. The task force reported that, in general, Ohio's FR laws are working as intended and accomplished the goals set out in the original legislation. Modifications in the law based on the task force's review included a simplification in the insurance verification process, the creation of a better system for monitoring compliance, and working with law enforcement to improve its efforts in confirming compliance during routine stops for vehicle traffic violations.

The law passed in 1995 called for the formation of this task force in efforts to also seek ways to verify FR compliance, which is where the FR random verification program got its start. The pilot program began on December 7, 1998.

The Ohio BMV's random verification program is the latest step in ensuring greater compliance with the state's FR law. This process includes mailing letters to a random selection of 5% of the 9.8 million registered vehicle and noncommercial truck owners in Ohio, or about 280,000 notices a year.

Recipients of letters are given 21 days to respond to this first request for FR proof. The BMV then allows up to 10 days before the first "Notice of Suspension" is mailed. This "Notice" allows a 60-day grace period in which the individual may still provide FR proof prior to the suspension taking effect. A second "Notice of Suspension" is sent via certified mail 42 days before the start of the suspension. This is to ensure that the BMV has the proper mailing address for the registered vehicle owner. Considering this process, there is actually a three-month period for an individual to prove FR compliance prior to being placed under suspension.

For answers to questions regarding the random verification program, contact the FR hotline at 1-800-636-9825.

Drivers involved in a motor vehicle crash resulting in bodily injury, death or causing more than $400 in property damage should consider filing a Motor Vehicle Crash Report with the BMV, Financial Responsibility Division, if they suspect that the others involved in the crash were uninsured.

This report is different from reports taken by law enforcement officials at the accident scene. This optional filing process can be done within six months of the crash date. Once filed, the report provides the BMV with necessary information to contact the alleged driver(s) for FR proof. If proof cannot be provided, the license suspension process begins. Ohio Motor Vehicle Crash Report forms are available from Ohio Highway Patrol posts, insurance agents or companies, other law enforcement agencies or the Ohio Insurance Institute.

• Lose drivers license for at least 30 days, up to a year
• No driving privileges during suspension (at least 30, up to 90 days)
• License plates and vehicle registration suspension
• License reinstatement fees of $75-$500
• $50 penalty for failing to surrender license, plates or vehicle registration to the BMV
• Requirement to obtain auto insurance. If violator cancels or nonrenews insurance within a five-year monitoring period, the insurance agent or company will notify the BMV.
• Vehicle immobilization and confiscation of plates for 30-60 days for violating FR suspension. Third and subsequent offenses may mean vehicle forfeiture and a five-year moratorium on vehicle registrations.