Michigan Automobile Insurance Placement Facility (MAIPF) Producer Sign In Or Register

06/25/2017

Repeat Offender

Check the status of customers who may be subject to restrictions under the repeat offender laws by using the Repeat Offender Registration Status Inquiry

If the applicant(s) cannot produce a license, it may be a good indication that they may not be allowed to purchase a vehicle.  If you know the full name and date of birth of the individual(s), you can obtain the drivers license number by calling any Secretary of State branch office.  Additional Information


NOTICE TO PRODUCERS

DATE: May 23, 2000
FROM: Terri A. Miller, CPCU
General Manager, MAIPF
SUBJECT: Repeat Offender Legislation

Effective June 1, 2000, "Repeat Offender" legislation (MCL 257.219) makes certain drivers ineligible to register vehicles in the state of Michigan.

Drivers who have the following convictions are affected:

    • 2 or more alcohol-related convictions within 7 years.
    • 3 or more convictions for driving while suspended or revoked within 7 years.
    • 3 or more alcohol-related convictions within 10 years.

The Department of State will notify approximately 50,000 drivers that they meet the above criteria and are therefore ineligible to purchase or register a vehicle on or after June 1, 2000. Current registrations will be valid until their expiration or until the vehicle is sold, whichever comes first; however, the "repeat offender" may not drive. These restrictions are in effect until the driver is relicensed. Automobile dealerships have been instructed how to identify these drivers. The name of the "repeat offender" may not appear anywhere in the transaction, including the financing agreement.

The types of vehicles impacted that can be insured through the MAIPF are passenger vehicles, motor homes, commercial vehicles and pickups. The denial of registration does not impact company-owned vehicles, unless the "repeat offender" is listed as owner, co-owner, lessee or co-lessee. However, the "repeat offender" is not able to drive any vehicle until relicensed.

Newly purchased vehicles can be titled and registered in the name of a family member; current titles can be transferred to a family member, but only with the benefit of a court order. To transfer title to a non-family member, the owner must complete the full vehicle sale process, including payment of state sales taxes. New penalties were also enacted for the following crimes:

    • Driving While License Suspended Causing Injury – 5 year felony
    • Driving While License Suspended Causing Death – 15 year felony
    • Allowing another Person to Drive While Suspended Causing Injury – 2 year felony
    • Allowing another Person to Drive While Suspended Causing Death – 5 year felony

This legislation impacts the MAIPF application process. Therefore, please note the following:

  • Carefully review household and ownership situations with the applicant. Technically, the "repeat offender" has no insurable interest in a vehicle once the current registration expires. At that time, the title must be transferred or the vehicle must be sold in order to re-register the vehicle. Facility polices in force for a "repeat offender" must be cancelled and rewritten at the time of such transfer or sale. Provide information on the "repeat offender" in the REMARKS section of the application. Remember that "repeat offenders" may not drive any vehicle.
  • If applicants submit a current registration as proof of ownership, vehicles may be insured with the "repeat offender" shown as registered owner/titleholder until the current registration expires. At that time, servicing carriers will set the policy up for non-renewal. Polices may be rewritten for the new owner with proper documentation of the ownership change.
  • We recommend that you ask to see the driver’s license of all registered owners/titleholders and drivers at the time of application. In many cases, the licenses of "repeat offenders" have been confiscated and destroyed by police. If the applicant(s) cannot produce a license, it may be a good indication that they may not be allowed to purchase a vehicle.
  • We recommend that you become familiar with the penalties that can result if a "repeat offender" purchases or operates a vehicle in violation of their restrictions. In addition to the above penalties, purchasing a vehicle as a "repeat offender" is a misdemeanor, with a penalty of up to 93 days in jail and a $100 fine; selling a vehicle to a family member without the required court order can result in the same penalty. Penalties for the owner of a vehicle who allows a "repeat offender" to drive can include fines, license plate confiscation or vehicle impoundment.
  • Applicants who reside in the same household with "repeat offenders" should disclose this on an application for coverage; place this information in the REMARKS section of the application. As long as the "repeat offender" does not drive, these vehicles can be insured with their name on the registration until the current registration expires.
  • If you find that you have unknowingly insured a "repeat offender", please contact the MAIPF or the servicing carrier immediately.

Please notify us immediately if you have questions or concerns. We will attempt to provide answers through our contacts at the Secretary of State. This information will also be available on the Facility web site, http://www.maipf.org.

 

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