(a) Notwithstanding any other provision of this chapter, if the failure of the driver
of a motor vehicle involved in an accident to prove the existence of financial responsibility,
as required by Section 16020, was due to the fraudulent acts of an insurance agent or broker, the department shall
terminate any suspension action taken pursuant to Section 16070, when both of the following conditions are met:
(1) The driver provides documentation from the Department of Insurance that the insurance
agent or broker has been found to have committed fraud in the transaction of automobile
liability insurance, or provides documentation that criminal charges have been filed
against the agent or broker due to fraud or theft related to the sale of automobile
(2) The driver furnishes proof to the department that financial responsibility meeting
the requirements of Section 16021 is currently in effect.
(b) It is the intent of the Legislature in enacting this section that individuals
who are the victims of insurance fraud not be penalized for violating the financial
responsibility laws when that violation was due to the fraudulent acts of others. Persons with documented evidence of fraud involving their insurance coverage, such
as where an insurance agent accepted the premium payment for coverage but willfully
failed to obtain the coverage and led the customer to believe insurance was in effect,
should retain their driving privileges provided they give evidence that valid liability
insurance is currently in effect.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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