Page:United States Statutes at Large Volume 68 Part 1.djvu/167

 68 S T A T. ]

PUBLIC LAW 365-MAY 25, 1954

(f) PROVISIONS INCORPORATED IN POLICY.—Every motor vehicle liability policy shall be subject to the following provisions which need not be contained therein: 1. The liability of the insurance carrier with respect to the insurance required by this act shall become absolute whenever injury or damage covered by said motor-vehicle liability policy occurs; said policy may not be canceled or annulled as to such liability by any agreement between the insurance carrier and the insured after the occurrence of the injury or damage; no statement made by the insured or on his behalf and no violation of said policy shall defeat or void said policy. 2. The satisfaction by the insured of a judgment for such injury or damage shall not be a condition precedent to the right or duty of the insurance carrier to make payment on account of such injury or damage. 3. The insurance carrier shall have the right to settle any claim covered by the policy, and if such settlement is made in good faith, the amount thereof shall be deductible from the limits of liability specified in subdivision 2 of subsection (b) of this section. 4. The policy, the written application therefor, if any and any rider or endorsement which does not conflict with the provisions of this act shall constitute the entire contract between the parties. (g) EXCESS OR ADDITIONAL COVERAGE.—Any policy which grants the coverage required for a motor-vehicle liability policy may also grant any lawful coverage in excess of or in addition to the coverage specified for a motor-vehicle liability policy and such excess or additional coverage shall not be subject to the provisions of this Act. With respect to a policy which grants such excess or additional coverage the term "motor-vehicle liability policy" shall apply only to that part of the coverage which is required by this section. (h) REIMBURSEMENT PROVISION PERMITTED.—Any motor-vehicle liability policy may provide that the insured shall reimburse the insurance carrier for any payment the insurance carrier would not have been obligated to make under the terms of the policy except for the provisions of this Act. (i) PRORATION OF INSURANCE PERMITTED.—Any motor-vehicle liability policy may provide for the prorating of the insurance thereunder with other valid and collectible insurance. (j) MULTIPLE POLICIES.—The requirements for a motor-vehicle liability^ policy may be fulfilled by the policies of one or more insurance carriers which policies together meet such requirements. (k) BINDERS.—Any binder issued pending the issuance of a motorvehicle liability policy shall be deemed to fulfill the requirements for such a policy. SEC. 58. NOTICE OF CANCELLATION OR TERMINATION OF CERTIFIED

POLICY.—The Commissioners shall be notified of the cancellation or expiration of any motor-vehicle liability policy of insurance certified under the provisions of this article or of any surety or real estate bond at least ten days before the effective date of such cancellation or expiration. I n the absence of such notice of cancellation or expiration said policy of insurance shall remain in full force and eifect that any policy subsequently procured and certified shall on the effective date of its certification terminate the insurance previously certified with respect to any vehicle designated in both certificates. Upon receipt of such notice of cancellation or expiration the said Commissioners shall require other evidence of ability to respond in damages and upon failure to furnish the same before the effective date of such cancellation or expiration, the license and all of the registration certificates of the

135

�