| RULE 15. |
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INSURANCE ON MOTOR
VEHICLES SUBJECT TO A LIEN |
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15.1
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Definitions
(4070-1) |
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a.
Motor
Vehicle Defined
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"Motor Vehicle" shall include,
but is not limited to:
1. any automobile or truck;
2. motorcycle or motorbike;
3. mobile home or house
trailer designed for travel on the public highways and/or capable of travel on the public
highways; and
4. any other vehicle licensed by any state for travel on the public highways. |
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b.
Proof of Insurance Defined
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"Proof of
Insurance" shall mean:
1. a certificate of insurance or such other written evidence of sufficient reliability from
an insurance carrier;
2. that states that collision and liability insurance is in force for a
minimum of 90 days from the meeting of creditors;
3. that states the amounts and types of coverage - with
a
maximum deductible of $500 -; and
4. lists the secured party as loss payee. |
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15.2
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Required Proof of
Insurance ( 4070-1) |
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a. Proof
of Insurance against physical damage and loss must be furnished
to the trustee and the creditor at or before the Section 341
meeting whenever a debtor elects - either by making payments through
a plan or by making adequate protection payments or by entering
into a reaffirmation agreement - to retain:
1. a motor vehicle which is subject to the lien of
a creditor holding an allowed secured claim or
2. a vehicle subject to a lease.
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b.
Failure to furnish Proof of Insurance will be presumed to
mean no insurance is in effect.
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c.
The Proof of Insurance must state that coverage will
continue for at least ninety (90) days from the date of the
Section 341 meeting.
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d. If there is already a
ninety (90) day policy in effect at the time of the Section 341
meeting, debtor must ensure that there are ninety (90) days
remaining on the policy at the time of the 341 meeting. |
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e. However, if the
debtor presents proof of paid coverage for the ninety (90) day
period immediately preceding the policy in effect at the time of
the 341 meeting, as well as proof of payment for the ninety (90)
day policy currently in effect, the debtor may extend the policy
at its normal renewal date. If the debtor fails
to furnish proof of insurance at the Section 341 meeting, the
stay shall be deemed terminated. |
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15.3 |
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Insurance
Lapse (4070-1) |
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If prior to or
subsequent to the Section 341 meeting, but during the pendency
of a case, insurance lapses on any motor vehicle subject to the provisions
of this Rule, the following procedures shall be followed: |
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a.
A creditor with an allowed claim secured on the motor vehicle
for which insurance has lapsed shall notify, in writing, the debtor and the debtor's
attorney of such lapse of insurance. Service of such notice upon the debtor and the debtor's
attorney
shall be in the manner specified in Fed.R.Bankr.P. 7004(b)(9).
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b.
The
debtor shall be enjoined from using the motor vehicle for which
insurance has lapsed as long as the motor vehicle remains uninsured.
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c.
If the debtor fails to provide proof of reinsurance for a
minimum period of ninety (90) days to the creditor within five (5) business days following
mailing of the notice provided in subsection 15.3(a) of this Rule, the stay shall be deemed
terminated upon the filing of a certification of non-insurance.
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15.4 |
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Waiver of Required
Insurance by Creditor (4070-1) |
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Notwithstanding the
above, the requirement for property collision insurance may be waived by
a creditor, but such waiver must be in writing and signed by the
creditor or its representative to be effective. |
