Bad day for DMV

Wednesday, Feb. 5, 1997 | 11:59 a.m.

CARSON CITY -- Legislators are putting pressure on the state Department of Motor Vehicles and Public Safety to refund up to $300,000 to thousands of motorists victimized by an agency snafu.

Assemblywoman Vonne Chowning, D-North Las Vegas, directed the department to do an accounting to determine which of the 6,000 motorists may be due a refund.

"If these people have been charged in error, they (the department) should have to return that," said Chowning, chairman of the Assembly Transportation Committee, which held a two-hour meeting Tuesday on the insurance verification problems.

Assemblyman John Carpenter, R-Elko, a leading critic of the department, said the refunds should go back to January 1996. "There's been a mistake made and I don't see why they should not get their money back."

Nevada law requires motorists to be covered by insurance. And the department has been given the job of finding out who's driving without coverage. They send notices to those motorists they believe are without insurance. The individual has 10 days to return the notice. If he or she doesn't, their vehicle registration is suspended.

If they have insurance but don't respond, they are still docked $50.

Douglas Kraemer, deputy director for the department, told the committee, "We've got a problem but we have the ability and the commitment to fix it."

Clay Thomas, assistant chief of registration, outlined a number of steps the department has taken to cure the problem.

Kraemer said the $300,000 has been collected from those who did not respond when informed they may not have insurance or from those who let their policy lapse on motor homes or motorcycles during the winter months they are not in use.

These individuals did not cancel their registration when they let their insurance lapse so they were on the list of those who were notified. He said it will take some time to gather the information on who might get a refund, since it must be done manually.

Chowning appointed a subcommittee, headed by Assemblyman Tom Collins, D-North Las Vegas, to work with insurance agents, the department and others in drafting legislation.

Lauren House, executive vice president of the Nevada Association of Independent Insurance Agents, suggested the law be changed to eliminate the $50 fine.

"You're catching those who are insured and this is punitive," House said.

He and others suggested that the department check only on those persons who cancel their insurance policies, rather than every motorist, every month. He said the department should permit a motorist 45 days to respond, rather than 10.

Carpenter has introduced a bill to suspend the insurance verification program for several months until the problems are fixed.