§ 31-31-7 - Requirements as to policy or bond.
SECTION 31-31-7
§ 31-31-7 Requirements as to policy orbond. – (a) No policy or bond shall be effective under § 31-31-6 unless issued byan insurance company or surety company authorized to do business in this state,except as provided in subsection (b) of this section, nor unless the policy orbond is subject, if the accident has resulted in bodily injury or death, to alimit, exclusive of interest and costs, of not less than twenty-five thousanddollars ($25,000) because of bodily injury to or death of one person, in anyone accident and subject to the limit for one person, to a limit of not lessthan fifty thousand dollars ($50,000) because of bodily injury to or death oftwo (2) or more persons in any one accident, and if the accident has resultedin injury to, or destruction of, property to a limit of not less thantwenty-five thousand dollars ($25,000) because of injury to or destruction ofproperty of others in any one accident.
(b) No policy or bond shall be effective under § 31-31-6with respect to any vehicle which was not registered in this state or was avehicle which was registered elsewhere than in this state at the effective dateof the policy or bond or the most recent renewal thereof, unless the insurancecompany or surety company issuing the policy or bond is authorized to dobusiness in this state, or if the company is not authorized to do business inthis state, unless it shall execute a power of attorney authorizing theadministrator of the division of motor vehicles to accept service on its behalfof notice or process in any action upon the policy or bond arising out of theaccident.
(c) The division of motor vehicles may rely upon the accuracyof the information in a required report of an accident as to the existence ofinsurance or a bond unless and until the division of motor vehicles has reasonto believe that the information is erroneous.