NY State Assembly Bill 2021-A6335B

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 04, 2022	print number 6335b
May 04, 2022	amend (t) and recommit to transportation
Jan 12, 2022	print number 6335a
Jan 12, 2022	amend (t) and recommit to transportation
Jan 05, 2022	referred to transportation
Mar 16, 2021	referred to transportation

Bill Amendments

Original

B (Active)

2021-A6335 - Details

See Senate Version of this Bill:: S4871
Current Committee:: Assembly Transportation
Law Section:: Vehicle and Traffic Law
Laws Affected:: Rpld §313 sub 4 ¶¶(a) - (i), sub 2 ¶¶(a) - (d), §317 ¶(d), add §§312-b & 312-c, amd §§312 & 312-a, V & T L
Versions Introduced in 2023-2024 Legislative Session:: A5120, S3405

2021-A6335 - Summary

Establishes an online insurance verification system for proof of insurance; allows the use of third-party vendors and providers; requires motor vehicle insurers to provide policy information to the online verification system; establishes an online insurance verification advisory council

2021-A6335 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6335
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 16, 2021
                                ___________
 
 Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
   tee on Transportation
 
 AN ACT to amend the vehicle and traffic law, in relation to establishing
   an online insurance verification system for proof of insurance
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York state vehicle insurance verification act".
   § 2. The vehicle and traffic law is amended by adding  a  new  section
 312-b to read as follows:
   §  312-B. ONLINE INSURANCE VERIFICATION SYSTEM OF MOTOR VEHICLE INSUR-
 ANCE. 1. THE COMMISSIONER  SHALL  ESTABLISH  A  SYSTEM  FOR  THE  ONLINE
 VERIFICATION OF INSURANCE. INFORMATION AVAILABLE IN THE ONLINE INSURANCE
 VERIFICATION SYSTEM SHALL BE PROVIDED BY MOTOR VEHICLE INSURERS PURSUANT
 TO  SECTION THREE HUNDRED TWELVE-C OF THIS ARTICLE. THE ONLINE INSURANCE
 VERIFICATION SYSTEM SHALL BE THE ONLY VERIFICATION SYSTEM USED TO VERIFY
 EVIDENCE OF MANDATORY VEHICLE INSURANCE AS  REQUIRED  BY  SECTION  THREE
 HUNDRED  TWELVE  OF  THIS  ARTICLE.  THE COMMISSIONER SHALL CONSULT WITH
 REPRESENTATIVES OF THE INSURANCE INDUSTRY AND PRIVATE SERVICE  PROVIDERS
 IN  DETERMINING  THE  OBJECTIVES,  DETAILS  AND DEADLINES RELATED TO THE
 ONLINE INSURANCE VERIFICATION SYSTEM.
   2. THE ONLINE INSURANCE VERIFICATION SYSTEM SHALL INCLUDE, AT A  MINI-
 MUM, THE ABILITY TO:
   (A)  SEND  REQUESTS TO INSURERS FOR VERIFICATION OF EVIDENCE OF INSUR-
 ANCE VIA WEB SERVICES ESTABLISHED BY THE INSURERS, THROUGH THE INTERNET,
 OR A SIMILAR PROPRIETARY OR COMMON CARRIER ELECTRONIC SYSTEM, IN COMPLI-
 ANCE WITH THE SPECIFICATIONS AND STANDARDS  OF  THE  INSURANCE  INDUSTRY
 COMMITTEE ON MOTOR VEHICLE ADMINISTRATION;
   (B) INCLUDE APPROPRIATE PROVISIONS TO SECURE DATA AGAINST UNAUTHORIZED
 ACCESS  AND  THE  DEPARTMENT  SHALL  MAINTAIN A HISTORICAL RECORD OF THE
 SYSTEM DATA FOR SIX TO TWELVE MONTHS FROM THE DATE OF ALL  REQUESTS  AND
 RESPONSES;
   (C)  BE UTILIZED FOR VERIFICATION OF THE EVIDENCE OF MANDATORY LIABIL-
 ITY INSURANCE COVERAGE AS PRESCRIBED BY THE LAWS OF THE STATE AND  SHALL

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09703-01-1

 A. 6335                             2
 
 BE ACCESSIBLE TO AUTHORIZED PERSONNEL OF THE DEPARTMENT, THE COURTS, LAW
 ENFORCEMENT, AND ANY OTHER ENTITIES AUTHORIZED BY THE STATE AS PERMITTED
 BY ANY STATE OR FEDERAL PRIVACY LAWS, AND THE ONLINE INSURANCE VERIFICA-
 TION  SYSTEM  SHALL  BE  INTERFACED, WHEREVER APPROPRIATE, WITH EXISTING
 STATE SYSTEMS;
   (D) INCLUDE INFORMATION WHICH SHALL  ENABLE  THE  DEPARTMENT  TO  MAKE
 INQUIRIES  TO INSURERS FOR EVIDENCE OF INSURANCE THAT IS CONSISTENT WITH
 THE INSURANCE INDUSTRY COMMITTEE ON MOTOR VEHICLE ADMINISTRATION  RECOM-
 MENDATIONS, INCLUDING SPECIFICATIONS AND STANDARDS THAT UTILIZE MULTIPLE
 DATA  ELEMENTS  FOR  GREATER MATCHING ACCURACY FROM THE NATIONAL ASSOCI-
 ATION OF INSURANCE COMMISSIONERS, VEHICLE IDENTIFICATION NUMBERS, POLICY
 NUMBERS, OR AS DESCRIBED IN THE  SPECIFICATIONS  AND  STANDARDS  OF  THE
 INSURANCE INDUSTRY COMMITTEE ON MOTOR VEHICLE ADMINISTRATION; AND
   (E) RESPOND TO EACH REQUEST FOR INSURANCE INFORMATION WITHIN A REASON-
 ABLE  AMOUNT  OF  TIME WHICH SHALL BE DETERMINED BY THE COMMISSIONER AND
 THE ONLINE INSURANCE VERIFICATION SYSTEM SHALL BE CAPABLE OF  RESPONDING
 WITHIN THE TIME ESTABLISHED.
   3.  (A)  NOTHING  IN THIS SECTION SHALL PROHIBIT THE COMMISSIONER FROM
 CONTRACTING WITH A  PRIVATE  SERVICE  PROVIDER  OR  PROVIDERS  WHO  HAVE
 SUCCESSFULLY  IMPLEMENTED  SIMILAR ONLINE INSURANCE VERIFICATION SYSTEMS
 IN OTHER STATES OR TO ASSIST IN ESTABLISHING AND MAINTAINING SUCH SYSTEM
 IN THIS STATE.
   (B) THE COMMISSIONER AND ANY PRIVATE SERVICE PROVIDER SHALL EACH SEPA-
 RATELY MAINTAIN A CONTACT PERSON FOR INSURERS DURING THE  ESTABLISHMENT,
 IMPLEMENTATION  AND  OPERATION  OF  THE  ONLINE  INSURANCE  VERIFICATION
 SYSTEM.
   4. THE COMMISSIONER SHALL PUBLISH FOR COMMENT AND THEN POST A DETAILED
 GUIDE OF THE ONLINE INSURANCE VERIFICATION SYSTEM  ON  THE  DEPARTMENT'S
 WEBSITE.
   5.  WITHIN TWO YEARS AFTER THE ONLINE INSURANCE VERIFICATION SYSTEM IS
 INSTALLED AND FULLY OPERATIONAL, THE  COMMISSIONER,  AFTER  CONSULTATION
 WITH  INSURERS,  SHALL PREPARE AND SUBMIT TO THE GOVERNOR, THE TEMPORARY
 PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEAD-
 ER OF THE SENATE AND THE  MINORITY  LEADER  OF  THE  ASSEMBLY  A  REPORT
 CONTAINING  THE  COSTS  OF  THE  ONLINE  INSURANCE  VERIFICATION  SYSTEM
 INCURRED BY THE DEPARTMENT, INSURERS AND THE PUBLIC AND  THE  EFFECTIVE-
 NESS  OF THE SUCH SYSTEM IN REDUCING THE NUMBER OF UNINSURED MOTOR VEHI-
 CLES.
   6. THE ONLINE INSURANCE VERIFICATION SYSTEM  SHALL  BE  INSTALLED  AND
 FULLY  OPERATIONAL BY DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO AND
 SHALL UNDERGO AN APPROPRIATE TESTING AND PILOT PERIOD OF NOT  LESS  THAN
 NINE  MONTHS.  UNTIL  THE SUCCESSFUL COMPLETION OF THE TESTING AND PILOT
 PERIOD, NO ENFORCEMENT ACTION SHALL BE TAKEN BASED ON THE ONLINE  INSUR-
 ANCE VERIFICATION SYSTEM.
   §  3.  The  vehicle and traffic law is amended by adding a new section
 312-c to read as follows:
   § 312-C. INSURER RESPONSIBILITIES FOR THE ONLINE  INSURANCE  VERIFICA-
 TION  SYSTEM.  1. (A) INSURERS SHALL COORDINATE WITH THE COMMISSIONER IN
 ESTABLISHING AND MAINTAINING THE ONLINE  INSURANCE  VERIFICATION  SYSTEM
 ESTABLISHED  PURSUANT TO SECTION THREE HUNDRED TWELVE-B OF THIS ARTICLE,
 AND SHALL PROVIDE ACCESS TO MOTOR VEHICLE INSURANCE POLICY STATUS INFOR-
 MATION AS PROVIDED BY ANY  RULES  AND  REGULATIONS  PROMULGATED  BY  THE
 COMMISSIONER.
   (B)  EVERY  INSURER  THAT IS LICENSED TO ISSUE MOTOR VEHICLE INSURANCE
 POLICIES OR IS AUTHORIZED TO DO BUSINESS IN THE STATE SHALL COMPLY  WITH
 THIS  SECTION  AND  SECTION  THREE  HUNDRED TWELVE-B OF THIS ARTICLE FOR

 A. 6335                             3

 VERIFICATION OF EVIDENCE OF VEHICLE INSURANCE FOR EVERY VEHICLE  INSURED
 BY  THAT  INSURER  IN THE STATE AS REQUIRED BY THE RULES AND REGULATIONS
 PROMULGATED BY THE COMMISSIONER.
   (C)  INSURERS  SHALL MAINTAIN A HISTORICAL RECORD OF THE ONLINE INSUR-
 ANCE VERIFICATION SYSTEM DATA FOR A MAXIMUM PERIOD OF  SIX  MONTHS  FROM
 THE DATE ANY REQUEST AND RESPONSE IS MADE.
   (D)  INSURERS  SHALL  RESPOND  TO  REQUESTS  FROM THE ONLINE INSURANCE
 VERIFICATION SYSTEM WITHIN THE TIME PERIOD PRESCRIBED BY THE  SPECIFICA-
 TIONS  AND  STANDARDS  SET  BY THE INSURANCE INDUSTRY COMMITTEE ON MOTOR
 VEHICLE ADMINISTRATION.
   2. (A) THIS SECTION SHALL NOT APPLY TO VEHICLES INSURED UNDER  COMMER-
 CIAL AUTO COVERAGE, HOWEVER INSURERS OF SUCH VEHICLES MAY PARTICIPATE ON
 A VOLUNTARY BASIS.
   (B)  INSURERS  SHALL  PROVIDE  COMMERCIAL  AUTOMOBILE  CUSTOMERS  WITH
 DOCUMENTATION THAT THE VEHICLE IS INSURED UNDER A COMMERCIAL AUTO  POLI-
 CY.    DOCUMENTATION  SHALL  BE AN INSURANCE IDENTIFICATION CARD CLEARLY
 MARKED IN THE TITLE WITH THE FOLLOWING, "COMMERCIAL AUTO INSURANCE IDEN-
 TIFICATION CARD".
   (C) FOR THE PURPOSES OF THIS SUBDIVISION, "COMMERCIAL  AUTO  COVERAGE"
 SHALL  BE  DEFINED AS ANY COVERAGE PROVIDED TO AN INSURED, REGARDLESS OF
 THE NUMBER OF VEHICLES OR  ENTITY  COVERED  UNDER  THE  COMMERCIAL  AUTO
 COVERAGE  AND  RATED FROM A COMMERCIAL MANUAL APPROVED BY THE DEPARTMENT
 OF FINANCIAL SERVICES.
   3. INSURERS SHALL BE IMMUNE FROM ANY CIVIL AND ADMINISTRATIVE  LIABIL-
 ITIES  FOR  A  GOOD  FAITH EFFORT TO COMPLY WITH THIS SECTION OR SECTION
 THREE HUNDRED TWELVE-B OF THIS ARTICLE.
   4. NOTHING IN THIS SECTION SHALL PROHIBIT AN INSURER  FROM  USING  THE
 SERVICES OF A THIRD-PARTY VENDOR OR PROVIDER IN ORDER TO COMPLY WITH THE
 ONLINE  INSURANCE VERIFICATION SYSTEM REQUIRED BY SECTIONS THREE HUNDRED
 TWELVE AND THREE HUNDRED TWELVE-B OF THIS ARTICLE.
   5. THE COMMISSIONER SHALL PROMULGATE ANY RULES AND REGULATIONS  NECES-
 SARY  TO ACCOMMODATE INSURERS THAT WRITE A LIMITED NUMBER OF POLICIES IN
 THE STATE AND SUCH INSURERS  THAT  WOULD  BE  UNDULY  BURDENED  BY  THIS
 SECTION.
   §  4.  Subdivision  1 of section 312 of the vehicle and traffic law is
 amended by adding a new paragraph (c) to read as follows:
   (C) (I) WHEN THE DEPARTMENT HAS EVIDENCE THAT A MOTOR VEHICLE HAS BEEN
 OR IS CURRENTLY BEING OPERATED WITHOUT INSURANCE,  THE  OWNER'S  VEHICLE
 REGISTRATION MAY BE SUSPENDED OR REVOKED. THE CURRENT REGISTRATION SHALL
 NOT  BE  REINSTATED  AND  NEW  REGISTRATION  SHALL  NOT BE ISSUED UNLESS
 EVIDENCE OF INSURANCE HAS BEEN PROVIDED TO THE DEPARTMENT AND ANY APPLI-
 CABLE REINSTATEMENT FEES AS PRESCRIBED BY THE DEPARTMENT HAVE BEEN PAID.
 ANY APPLICABLE FEES ARE IN ADDITION TO ANY OTHER  FINES,  PENALTIES  AND
 FEES REQUIRED BY LAW.
   (II)  WHEN  THE  DEPARTMENT HAS EVIDENCE THAT A VEHICLE OWNER DOES NOT
 HAVE VALID VEHICLE INSURANCE AS REQUIRED BY THIS SECTION, THE DEPARTMENT
 MAY ALSO REQUEST THAT AN INSURER VERIFY THE EXISTENCE OF  AN  AUTOMOBILE
 LIABILITY  INSURANCE  POLICY  IN A FORM APPROVED BY THE COMMISSIONER, NO
 LATER THAN SEVEN DAYS FROM THE DATE THAT THE REQUEST IS MADE.
   § 5. This act shall take effect one year after it shall have become  a
 law. Effective immediately, the addition, amendment and/or repeal of any
 rule  or  regulation necessary for the implementation of this act on its
 effective date are authorized to be made on or before such date.

co-Sponsors

2021-A6335A - Details

See Senate Version of this Bill:: S4871
Current Committee:: Assembly Transportation
Law Section:: Vehicle and Traffic Law
Laws Affected:: Rpld §313 sub 4 ¶¶(a) - (i), sub 2 ¶¶(a) - (d), §317 ¶(d), add §§312-b & 312-c, amd §§312 & 312-a, V & T L
Versions Introduced in 2023-2024 Legislative Session:: A5120, S3405

2021-A6335A - Summary

2021-A6335A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6335--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 16, 2021
                                ___________
 
 Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
   tee on Transportation -- recommitted to the Committee  on  Transporta-
   tion  in  accordance  with  Assembly  Rule  3,  sec.  2  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN ACT to amend the vehicle and traffic law, in relation to establishing
   an online insurance verification system for proof of insurance; and to
   repeal certain provisions of such law relating to motor vehicle insur-
   ance and funds for a certain pilot database system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York state vehicle insurance verification act".
   § 2. Paragraphs (b), (c) and (d) of subdivision 2 and subdivision 4 of
 section 313 of the vehicle and traffic law are REPEALED.
   § 3. Paragraph (d) of subdivision 3 of section 317 of the vehicle  and
 traffic law is REPEALED.
   §  4.  The  vehicle and traffic law is amended by adding a new section
 312-b to read as follows:
   § 312-B. ONLINE INSURANCE VERIFICATION SYSTEM OF MOTOR VEHICLE  INSUR-
 ANCE.  1.  THE  COMMISSIONER  SHALL  ESTABLISH  A  SYSTEM FOR THE ONLINE
 VERIFICATION OF INSURANCE. INFORMATION AVAILABLE IN THE ONLINE INSURANCE
 VERIFICATION SYSTEM SHALL BE PROVIDED BY MOTOR VEHICLE INSURERS PURSUANT
 TO SECTION THREE HUNDRED TWELVE-C OF THIS ARTICLE.  NOTWITHSTANDING  ANY
 OTHER  PROVISION OF LAW OR REGULATION TO THE CONTRARY, THE ONLINE INSUR-
 ANCE VERIFICATION SYSTEM SHALL BE THE ONLY VERIFICATION SYSTEM  USED  TO
 VERIFY  EVIDENCE  OF  MANDATORY VEHICLE INSURANCE AS REQUIRED BY SECTION
 THREE HUNDRED TWELVE OF THIS ARTICLE.  THE  COMMISSIONER  SHALL  CONSULT
 WITH  REPRESENTATIVES  OF  THE  INSURANCE  INDUSTRY  AND PRIVATE SERVICE
 PROVIDERS IN DETERMINING THE OBJECTIVES, DETAILS AND  DEADLINES  RELATED
 TO THE ONLINE INSURANCE VERIFICATION SYSTEM.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09703-03-1

 A. 6335--A                          2
 
   2.  THE ONLINE INSURANCE VERIFICATION SYSTEM SHALL INCLUDE, AT A MINI-
 MUM, THE ABILITY TO:
   (A)  SEND  REQUESTS TO INSURERS FOR VERIFICATION OF EVIDENCE OF INSUR-
 ANCE VIA WEB SERVICES ESTABLISHED BY THE INSURERS, THROUGH THE INTERNET,
 OR A SIMILAR PROPRIETARY OR COMMON CARRIER ELECTRONIC SYSTEM, IN COMPLI-
 ANCE WITH THE SPECIFICATIONS AND STANDARDS  OF  THE  INSURANCE  INDUSTRY
 COMMITTEE ON MOTOR VEHICLE ADMINISTRATION;
   (B) INCLUDE APPROPRIATE PROVISIONS TO SECURE DATA AGAINST UNAUTHORIZED
 ACCESS  AND  THE  DEPARTMENT  SHALL  MAINTAIN A HISTORICAL RECORD OF THE
 SYSTEM DATA FOR SIX TO TWELVE MONTHS FROM THE DATE OF ALL  REQUESTS  AND
 RESPONSES;
   (C)  BE UTILIZED FOR VERIFICATION OF THE EVIDENCE OF MANDATORY LIABIL-
 ITY INSURANCE COVERAGE AS PRESCRIBED BY THE LAWS OF THE STATE AND  SHALL
 BE ACCESSIBLE TO AUTHORIZED PERSONNEL OF THE DEPARTMENT, THE COURTS, LAW
 ENFORCEMENT, AND ANY OTHER ENTITIES AUTHORIZED BY THE STATE AS PERMITTED
 BY ANY STATE OR FEDERAL PRIVACY LAWS, AND THE ONLINE INSURANCE VERIFICA-
 TION  SYSTEM  SHALL  BE  INTERFACED, WHEREVER APPROPRIATE, WITH EXISTING
 STATE SYSTEMS;
   (D) INCLUDE INFORMATION WHICH SHALL  ENABLE  THE  DEPARTMENT  TO  MAKE
 INQUIRIES  TO INSURERS FOR EVIDENCE OF INSURANCE THAT IS CONSISTENT WITH
 THE INSURANCE INDUSTRY COMMITTEE ON MOTOR VEHICLE ADMINISTRATION  RECOM-
 MENDATIONS, INCLUDING SPECIFICATIONS AND STANDARDS THAT UTILIZE MULTIPLE
 DATA  ELEMENTS  FOR  GREATER MATCHING ACCURACY FROM THE NATIONAL ASSOCI-
 ATION OF INSURANCE COMMISSIONERS, VEHICLE IDENTIFICATION NUMBERS, POLICY
 NUMBERS, OR AS DESCRIBED IN THE  SPECIFICATIONS  AND  STANDARDS  OF  THE
 INSURANCE INDUSTRY COMMITTEE ON MOTOR VEHICLE ADMINISTRATION; AND
   (E) RESPOND TO EACH REQUEST FOR INSURANCE INFORMATION WITHIN A REASON-
 ABLE  AMOUNT  OF  TIME WHICH SHALL BE DETERMINED BY THE COMMISSIONER AND
 THE ONLINE INSURANCE VERIFICATION SYSTEM SHALL BE CAPABLE OF  RESPONDING
 WITHIN THE TIME ESTABLISHED.
   3.  THE  COMMISSIONER, IN CONJUNCTION WITH THE SUPERINTENDENT OF STATE
 POLICE AND LOCAL LAW ENFORCEMENT OFFICIALS, SHALL FORMULATE A  MEANS  TO
 ALLOW  THE  ONLINE INSURANCE VERIFICATION SYSTEM TO BE EASILY ACCESSIBLE
 TO ON-DUTY LAW ENFORCEMENT PERSONNEL IN THE PERFORMANCE OF  THEIR  OFFI-
 CIAL  DUTIES FOR THE PURPOSE OF VERIFYING WHETHER AN OPERATOR OF A MOTOR
 VEHICLE MAINTAINS PROPER INSURANCE COVERAGE AND TO  INCREASE  COMPLIANCE
 WITH  THE  MOTOR  VEHICLE FINANCIAL SECURITY LAWS UNDER THIS ARTICLE AND
 ARTICLE EIGHT OF THIS TITLE.
   4. (A) THE COMMISSIONER SHALL DEVELOP A COMPUTER BAR CODE SYSTEM  THAT
 CAN BE IMPRINTED ON A VEHICLE REGISTRATION STICKER OR ON A STICKER TO BE
 AFFIXED  TO  THE  INSURED'S LICENSE PLATE EITHER SIMULTANEOUSLY OR AFTER
 THE ONLINE INSURANCE VERIFICATION SYSTEM HAS BEEN ESTABLISHED.
   (B) SUCH COMPUTER BAR CODE SHALL  ENABLE  AUTHORIZED  PERSONS  IN  THE
 PERFORMANCE  OF  THEIR OFFICIAL DUTIES TO ACCESS INFORMATION SUCH AS THE
 REGISTRANT'S NAME,  VEHICLE  IDENTIFICATION  NUMBER,  NAME  OF  INSURER,
 CURRENT  STATUS  OF  PREMIUM  PAYMENT,  DRIVER'S LICENSE NUMBER, VEHICLE
 REGISTRATION NUMBER AND OTHER INFORMATION THAT  THE  COMMISSIONER  DEEMS
 NECESSARY  TO IMPLEMENT THE PROVISIONS OF THIS SECTION. THE COMMISSIONER
 IN DEVELOPING SUCH BAR CODE SYSTEM SHALL ENABLE  AUTHORIZED  PERSONS  IN
 THE PERFORMANCE OF THEIR OFFICIAL DUTIES TO ACCESS ONLY SUCH INFORMATION
 THAT IS NECESSARY TO DETECT UNINSURED MOTOR VEHICLES OR ACCOMPLISH OTHER
 GOALS  CLEARLY  ESTABLISHED  AND AUTHORIZED BY LAW. SUCH SYSTEM SHALL BE
 DESIGNED TO PROTECT THE PERSONAL PRIVACY  INTERESTS  OF  MOTORISTS,  AND
 SHALL  AT  A MINIMUM INCLUDE SECURITY FEATURES USED IN PDF417 TECHNOLOGY
 OR GREATER.
 A. 6335--A                          3
 
   5. (A) NOTHING IN THIS SECTION SHALL PROHIBIT  THE  COMMISSIONER  FROM
 CONTRACTING  WITH  A  PRIVATE  SERVICE  PROVIDER  OR  PROVIDERS WHO HAVE
 SUCCESSFULLY IMPLEMENTED SIMILAR ONLINE INSURANCE  VERIFICATION  SYSTEMS
 IN OTHER STATES OR TO ASSIST IN ESTABLISHING AND MAINTAINING SUCH SYSTEM
 IN THIS STATE.
   (B) THE COMMISSIONER AND ANY PRIVATE SERVICE PROVIDER SHALL EACH SEPA-
 RATELY  MAINTAIN A CONTACT PERSON FOR INSURERS DURING THE ESTABLISHMENT,
 IMPLEMENTATION  AND  OPERATION  OF  THE  ONLINE  INSURANCE  VERIFICATION
 SYSTEM.
   6. THE COMMISSIONER SHALL PUBLISH FOR COMMENT AND THEN POST A DETAILED
 GUIDE  OF  THE  ONLINE INSURANCE VERIFICATION SYSTEM ON THE DEPARTMENT'S
 WEBSITE.
   7. WITHIN TWO YEARS AFTER THE ONLINE INSURANCE VERIFICATION SYSTEM  IS
 INSTALLED  AND  FULLY  OPERATIONAL, THE COMMISSIONER, AFTER CONSULTATION
 WITH INSURERS, SHALL PREPARE AND SUBMIT TO THE GOVERNOR,  THE  TEMPORARY
 PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEAD-
 ER  OF  THE  SENATE  AND  THE  MINORITY  LEADER OF THE ASSEMBLY A REPORT
 CONTAINING  THE  COSTS  OF  THE  ONLINE  INSURANCE  VERIFICATION  SYSTEM
 INCURRED  BY  THE DEPARTMENT, INSURERS AND THE PUBLIC AND THE EFFECTIVE-
 NESS OF THE SUCH SYSTEM IN REDUCING THE NUMBER OF UNINSURED MOTOR  VEHI-
 CLES.
   8.  THE  ONLINE  INSURANCE  VERIFICATION SYSTEM SHALL BE INSTALLED AND
 FULLY OPERATIONAL WITHIN EIGHTEEN MONTHS AFTER  THE  EFFECTIVE  DATE  OF
 THIS  SECTION  AND SHALL UNDERGO AN APPROPRIATE TESTING AND PILOT PERIOD
 OF NOT LESS THAN NINE MONTHS. UNTIL THE  SUCCESSFUL  COMPLETION  OF  THE
 TESTING  AND PILOT PERIOD, NO ENFORCEMENT ACTION SHALL BE TAKEN BASED ON
 THE ONLINE INSURANCE VERIFICATION SYSTEM.
  9. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  OR  REGULATION  TO  THE
 CONTRARY,  THE  PROVISIONS  TO  SECURE  DATA AGAINST UNAUTHORIZED ACCESS
 REQUIRED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO  OF  THIS  SECTION
 SHALL REQUIRE THE FOLLOWING:
   (A)  THE  INFORMATION  OBTAINED  BY  THE  DEPARTMENT  PURSUANT TO THIS
 SECTION SHALL BE DEEMED CONFIDENTIAL  AND  PROPRIETARY  INFORMATION  AND
 SHALL NOT BE DEEMED TO BE A PUBLIC RECORD SUBJECT TO DISCLOSURE PURSUANT
 TO THE PUBLIC OFFICERS LAW.
   (I)  SUCH  INFORMATION  SHALL NOT BE USED, SOLD, ACCESSED, UTILIZED IN
 ANY MANNER OR RELEASED BY THE DEPARTMENT TO ANY PERSON, CORPORATION,  OR
 STATE  AND  LOCAL AGENCY, UNLESS EXPLICITLY AUTHORIZED TO BE RELEASED TO
 PARTIES THAT ARE ENTITLED TO SUCH INFORMATION PURSUANT TO THIS SECTION.
   (II) SUCH INFORMATION MAY BE RELEASED TO ANOTHER STATE OR LOCAL AGENCY
 OR OTHER PERSONS IF THE DEPARTMENT, INSURER  AND  ATTORNEY  GENERAL  ALL
 CONSENT  TO  THE  RELEASE  OF A CERTAIN TYPE, CLASS OR CLASSIFICATION OF
 INFORMATION.
   (III) THE DEPARTMENT SHALL INSTITUTE APPROPRIATE  MEASURES  TO  ENSURE
 THAT  ONLY  AUTHORIZED  PERSONS ARE PERMITTED TO ACCESS SUCH INFORMATION
 FOR THE PURPOSES SPECIFIED BY THIS SECTION.
   (B) PERSONS WHO KNOWINGLY RELEASE OR  DISCLOSE  INFORMATION  FROM  THE
 ONLINE  INSURANCE  VERIFICATION  SYSTEM  FOR  A PURPOSE OTHER THAN THOSE
 DESCRIBED AS AUTHORIZED BY THIS SECTION OR TO A PERSON NOT  ENTITLED  TO
 RECEIVE  IT  SHALL  BE  GUILTY OF A MISDEMEANOR FOR EACH SUCH RELEASE OR
 DISCLOSURE.
   (C) THE DEPARTMENT SHALL  CONTINUE  TO  RELEASE  INFORMATION  THAT  IT
 CURRENTLY DISCLOSES TO THE PUBLIC SUCH AS MOTOR VEHICLE REGISTRATION AND
 TITLE  ABSTRACTS,  OTHER  REPORTS  CONCERNING A MOTOR VEHICLE OPERATORS'
 DRIVING HISTORY AND INSURANCE  CLAIMS  HISTORY,  AND  INFORMATION  TO  A
 A. 6335--A                          4
 
 PERSON  OR  PERSONS  SUFFERING  A  LOSS OR INJURY DUE TO A MOTOR VEHICLE
 ACCIDENT IN WHICH AN INSURED INDIVIDUAL WAS INVOLVED.
   §  5.  The  vehicle and traffic law is amended by adding a new section
 312-c to read as follows:
   § 312-C. INSURER RESPONSIBILITIES FOR THE ONLINE  INSURANCE  VERIFICA-
 TION  SYSTEM.  1. (A) INSURERS SHALL COORDINATE WITH THE COMMISSIONER IN
 ESTABLISHING AND MAINTAINING THE ONLINE  INSURANCE  VERIFICATION  SYSTEM
 ESTABLISHED  PURSUANT TO SECTION THREE HUNDRED TWELVE-B OF THIS ARTICLE,
 AND SHALL PROVIDE ACCESS TO MOTOR VEHICLE INSURANCE POLICY STATUS INFOR-
 MATION AS PROVIDED BY ANY  RULES  AND  REGULATIONS  PROMULGATED  BY  THE
 COMMISSIONER.
   (B)  EVERY  INSURER  THAT IS LICENSED TO ISSUE MOTOR VEHICLE INSURANCE
 POLICIES OR IS AUTHORIZED TO DO BUSINESS IN THE STATE SHALL COMPLY  WITH
 THIS  SECTION  AND  SECTION  THREE  HUNDRED TWELVE-B OF THIS ARTICLE FOR
 VERIFICATION OF EVIDENCE OF VEHICLE INSURANCE FOR EVERY VEHICLE  INSURED
 BY  THAT  INSURER  IN THE STATE AS REQUIRED BY THE RULES AND REGULATIONS
 PROMULGATED BY THE COMMISSIONER.
   (C) INSURERS SHALL MAINTAIN A HISTORICAL RECORD OF THE  ONLINE  INSUR-
 ANCE  VERIFICATION  SYSTEM  DATA FOR A MAXIMUM PERIOD OF SIX MONTHS FROM
 THE DATE ANY REQUEST AND RESPONSE IS MADE.
   (D) INSURERS SHALL RESPOND  TO  REQUESTS  FROM  THE  ONLINE  INSURANCE
 VERIFICATION  SYSTEM WITHIN THE TIME PERIOD PRESCRIBED BY THE SPECIFICA-
 TIONS AND STANDARDS SET BY THE INSURANCE  INDUSTRY  COMMITTEE  ON  MOTOR
 VEHICLE ADMINISTRATION.
   2.  (A)  INSURERS  SHALL  PROVIDE COMMERCIAL AUTOMOBILE CUSTOMERS WITH
 DOCUMENTATION THAT THE VEHICLE IS INSURED UNDER A COMMERCIAL AUTO  POLI-
 CY.    DOCUMENTATION  SHALL  BE AN INSURANCE IDENTIFICATION CARD CLEARLY
 MARKED IN THE TITLE WITH THE FOLLOWING, "COMMERCIAL AUTO INSURANCE IDEN-
 TIFICATION CARD".
   (B) FOR THE PURPOSES OF THIS SUBDIVISION, "COMMERCIAL  AUTO  COVERAGE"
 SHALL  BE  DEFINED AS ANY COVERAGE PROVIDED TO AN INSURED, REGARDLESS OF
 THE NUMBER OF VEHICLES OR  ENTITY  COVERED  UNDER  THE  COMMERCIAL  AUTO
 COVERAGE  AND  RATED FROM A COMMERCIAL MANUAL APPROVED BY THE DEPARTMENT
 OF FINANCIAL SERVICES.
   3. NOTHING IN THIS SECTION SHALL PROHIBIT AN INSURER  FROM  USING  THE
 SERVICES OF A THIRD-PARTY VENDOR OR PROVIDER IN ORDER TO COMPLY WITH THE
 ONLINE  INSURANCE VERIFICATION SYSTEM REQUIRED BY SECTIONS THREE HUNDRED
 TWELVE AND THREE HUNDRED TWELVE-B OF THIS ARTICLE.
   4. THE COMMISSIONER MAY PROMULGATE ANY RULES AND REGULATIONS NECESSARY
 TO ACCOMMODATE INSURERS THAT WRITE A LIMITED NUMBER OF POLICIES  IN  THE
 STATE AND SUCH INSURERS THAT WOULD BE UNDULY BURDENED BY THIS SECTION.
   §  6.  Subdivision  1 of section 312 of the vehicle and traffic law is
 amended by adding a new paragraph (c) to read as follows:
   (C) (I) WHEN THE DEPARTMENT HAS EVIDENCE THAT A MOTOR VEHICLE HAS BEEN
 OR IS CURRENTLY BEING OPERATED WITHOUT INSURANCE,  THE  OWNER'S  VEHICLE
 REGISTRATION MAY BE SUSPENDED OR REVOKED. THE CURRENT REGISTRATION SHALL
 NOT  BE  REINSTATED  AND  NEW  REGISTRATION  SHALL  NOT BE ISSUED UNLESS
 EVIDENCE OF INSURANCE HAS BEEN PROVIDED TO THE DEPARTMENT AND ANY APPLI-
 CABLE REINSTATEMENT FEES AS PRESCRIBED BY THE DEPARTMENT HAVE BEEN PAID.
 ANY APPLICABLE FEES ARE IN ADDITION TO ANY OTHER  FINES,  PENALTIES  AND
 FEES REQUIRED BY LAW.
   (II)  WHEN  THE  DEPARTMENT HAS EVIDENCE THAT A VEHICLE OWNER DOES NOT
 HAVE VALID VEHICLE INSURANCE AS REQUIRED BY THIS SECTION, THE DEPARTMENT
 MAY ALSO REQUEST THAT AN INSURER VERIFY THE EXISTENCE OF  AN  AUTOMOBILE
 LIABILITY  INSURANCE  POLICY  IN A FORM APPROVED BY THE COMMISSIONER, NO
 LATER THAN SEVEN DAYS FROM THE DATE THAT THE REQUEST IS MADE.
 A. 6335--A                          5
 
   § 7. Subdivision 1 of section 312-a of the vehicle and traffic law, as
 amended by chapter 781 of the laws  of  1983,  is  amended  to  read  as
 follows:
   1.  Upon issuance of an owner's policy of liability insurance or other
 financial security required by this  chapter,  an  insurer  shall  issue
 proof of insurance in accordance with the regulations promulgated by the
 commissioner  pursuant  to [paragraph (b) of subdivision two of section]
 SECTIONS three hundred [thirteen] TWELVE-B AND THREE HUNDRED TWELVE-C of
 this article.
   § 8. This act shall take effect one year after it shall have become  a
 law. Effective immediately, the addition, amendment and/or repeal of any
 rule  or  regulation necessary for the implementation of this act on its
 effective date are authorized to be made on or before such date.

co-Sponsors

2021-A6335B (ACTIVE) - Details

See Senate Version of this Bill:: S4871
Current Committee:: Assembly Transportation
Law Section:: Vehicle and Traffic Law
Laws Affected:: Rpld §313 sub 4 ¶¶(a) - (i), sub 2 ¶¶(a) - (d), §317 ¶(d), add §§312-b & 312-c, amd §§312 & 312-a, V & T L
Versions Introduced in 2023-2024 Legislative Session:: A5120, S3405

2021-A6335B (ACTIVE) - Summary

2021-A6335B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6335--B
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 16, 2021
                                ___________
 
 Introduced  by  M.  of A. GUNTHER, HUNTER, D. ROSENTHAL -- read once and
   referred to the Committee on  Transportation  --  recommitted  to  the
   Committee on Transportation in accordance with Assembly Rule 3, sec. 2
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee -- again reported from said  commit-
   tee  with  amendments, ordered reprinted as amended and recommitted to
   said committee
 
 AN ACT to amend the vehicle and traffic law, in relation to establishing
   an online insurance verification system for  proof  of  insurance;  to
   establish  an  online  insurance verification advisory council; and to
   repeal certain provisions of such law relating to motor vehicle insur-
   ance and funds for a certain pilot database system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York state fairness for drivers act".
   § 2. Paragraphs (a), (b), (c) and (d) of subdivision 2 and  paragraphs
 (a),  (b),  (c),  (d), (f), (g), (h) and (i) of subdivision 4 of section
 313 of the vehicle and traffic law are REPEALED.
   § 3. Paragraph (d) of subdivision 3 of section 317 of the vehicle  and
 traffic law is REPEALED.
   §  4.  The  vehicle and traffic law is amended by adding a new section
 312-b to read as follows:
   § 312-B. ONLINE INSURANCE VERIFICATION SYSTEM OF MOTOR VEHICLE  INSUR-
 ANCE.  1.  THE  COMMISSIONER  SHALL  ESTABLISH  A  SYSTEM FOR THE ONLINE
 VERIFICATION OF INSURANCE. INFORMATION AVAILABLE IN THE ONLINE INSURANCE
 VERIFICATION SYSTEM SHALL BE PROVIDED BY MOTOR VEHICLE INSURERS PURSUANT
 TO SECTION THREE HUNDRED TWELVE-C OF THIS ARTICLE.  NOTWITHSTANDING  ANY
 OTHER  PROVISION OF LAW OR REGULATION TO THE CONTRARY, THE ONLINE INSUR-
 ANCE VERIFICATION SYSTEM SHALL BE THE ONLY VERIFICATION SYSTEM  USED  TO
 VERIFY  EVIDENCE  OF  MANDATORY VEHICLE INSURANCE AS REQUIRED BY SECTION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09703-05-2

 A. 6335--B                          2
 
 THREE HUNDRED TWELVE OF THIS ARTICLE.  THE  COMMISSIONER  SHALL  CONSULT
 WITH  REPRESENTATIVES  OF  THE  INSURANCE  INDUSTRY  AND PRIVATE SERVICE
 PROVIDERS IN DETERMINING THE OBJECTIVES, DETAILS AND  DEADLINES  RELATED
 TO THE ONLINE INSURANCE VERIFICATION SYSTEM.
   2.  THE ONLINE INSURANCE VERIFICATION SYSTEM SHALL INCLUDE, AT A MINI-
 MUM, THE ABILITY TO:
   (A) SEND REQUESTS TO INSURERS FOR VERIFICATION OF EVIDENCE  OF  INSUR-
 ANCE VIA WEB SERVICES ESTABLISHED BY THE INSURERS, THROUGH THE INTERNET,
 OR A SIMILAR PROPRIETARY OR COMMON CARRIER ELECTRONIC SYSTEM, IN COMPLI-
 ANCE  WITH  THE  SPECIFICATIONS  AND STANDARDS OF THE INSURANCE INDUSTRY
 COMMITTEE ON MOTOR VEHICLE ADMINISTRATION;
   (B) INCLUDE APPROPRIATE PROVISIONS TO SECURE DATA AGAINST UNAUTHORIZED
 ACCESS AND THE DEPARTMENT SHALL MAINTAIN  A  HISTORICAL  RECORD  OF  THE
 SYSTEM  DATA  FOR SIX TO TWELVE MONTHS FROM THE DATE OF ALL REQUESTS AND
 RESPONSES;
   (C) BE UTILIZED FOR VERIFICATION OF THE EVIDENCE OF MANDATORY  LIABIL-
 ITY  INSURANCE COVERAGE AS PRESCRIBED BY THE LAWS OF THE STATE AND SHALL
 BE ACCESSIBLE TO AUTHORIZED PERSONNEL OF THE DEPARTMENT, THE COURTS, LAW
 ENFORCEMENT, AND ANY OTHER ENTITIES AUTHORIZED BY THE STATE AS PERMITTED
 BY ANY STATE OR FEDERAL PRIVACY LAWS, AND THE ONLINE INSURANCE VERIFICA-
 TION SYSTEM SHALL BE INTERFACED,  WHEREVER  APPROPRIATE,  WITH  EXISTING
 STATE SYSTEMS;
   (D)  INCLUDE  INFORMATION  WHICH  SHALL  ENABLE THE DEPARTMENT TO MAKE
 INQUIRIES TO INSURERS FOR EVIDENCE OF INSURANCE THAT IS CONSISTENT  WITH
 THE  INSURANCE INDUSTRY COMMITTEE ON MOTOR VEHICLE ADMINISTRATION RECOM-
 MENDATIONS, INCLUDING SPECIFICATIONS AND STANDARDS THAT UTILIZE MULTIPLE
 DATA ELEMENTS FOR GREATER MATCHING ACCURACY FROM  THE  NATIONAL  ASSOCI-
 ATION OF INSURANCE COMMISSIONERS, VEHICLE IDENTIFICATION NUMBERS, POLICY
 NUMBERS,  OR  AS  DESCRIBED  IN  THE SPECIFICATIONS AND STANDARDS OF THE
 INSURANCE INDUSTRY COMMITTEE ON MOTOR VEHICLE ADMINISTRATION; AND
   (E) RESPOND TO EACH REQUEST FOR INSURANCE INFORMATION WITHIN A REASON-
 ABLE AMOUNT OF TIME WHICH SHALL BE DETERMINED BY  THE  COMMISSIONER  AND
 THE  ONLINE INSURANCE VERIFICATION SYSTEM SHALL BE CAPABLE OF RESPONDING
 WITHIN THE TIME ESTABLISHED.
   3. THE COMMISSIONER, IN CONJUNCTION WITH THE SUPERINTENDENT  OF  STATE
 POLICE  AND  LOCAL LAW ENFORCEMENT OFFICIALS, SHALL FORMULATE A MEANS TO
 ALLOW THE ONLINE INSURANCE VERIFICATION SYSTEM TO BE  EASILY  ACCESSIBLE
 TO  ON-DUTY  LAW ENFORCEMENT PERSONNEL IN THE PERFORMANCE OF THEIR OFFI-
 CIAL DUTIES FOR THE PURPOSE OF VERIFYING WHETHER AN OPERATOR OF A  MOTOR
 VEHICLE  MAINTAINS  PROPER INSURANCE COVERAGE AND TO INCREASE COMPLIANCE
 WITH THE MOTOR VEHICLE FINANCIAL SECURITY LAWS UNDER  THIS  ARTICLE  AND
 ARTICLE EIGHT OF THIS TITLE.
   4.  (A) THE COMMISSIONER SHALL DEVELOP A COMPUTER BAR CODE SYSTEM THAT
 CAN BE IMPRINTED ON A VEHICLE REGISTRATION STICKER OR ON A STICKER TO BE
 AFFIXED TO THE INSURED'S LICENSE PLATE EITHER  SIMULTANEOUSLY  OR  AFTER
 THE ONLINE INSURANCE VERIFICATION SYSTEM HAS BEEN ESTABLISHED.
   (B)  SUCH  COMPUTER  BAR  CODE  SHALL ENABLE AUTHORIZED PERSONS IN THE
 PERFORMANCE OF THEIR OFFICIAL DUTIES TO ACCESS INFORMATION SUCH  AS  THE
 REGISTRANT'S  NAME,  VEHICLE  IDENTIFICATION  NUMBER,  NAME  OF INSURER,
 CURRENT STATUS OF PREMIUM  PAYMENT,  DRIVER'S  LICENSE  NUMBER,  VEHICLE
 REGISTRATION  NUMBER  AND  OTHER INFORMATION THAT THE COMMISSIONER DEEMS
 NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. THE  COMMISSIONER
 IN  DEVELOPING  SUCH  BAR CODE SYSTEM SHALL ENABLE AUTHORIZED PERSONS IN
 THE PERFORMANCE OF THEIR OFFICIAL DUTIES TO ACCESS ONLY SUCH INFORMATION
 THAT IS NECESSARY TO DETECT UNINSURED MOTOR VEHICLES OR ACCOMPLISH OTHER
 GOALS CLEARLY ESTABLISHED AND AUTHORIZED BY LAW. SUCH  SYSTEM  SHALL  BE
 A. 6335--B                          3
 
 DESIGNED  TO  PROTECT  THE  PERSONAL PRIVACY INTERESTS OF MOTORISTS, AND
 SHALL AT A MINIMUM INCLUDE SECURITY FEATURES USED IN  PDF417  TECHNOLOGY
 OR GREATER.
   5.  (A)  NOTHING  IN THIS SECTION SHALL PROHIBIT THE COMMISSIONER FROM
 CONTRACTING WITH A  PRIVATE  SERVICE  PROVIDER  OR  PROVIDERS  WHO  HAVE
 SUCCESSFULLY  IMPLEMENTED  SIMILAR ONLINE INSURANCE VERIFICATION SYSTEMS
 IN OTHER STATES OR TO ASSIST IN ESTABLISHING AND MAINTAINING SUCH SYSTEM
 IN THIS STATE.
   (B) THE COMMISSIONER AND ANY PRIVATE SERVICE PROVIDER SHALL EACH SEPA-
 RATELY MAINTAIN A CONTACT PERSON FOR INSURERS DURING THE  ESTABLISHMENT,
 IMPLEMENTATION  AND  OPERATION  OF  THE  ONLINE  INSURANCE  VERIFICATION
 SYSTEM.
   6. THE COMMISSIONER SHALL PUBLISH FOR COMMENT AND THEN POST A DETAILED
 GUIDE OF THE ONLINE INSURANCE VERIFICATION SYSTEM  ON  THE  DEPARTMENT'S
 WEBSITE.
   7.  WITHIN TWO YEARS AFTER THE ONLINE INSURANCE VERIFICATION SYSTEM IS
 INSTALLED AND FULLY OPERATIONAL, THE  COMMISSIONER,  AFTER  CONSULTATION
 WITH  INSURERS,  SHALL PREPARE AND SUBMIT TO THE GOVERNOR, THE TEMPORARY
 PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEAD-
 ER OF THE SENATE AND THE  MINORITY  LEADER  OF  THE  ASSEMBLY  A  REPORT
 CONTAINING  THE  COSTS  OF  THE  ONLINE  INSURANCE  VERIFICATION  SYSTEM
 INCURRED BY THE DEPARTMENT, INSURERS AND THE PUBLIC AND  THE  EFFECTIVE-
 NESS  OF THE SUCH SYSTEM IN REDUCING THE NUMBER OF UNINSURED MOTOR VEHI-
 CLES.
   8. THE ONLINE INSURANCE VERIFICATION SYSTEM  SHALL  BE  INSTALLED  AND
 FULLY  OPERATIONAL  WITHIN  EIGHTEEN  MONTHS AFTER THE EFFECTIVE DATE OF
 THIS SECTION AND SHALL UNDERGO AN APPROPRIATE TESTING AND  PILOT  PERIOD
 OF  NOT  LESS  THAN  NINE MONTHS. UNTIL THE SUCCESSFUL COMPLETION OF THE
 TESTING AND PILOT PERIOD, NO ENFORCEMENT ACTION SHALL BE TAKEN BASED  ON
 THE ONLINE INSURANCE VERIFICATION SYSTEM.
  9.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW OR REGULATION TO THE
 CONTRARY, THE PROVISIONS TO  SECURE  DATA  AGAINST  UNAUTHORIZED  ACCESS
 REQUIRED  PURSUANT  TO  PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION
 SHALL REQUIRE THE FOLLOWING:
   (A) THE INFORMATION  OBTAINED  BY  THE  DEPARTMENT  PURSUANT  TO  THIS
 SECTION  SHALL  BE  DEEMED  CONFIDENTIAL AND PROPRIETARY INFORMATION AND
 SHALL NOT BE DEEMED TO BE A PUBLIC RECORD SUBJECT TO DISCLOSURE PURSUANT
 TO THE PUBLIC OFFICERS LAW.
   (I) SUCH INFORMATION SHALL NOT BE USED, SOLD,  ACCESSED,  UTILIZED  IN
 ANY  MANNER OR RELEASED BY THE DEPARTMENT TO ANY PERSON, CORPORATION, OR
 STATE AND LOCAL AGENCY, UNLESS EXPLICITLY AUTHORIZED TO BE  RELEASED  TO
 PARTIES THAT ARE ENTITLED TO SUCH INFORMATION PURSUANT TO THIS SECTION.
   (II) SUCH INFORMATION MAY BE RELEASED TO ANOTHER STATE OR LOCAL AGENCY
 OR  OTHER  PERSONS  IF  THE DEPARTMENT, INSURER AND ATTORNEY GENERAL ALL
 CONSENT TO THE RELEASE OF A CERTAIN TYPE,  CLASS  OR  CLASSIFICATION  OF
 INFORMATION.
   (III)  THE  DEPARTMENT  SHALL INSTITUTE APPROPRIATE MEASURES TO ENSURE
 THAT ONLY AUTHORIZED PERSONS ARE PERMITTED TO  ACCESS  SUCH  INFORMATION
 FOR THE PURPOSES SPECIFIED BY THIS SECTION.
   (B)  PERSONS  WHO  KNOWINGLY  RELEASE OR DISCLOSE INFORMATION FROM THE
 ONLINE INSURANCE VERIFICATION SYSTEM FOR  A  PURPOSE  OTHER  THAN  THOSE
 DESCRIBED  AS  AUTHORIZED BY THIS SECTION OR TO A PERSON NOT ENTITLED TO
 RECEIVE IT SHALL BE GUILTY OF A MISDEMEANOR FOR  EACH  SUCH  RELEASE  OR
 DISCLOSURE.
   (C)  THE  DEPARTMENT  SHALL  CONTINUE  TO  RELEASE INFORMATION THAT IT
 CURRENTLY DISCLOSES TO THE PUBLIC SUCH AS MOTOR VEHICLE REGISTRATION AND
 A. 6335--B                          4
 
 TITLE ABSTRACTS, OTHER REPORTS CONCERNING  A  MOTOR  VEHICLE  OPERATORS'
 DRIVING  HISTORY  AND  INSURANCE  CLAIMS  HISTORY,  AND INFORMATION TO A
 PERSON OR PERSONS SUFFERING A LOSS OR INJURY  DUE  TO  A  MOTOR  VEHICLE
 ACCIDENT IN WHICH AN INSURED INDIVIDUAL WAS INVOLVED.
   §  5.  The  vehicle and traffic law is amended by adding a new section
 312-c to read as follows:
   § 312-C. INSURER RESPONSIBILITIES FOR THE ONLINE  INSURANCE  VERIFICA-
 TION  SYSTEM.  1. (A) INSURERS SHALL COORDINATE WITH THE COMMISSIONER IN
 ESTABLISHING AND MAINTAINING THE ONLINE  INSURANCE  VERIFICATION  SYSTEM
 ESTABLISHED  PURSUANT TO SECTION THREE HUNDRED TWELVE-B OF THIS ARTICLE,
 AND SHALL PROVIDE ACCESS TO MOTOR VEHICLE INSURANCE POLICY STATUS INFOR-
 MATION AS PROVIDED BY ANY  RULES  AND  REGULATIONS  PROMULGATED  BY  THE
 COMMISSIONER.
   (B)  EVERY  INSURER  THAT IS LICENSED TO ISSUE MOTOR VEHICLE INSURANCE
 POLICIES OR IS AUTHORIZED TO DO BUSINESS IN THE STATE SHALL COMPLY  WITH
 THIS  SECTION  AND  SECTION  THREE  HUNDRED TWELVE-B OF THIS ARTICLE FOR
 VERIFICATION OF EVIDENCE OF VEHICLE INSURANCE FOR EVERY VEHICLE  INSURED
 BY  THAT  INSURER  IN THE STATE AS REQUIRED BY THE RULES AND REGULATIONS
 PROMULGATED BY THE COMMISSIONER.
   (C) INSURERS SHALL MAINTAIN A HISTORICAL RECORD OF THE  ONLINE  INSUR-
 ANCE  VERIFICATION  SYSTEM  DATA FOR A MAXIMUM PERIOD OF SIX MONTHS FROM
 THE DATE ANY REQUEST AND RESPONSE IS MADE.
   (D) INSURERS SHALL RESPOND  TO  REQUESTS  FROM  THE  ONLINE  INSURANCE
 VERIFICATION  SYSTEM WITHIN THE TIME PERIOD PRESCRIBED BY THE SPECIFICA-
 TIONS AND STANDARDS SET BY THE INSURANCE  INDUSTRY  COMMITTEE  ON  MOTOR
 VEHICLE ADMINISTRATION.
   2.  (A)  INSURERS  SHALL  PROVIDE COMMERCIAL AUTOMOBILE CUSTOMERS WITH
 DOCUMENTATION THAT THE VEHICLE IS INSURED UNDER A COMMERCIAL AUTO  POLI-
 CY.    DOCUMENTATION  SHALL  BE AN INSURANCE IDENTIFICATION CARD CLEARLY
 MARKED IN THE TITLE WITH THE FOLLOWING, "COMMERCIAL AUTO INSURANCE IDEN-
 TIFICATION CARD".
   (B) FOR THE PURPOSES OF THIS SUBDIVISION, "COMMERCIAL  AUTO  COVERAGE"
 SHALL  BE  DEFINED AS ANY COVERAGE PROVIDED TO AN INSURED, REGARDLESS OF
 THE NUMBER OF VEHICLES OR  ENTITY  COVERED  UNDER  THE  COMMERCIAL  AUTO
 COVERAGE  AND  RATED FROM A COMMERCIAL MANUAL APPROVED BY THE DEPARTMENT
 OF FINANCIAL SERVICES.
   3. NOTHING IN THIS SECTION SHALL PROHIBIT AN INSURER  FROM  USING  THE
 SERVICES OF A THIRD-PARTY VENDOR OR PROVIDER IN ORDER TO COMPLY WITH THE
 ONLINE  INSURANCE VERIFICATION SYSTEM REQUIRED BY SECTIONS THREE HUNDRED
 TWELVE AND THREE HUNDRED TWELVE-B OF THIS ARTICLE.
   4. THE COMMISSIONER MAY PROMULGATE ANY RULES AND REGULATIONS NECESSARY
 TO ACCOMMODATE INSURERS THAT WRITE A LIMITED NUMBER OF POLICIES  IN  THE
 STATE AND SUCH INSURERS THAT WOULD BE UNDULY BURDENED BY THIS SECTION.
   §  6.  a. There is hereby established an online insurance verification
 advisory council. It shall consist of 14 voting members to be  appointed
 as  follows: the commissioner of the department of motor vehicles or his
 or her duly designated representative, the superintendent  of  financial
 services  or  his or her duly designated representative, the superinten-
 dent of the New York State Police or his or her duly  designated  repre-
 sentative;  and  eleven at-large members, of which, two members shall be
 appointed by the governor, two members shall be appointed by the  tempo-
 rary    president  of  the senate, two members shall be appointed by the
 speaker of the assembly, one member shall be appointed by  the  minority
 leader  of  the  senate,  one  member shall be appointed by the minority
 leader of the assembly, as well as  three  insurance  company  represen-
 tatives,  one  appointed  by  the  New  York  Insurance Association, one
 A. 6335--B                          5
 
 appointed by the American Property and Casualty  Insurance  Association,
 and one appointed by the National Association of Mutual Insurance Compa-
 nies.  The  commissioner  of the department of motor vehicles, or his or
 her  duly  designated  representative, shall serve as chairperson of the
 advisory council. The eleven appointed members shall serve at the pleas-
 ure of the appointing  official  or  organization.  Vacancies  shall  be
 filled in the manner provided for original appointments.
   b.  The  members of the advisory council shall receive no compensation
 for their services.
   c.  Notwithstanding any inconsistent provision of any general, special
 or local law, ordinance, resolution or charter, no  officer,  member  or
 employee  of the state or of any public corporation shall forfeit his or
 her office or employment by reason of his or her acceptance of  appoint-
 ment  as  a  member  of  the advisory council, nor shall service as such
 council member be deemed incompatible or in conflict with such office or
 employment.
   d. The advisory council is charged with the following duties:
   (1) Facilitate the implementation of the online insurance verification
 system;
   (2) Develop a guide for insurers providing data and other  information
 necessary for compliance along with other necessary regulations;
   (3) Coordinate and conduct a testing phase;
   (4) Identify necessary changes during the testing phase; and
   (5)  Issue  recommendations  based  on  periodic reviews of the online
 insurance verification system.
   e. The advisory council may request and shall receive from any  subdi-
 vision,  department, board, commission, office, agency, or other instru-
 mentality of the state or of  any  political  subdivision  thereof  such
 facilities,  assistance  and data as it deems necessary or desirable for
 the proper execution of its powers and  duties  and  to  effectuate  the
 purposes set forth in this act.
   §  7.  Subdivision  1 of section 312 of the vehicle and traffic law is
 amended by adding a new paragraph (c) to read as follows:
   (C) WHEN THE DEPARTMENT HAS EVIDENCE THAT A MOTOR VEHICLE HAS BEEN  OR
 IS  CURRENTLY  BEING  OPERATED  WITHOUT  INSURANCE,  THE OWNER'S VEHICLE
 REGISTRATION MAY BE SUSPENDED OR REVOKED. THE CURRENT REGISTRATION SHALL
 NOT BE REINSTATED AND  NEW  REGISTRATION  SHALL  NOT  BE  ISSUED  UNLESS
 EVIDENCE OF INSURANCE HAS BEEN PROVIDED TO THE DEPARTMENT AND ANY APPLI-
 CABLE REINSTATEMENT FEES AS PRESCRIBED BY THE DEPARTMENT HAVE BEEN PAID.
 ANY  APPLICABLE  FEES  ARE IN ADDITION TO ANY OTHER FINES, PENALTIES AND
 FEES REQUIRED BY LAW.
   § 8. Subdivision 1 of section 312-a of the vehicle and traffic law, as
 amended by chapter 781 of the laws  of  1983,  is  amended  to  read  as
 follows:
   1.  Upon issuance of an owner's policy of liability insurance or other
 financial security required by this  chapter,  an  insurer  shall  issue
 proof of insurance in accordance with the regulations promulgated by the
 commissioner  pursuant  to [paragraph (b) of subdivision two of section]
 SECTIONS three hundred [thirteen] TWELVE-B AND THREE HUNDRED TWELVE-C of
 this article.
   § 9  This  act  shall  take  effect  immediately;  provided,  however,
 sections  two  and  three  of this act shall take effect when the online
 insurance verification system is installed and fully operational  pursu-
 ant to subdivision 8 of section 312-b of the vehicle and traffic law, as
 added  by section four of this act; and provided further, sections four,
 five, seven and eight of this act shall take effect one  year  after  it
 A. 6335--B                          6
 
 shall  have become a law. Effective immediately, the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on its effective date are authorized to be made on or before
 such date.

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Assembly Bill A6335B

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

2021-A6335 - Details

2021-A6335 - Summary

2021-A6335 - Bill Text download pdf

co-Sponsors

2021-A6335A - Details

2021-A6335A - Summary

2021-A6335A - Bill Text download pdf

co-Sponsors

2021-A6335B (ACTIVE) - Details

2021-A6335B (ACTIVE) - Summary

2021-A6335B (ACTIVE) - Bill Text download pdf

Comments

Assembly Bill A6335B

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Sponsored By

GUNTHER

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

2021-A6335 - Details

2021-A6335 - Summary

2021-A6335 - Bill Text download pdf

co-Sponsors

Pamela J. Hunter

Daniel Rosenthal

2021-A6335A - Details

2021-A6335A - Summary

2021-A6335A - Bill Text download pdf

co-Sponsors

Pamela J. Hunter

Daniel Rosenthal

John T. McDonald III

2021-A6335B (ACTIVE) - Details

2021-A6335B (ACTIVE) - Summary

2021-A6335B (ACTIVE) - Bill Text download pdf

Comments