We have received a report from a member agent that probably deserves a reminder and word of caution.
Our agent had a Private Passenger Auto policyholder that called the agency more than a year ago to delete an auto from the policy. The agent advised the policyholder to turn the license plate in simultaneous with the deletion of the auto. The agent heard no more about this transaction until the recently. The policyholder called to report that they had received a notice of fine from DMV for $50 for non-compliance with the Financial Responsibility Act. In discussing the matter the agent discovered that the policyholder had waited several days before surrendering the license plate. DMV did not seem negotiable about the fine.
Remember that DMV compares insurance information supplies by insurers with vehicle registration information to determine compliance with the FRA. The possession of the license plate must be associated with liability insurance coverage at all times to avoid an allegation of non-compliance with FRA.