Financial
Responsibility Suspension
Alaska has both Financial Responsibility
and Mandatory Insurance laws. The purpose of these laws is
to ensure that drivers and owners of vehicles using the streets and
highways are financially responsible for any damage or injury caused
by motor vehicle collisions and to remove financially irresponsible
drivers from the highways.
The Division of Motor Vehicles must suspend
the driver's license, privilege to drive or obtain a driver's license
of drivers who fail to comply with the Financial Responsibility law.
The suspension will occur when there is a reasonable possibility
that the driver involved in a collision will be held liable and did
not have insurance or had insufficient insurance to cover damages.
The driver can satisfy the requirements for Financial Responsibility
by providing proof that the requirements have been met in one of
the following ways:
- Submit evidence to the department that
an automobile liability insurance policy was in effect at the time
of the collision (If you submit proof of insurance prior to
the suspension date, no further action is required.) Certificate
of Insurance
- Submit releases of liability (known as a general
release) with notarized signatures of all persons who received
personal injury or property damages in the collision
- Submit settlement
agreements (known as a promissory note) with all persons seeking
damages as a result of the collision
- Deposit security in an
amount specified by the department
- Submit evidence that you were
not liable for the damages through determination of a civil
court
- Prove that you were not liable in the
collision in the Administrative
Hearing process
Drivers must reinstate their
privilege to drive at the end of their suspension period.
A person's license may also be suspended
under the Mandatory
Insurance law.
If you have additional questions you can
call, write, e-mail or
visit a DMV office.
DOA.DMV.JDL@Alaska.gov
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