PLGeorgiamedium
A Georgia driver allows her personal auto liability policy to lapse without obtaining replacement coverage. Under O.C.G.A. § 40-2-137, the most direct statutory consequence is:
AAutomatic enrollment in the Georgia Assigned Risk Plan
BA criminal felony charge with mandatory imprisonment
CLoss of UM stacking rights on any future Georgia policy
Suspension of the vehicle's registration
Why this is the answer
Under O.C.G.A. § 40-2-137, when minimum coverage terminates the insurer notifies the Department of Revenue electronically, the department notifies the owner, and unless proof of new coverage reaches the department within 30 days the vehicle's registration is suspended by operation of law; restoring it requires proof of coverage, a $25 lapse fee, and a $60 restoration fee, and a third suspension within five years revokes the registration. Lapse does not automatically place the owner in the Assigned Risk Plan, is not a felony, and has no effect on UM stacking rights on future policies.
Studying for the Georgia Personal Lines exam?
This question comes from our PL bank. Take a free practice test — no signup.