# Title 39 — Motor Vehicles

## Chapter 39-16 — Financial Responsibility of Owners and Operators

### § 39-16-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:
1. "Commissioner" or "director" means the director of the department of transportation of
this state as provided by section 24-02-01.3, acting directly or through authorized
agents.
2. "Driver" means every person who is in actual physical control of a motor vehicle
whether or not licensed as a driver under the laws of this state.
3. "Judgment" means any judgment which has become final by expiration without appeal
of the time within which an appeal might have been perfected, or by final affirmation on
appeal, rendered by a court of competent jurisdiction of any state of the United States,
upon a claim for relief arising out of ownership, maintenance, or use of any motor
vehicle, for damages, including damages for care and loss of services, because of
bodily injury to or death of any person, or for damages because of injury to or
destruction of property, including the loss of use thereof, or upon a claim for relief on
an agreement of settlement for such damages.
4. "License" means any license, temporary instruction permit, or temporary license
issued under the law of this state pertaining to the licensing of persons to operate
motor vehicles.
5. "Motor vehicle" includes every self-propelled vehicle, including trailers and semitrailers
designed for use with these vehicles. The term does not include special mobile
equipment or an electric bicycle.
6. "Nonresident" means every person who is not a resident of this state.
7. "Nonresident's operating privilege" means the privilege conferred upon a nonresident
by the laws of this state pertaining to the operation in this state by that person of a
motor vehicle, or the use of a motor vehicle owned by that person.
8. "Owner" means a person who holds the legal title of a motor vehicle, or in the event a
motor vehicle is the subject of an agreement for the conditional sale or lease thereof
with the right of purchase upon performance of the condition stated in the agreement
and with an immediate right of possession vested in the conditional vendee or lessee,
or in the event a mortgagor of a vehicle is entitled to possession, then such conditional
vendee or lessee or mortgagor must be deemed the owner for the purposes of this
chapter.
9. "State" means any state, territory, or possession of the United States, the District of
Columbia, or any province of the Dominion of Canada.
### § 39-16-02. Rules - Notice of proposed suspension.

The director shall have the powers and perform the duties imposed by this chapter and may
make rules for that purpose. Notice of a proposed suspension under this chapter must be given
under section 39-06-33.
### § 39-16-03. Driving records - Not admissible in evidence - Fee.

1. The director upon request shall furnish any person a certified abstract of the operating
record of any individual, source document for the abstract entry, or record of
clearance, subject to this title. The abstract must include the convictions, adjudications,
and admissions of commission of traffic offenses of any driver and suspensions,
revocations, and restrictions of an individual's operator's license. Any person, except
the subject of the record, a law enforcement agency, a judicial officer, or another
licensing jurisdiction functioning in that person's official capacity, requesting the
abstract, source documents in aggregate form, or record of clearance shall indicate in
writing the reason for the request and shall identify the person for whom or which the
request is made and the intended recipient of the record.

2. Copies of abstracts are not admissible as evidence in any civil or criminal trial arising
out of a motor vehicle accident. Upon request and subject to the provisions of this title,
the director shall furnish an operating record or complete operating record to the
subject of the record or to law enforcement or judicial officers.
3. A fee of three dollars must be paid for each abstract of any operating record, operating
record, complete operating record, or record of clearance. A reasonable fee must be
paid for each source document. The director may not assess a fee to a law
enforcement agency, a judicial officer, or another licensing jurisdiction. The director
shall send an additional copy of the abstract, source document if requested in
aggregate form, or record of clearance to the driver whose record was requested,
accompanied by a statement identifying the person making the request, identifying the
person for whom or which the request is made, identifying the intended recipient of the
record, and providing the reason for the request. An additional copy of the abstract or
record of clearance may not be sent to a driver if the request for the record was made
by the federal bureau of investigation or the United States central intelligence agency,
or agents, or by any law enforcement agency or judicial officer.
4. A requester may provide the department with a list of names of drivers and may
request any source documents from the department relating to the listed drivers for a
set time period. The department shall provide this information in hard copy or
electronic format. If in order to provide the information by electronic format the
department sets up a computer program, the department may charge a requester a
reasonable charge for a setup fee. This charge may not exceed the actual cost to set
up the computer program. A requester of source documents in aggregate form shall
pay the director a reasonable fee for making and mailing to the driver whose record
was requested an additional copy of the document as it relates to that driver.
### § 39-16-03.1. Entries on driver's record abstract confidential.

Notwithstanding any other provision of this chapter, the following entries on a driver's record
or abstract are not available to the public, except for statistical purposes, other than by order of
a court of competent jurisdiction accompanied by a fee of twenty-five dollars:
1. An entry more than three years old.
2. After the period of suspension ceases, an entry concerning a suspension under
subsection 3, 4, 5, or 6 of section 39-06-03 or subsection 2, 5, or 6 of section
39-06-32.
3. An entry concerning a suspension as the result of a person under twenty-one years of
age who has an alcohol concentration of at least two one-hundredths of one percent
but under eight one-hundredths of one percent by weight within two hours after driving
or being in actual physical control of a vehicle.
### § 39-16-04. Suspension of license for neglect to report accident.

The director may suspend the license, or any nonresident's operating privilege, of any
person who willfully fails, refuses, or neglects to make report of a traffic accident as required by
the laws of this state.
### § 39-16-05. Suspension of license and when not applicable.

1. The director, within ninety days after the receipt of a report of a motor vehicle accident
within this state for which a driver is required to file a report under section 39-08-09,
shall suspend the license or nonresident operating privilege of each driver of each
vehicle in any manner involved in the accident unless the driver deposits security as
provided in sections 39-16-09 and 39-16-10 in a sum which is sufficient in the
judgment of the director to satisfy any judgment or judgments for damages resulting
from the accident as may be recovered against such driver. Notice of suspension and
opportunity for hearing must be sent by the director to the driver not less than ten days
prior to the effective date of the suspension and must state the amount required as
security. However, if a driver, either resident or nonresident, involved in the accident

purchases an insurance policy with at least the amount of coverage required by this
section, and files proof and satisfies financial responsibility requirements thereof with
the director, that driver may retain the license or privilege until the driver has accepted
responsibility for the accident or agreed to a settlement of claims arising from the
accident or until a court of this state has determined that the driver was negligent or
responsible for the accident in whole or in part. If the driver is found negligent or
responsible for the accident, in whole or in part, the license or privilege must be
suspended and will not be returned until the driver complies with this chapter.
2. This section does not apply under the conditions stated in section 39-16-06, or:
a. To a driver, if the driver is the owner of the motor vehicle involved in the accident
and had in effect at the time of such accident an automobile liability policy with
respect to the motor vehicle involved in the accident, affording substantially the
same coverage as is required for proof of financial responsibility under chapter
39-16.1.
b. To a driver, if not the owner of the motor vehicle, if there was in effect at the time
of the accident an automobile liability policy or bond with respect to the driver's
operation of the motor vehicle, affording substantially the same coverage as
required for proof of financial responsibility under chapter 39-16.1.
c. To a driver, if the liability of the driver for damages resulting from the accident is,
in the judgment of the director, covered by any other form of liability insurance
policy or bond or certificate of self-insurance under section 39-16-32.
3. No such policy or bond is effective under this section unless by an insurance carrier or
surety company authorized to do business in this state, except that if the motor vehicle
was not registered in the state, or was a motor vehicle which was registered elsewhere
than in this state at the effective date of the policy or bond, or the most recent renewal
thereof, the policy or bond is not effective under this section unless the insurance
carrier or surety company, if not authorized to do business in this state, shall execute a
power of attorney authorizing the director to accept service, on its behalf, of notice or
process in any action upon the policy or bond arising out of the accident; provided,
every such policy or bond is subject, if the accident has resulted in bodily injury or
death, to a limit, exclusive of interest and costs, of not less than twenty-five thousand
dollars because of bodily injury to or death of one person in any one accident and,
subject to the limit for one person, to a limit of not less than fifty thousand dollars
because of bodily injury to or death of two or more persons in any one accident, and, if
the accident has resulted in injury to or destruction of property to a limit of at least
twenty-five thousand dollars because of injury to or destruction of property of others in
any one accident. Upon receipt of notice of the accident, the insurance carrier or
surety company which issued the policy or bond shall furnish for filing with the director
a written notice that the policy or bond was in effect at the time of the accident, or the
department may rely upon the accuracy of the information and the required report of
an accident as to the existence of insurance or a bond unless and until the department
has reason to believe that the information is erroneous.
### § 39-16-06. When requirements as to security and suspension do not apply.

The requirements as to security and suspension in section 39-16-05 do not apply:
1. To the driver of a motor vehicle involved in an accident wherein no injury or damage
was caused to the person or property of any one other than such driver.
2. To the driver of a motor vehicle if at the time of the accident the vehicle was stopped,
standing, or parked and whether attended or unattended, except that the requirements
of this chapter apply in the event the director determines that any such stopping,
standing, or parking of the vehicle was illegal or that the vehicle was not equipped as
required by the laws of this state and that any such violation contributed to the
accident.
3. If prior to the date that the director would otherwise suspend a license or nonresident's
operating privilege under section 39-16-05, there must be filed with the director
evidence satisfactory to the director that the person who would otherwise have to file

security has been released from liability or been finally adjudicated not to be liable or
has executed a confession of judgment, payable when and in such installments as the
parties have agreed to, or has executed a duly acknowledged written agreement
providing for the payment of an agreed amount in installments, with respect to all
claims for injuries or damages resulting from the accident.
### § 39-16-07. Release from suspension of license.

The license or nonresident's operating privilege suspended as provided in section 39-16-05
must remain so suspended and may not be renewed nor may any such license be issued to
such person until:
1. Such person deposits or there is deposited on the person's behalf the security required
under section 39-16-05;
2. One year has elapsed following the date of such accident and no evidence satisfactory
to the director has been filed with the director that during such period an action for
damages arising out of such accident has been instituted; or
3. Evidence satisfactory to the director has been filed with the director of a release from
liability, or a final adjudication of nonliability, or a confession of judgment, or a duly
acknowledged written agreement, in accordance with subsection 3 of section
39-16-06; provided, in the event there is any default in the payment of any installment
under any confession of judgment, then upon notice of such default, the director shall
forthwith suspend the license or nonresident's operating privilege of such persons
defaulting which may not be restored unless and until the entire amount provided for in
said confession of judgment has been paid; and provided further, that in the event
there is any default on the payment of any installment under any duly acknowledged
written agreement, then, upon notice of such default, the director shall forthwith
suspend the license or nonresident's operating privilege of such person defaulting
which may not be restored unless and until such person deposits and thereafter
maintains security as required under section 39-16-05 in such amount as the director
may then determine, or one year has elapsed following the date when such security
was required and during such period no action upon such agreement has been
instituted in a court in this state.
### § 39-16-08. Requirements of one not licensed.

In case the driver or the owner of a motor vehicle involved in an accident within this state
has no license, the person may not be allowed a license until the person has complied with the
requirements of this chapter to the same extent that would be necessary if, at the time of the
accident, the person had held a license.
### § 39-16-09. Director may fix, reduce, or increase requirement.

The security required under this chapter must be in such form and amount as the director
may require but in no case in excess of the limits specified in section 39-16-05 in reference to
the acceptable limits of a policy or bond. The person depositing security shall specify in writing
the person in whose behalf the deposit is made, and at any time while such deposit is in the
custody of the director or state treasurer, the person depositing it may in writing amend the
specification of the person on whose behalf the deposit is made to include an additional person;
provided, that a single deposit of security shall be applicable only on behalf of a person required
to furnish security because of the same accident. The director may reduce or increase the
amount of security ordered in any case if, in the director's judgment, the amount ordered is
excessive or inadequate. In case the security originally ordered has been deposited, the excess
deposited over the reduced amount must be returned to the depositor or the depositor's
personal representative forthwith, notwithstanding the provisions of section 39-16-10.

### § 39-16-10. Deposit of security with Bank of North Dakota - Release - How payment

made.
1. Security deposited in compliance with the requirements of this chapter must be placed
by the director in the custody of the Bank of North Dakota and must be applied as in
subsection 2 only to the payment of a judgment rendered against the person on whose
behalf the deposit was made, for damages arising out of the accident in question in an
action at law, begun not later than one year after the date of such accident, or within
one year after the date of deposit of any security under subsection 3 of section
39-16-07, and such deposit or any balance thereof must be returned to the depositor
or the depositor's personal representative, when evidence satisfactory to the director
has been filed with the director that there has been a release from liability, or a final
adjudication of nonliability, or a confession of judgment, or a duly acknowledged
agreement, in accordance with subsection 3 of section 39-16-06, or whenever, after
the expiration of one year from the date of the accident, or within one year after the
date of deposit of any security under subsection 3 of section 39-16-07, the director is
given reasonable evidence that there is no such action pending and no judgment
rendered in such action left unpaid. Upon certification by the director, the Bank of
North Dakota shall return any security deposited with the director under the provisions
of this chapter to the person entitled thereto except as provided for in subsection 3.
2. Such deposit must be held by the Bank of North Dakota to satisfy, in accordance with
the provisions of this chapter, any execution on a judgment issued against the person
for whom such deposit was made, for damages, including damages for care and loss
of services, because of bodily injury to or death of any person, or for damages
because of injury to or destruction of property, including the loss of use thereof,
resulting from the ownership, maintenance, use, or operation of a motor vehicle in the
accident which resulted in the requirement for the deposit of such security. Money or
securities so deposited shall not be subject to attachment or execution unless such
attachment or execution arises out of a suit for damages as aforesaid.
3. All payments and refunds made from cash deposits in the Bank of North Dakota under
this chapter must be made upon a warrant-check issued by the department of
transportation after submission of a duly authorized voucher.
### § 39-16-11. Record not admissible as evidence.

Neither the report required, the action taken by the director pursuant to this chapter, the
findings, if any, of the director upon which action is based, nor the security filed, nor the
insurance carried or furnished as provided in this chapter may be referred to in any way, nor be
any evidence of the negligence or due care of either party, at the trial of any action at law to
recover damages.
### § 39-16-12. Notice of failure to satisfy judgment.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-13. Suspension of license - Temporary release.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-14. Satisfaction of judgment.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-15. Installment payments.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-16. Revocation of license for reasons other than provisions of this chapter.

Repealed by S.L. 1967, ch. 313, § 3.

### § 39-16-17. Proof of financial responsibility.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-18. Proof by showing insurance coverage.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-19. Nonresident owner.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-20. Motor vehicle liability policy.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-21. Notice of proposed cancellation of policy by insurer.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-22. Other laws requiring insurance.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-23. Financial responsibility may be evidenced by bond.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-24. Deposit of cash with state treasurer.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-25. Employment or family connection in lieu of proof of financial responsibility.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-26. Release of bond or deposit on making other proof of responsibility.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-27. Procedure on failure of proof on file.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-28. Cancellation of bond or return of deposit.

Repealed by S.L. 1967, ch. 313, § 3.
### § 39-16-29. Seizure or return of operator's license.

Repealed by S.L. 2009, ch. 328, § 8.
### § 39-16-30. Operating while under suspension or revocation - Penalties.

Repealed by S.L. 2005, ch. 330, § 8.
### § 39-16-31. Federal, state, or municipal ownership.

This chapter does not apply with respect to any motor vehicle owned and operated by the
United States, this state, or any political subdivision of this state or any municipality therein.
### § 39-16-32. Who may be self-insurer.

1. Any person in whose name more than twenty-five motor vehicles are registered may
qualify as a self-insurer by obtaining a certificate of self-insurance issued by the
director as provided in subsection 2.
2. The director may, upon the application of any person, issue a certificate of
self-insurance when the director is satisfied that the person is possessed and will
continue to be possessed of ability to pay any judgment obtained against the person.

3. Upon not less than five days' notice and a hearing pursuant to such notice, the director
may cancel a certificate of self-insurance if the director is satisfied that the person is
not possessed or will not continue to be possessed of ability to pay any judgment
obtained against the person. Failure to pay any judgment within thirty days after such
judgment has become final constitutes a reasonable ground for the cancellation of a
certificate of self-insurance.
### § 39-16-33. Effect on certain laws.

Repealed by omission from this code.
### § 39-16-34. Not retroactive.

Repealed by omission from this code.
### § 39-16-35. May rely on other process.

Repealed by omission from this code.
### § 39-16-36. Citation.

Repealed by omission from this code.
### § 39-16-37. Effective date.

Repealed by omission from this code.
