NY State Senate Bill 2023-S3405

Current Bill Status - In Senate Committee Transportation 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
Jan 03, 2024	referred to transportation
Jan 31, 2023	referred to transportation

2023-S3405 (ACTIVE) - Details

See Assembly Version of this Bill:: A5120
Current Committee:: Senate Transportation
Law Section:: Vehicle and Traffic Law
Laws Affected:: Rpld §313 sub 4 ¶¶(a) - (d) & ¶¶(f) - (i), sub 2 ¶¶(a) - (d), §317 sub 3 ¶(d), add §§312-b & 312-c, amd §§312 & 312-a, V & T L
Versions Introduced in 2021-2022 Legislative Session:: S4871, A6335

2023-S3405 (ACTIVE) - 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

2023-S3405 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3405

SPONSOR: BRESLIN
 
TITLE OF BILL:

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

 
PURPOSE:

To replace New York State's motor vehicle liability insurance reporting
system.

 
SUMMARY OF PROVISIONS:

Section 1: Entitles the Act as the "New York State fairness for drivers
act".

Section 2: Repeals Paragraphs (a), (b), (c) and (d) of subdivision 2 and

Paragraphs (a), (b), (c), (d), (f), (g), (h), (i) of subdivision 4 of
section 313 of the vehicle and traffic law;

Section 3: Paragraph (d) of subdivision 3 of section 317 of the vehicle
and traffic law;

Section 4: Establishes on online verification (OLV) of insurance system
for automobile liability insurance reporting in New York.  Includes,
Report on Effectiveness, requiring that no more than two years after
this act become law, the Department of Motor Vehicles shall report to
the legislature and the governor on the effectiveness of the act;

Section 5: Establishes insurer responsibilities regarding the OLV
system;

Section 6: Establishes an advisory council, chaired by the commissioner
of the department of motor vehicles or his or her designee, and inclu-
sive of insurance industry representatives, to oversee the implementa-
tion of the OLV system.

Section 7: Establishes Department of Motor Vehicle corrective authority
regarding uninsured motorists;

Section 8: Establishes insurer proof of insurance shall be consistent
with Department of Motor Vehicle regulations;

Section 9: Effective date. Section 6 of this act, creating an advisory
council shall take effect immediately, however, sections 2 and 3 of this
act repealing existing provisions of law shall take effect when the OLV
system under paragraph 8 of section 4 has become operational, the
remainder of this act shall take effect one year after it shall have
become a law.

The verification system shall be installed and fully operational eigh-
teen months after this law shall have become law, following an appropri-
ate testing/pilot period of not less than nine (9) months.

 
JUSTIFICATION:

New York's current system for auto insurance verification relies on old
technology and manual processing for both the DMV and insurance carri-
ers. This results in an increased likelihood of a driver erroneously
being identified as uninsured and can result in being unfairly accused,
ticketed and possible arrested for failure to prove insurance coverage.
Motorists who are charged with driving without insurance can face a
serious misdemeanor charge, have their car impounded, and lose their
license which may result in thousands of dollars in legal fees and court
appearances.

According to an NYU study, African American drivers were more likely to
be stopped by law enforcement. (See,https://www.nyu.edu/
about/newspublications/ news/2020/mayiblackdrivers-m ore-likely-to-be-
stopped-bypolice.html) Other studies have found that African American
drivers were twice as likely to be cited for failing to produce a driv-
ers' license or proof of vehicle insurance. (See,
(http://www.cjcj.org/uploads/cjcj/ documents/Race-based decisions.pdf)
And according to a US Justice Department report, young drivers were more
likely to be pulled over than older drivers. (See,
(https://bjs.ojp.gov/content/pub/ ascii/cdsp02.txt) Based on these
studies, certain under-represented segments of the population may be
adversely impacted more frequently by the limitations of the current
insurance verification system

The "Fairness for Drivers Act" would create an Online Verification
system (OLV). This system allows for real-time verification of automo-
bile insurance and reduces the likelihood of drivers being falsely
accused of driving without insurance coverage. Unlike the current system
the OLV system verifies directly against the insurance companies records
within seconds. In addition, this system can be used by law enforcement
during roadside stops and accident investigations, and the within the
court system. 18 states, including California and Illinois have adopted
a version of an OLV system.

The "Fairness for Drivers Act" would benefit ALL New York motorists.  It
would also address an important social equity need - people of color and
young drivers who are more likely to have insurance verified by law
enforcement at a roadside stop. By using current insurance company data,
the OLV system protects insured individuals from being misidentified as
uninsured, reducing the personal and economic impacts. Importantly, an
OLV system also protects drivers' privacy by limiting access to legally
authorized agencies and using the most advanced methods of data
encryption.

In addition to the foregoing social justification for this legislation,
there are technical reasons for its enactment as well.  49 states,
including New York, require that motorists carry liability insurance as
a way of protecting the public from damage and injuries caused by auto-
mobile accidents (See, NY VTL § 310(2)). Furthermore, New York is one of
38 states that subsequently mandate automobile liability insurance
reporting (ALIR) for personal automobile insurance, and one of 18 states
that also mandates ALIR for commercial automobile insurance from insur-
ance companies to a state's Department of Motor Vehicles (See, NY VTL §
313(b), (c); 15 NYCRR, Part 34). ALIR requirements help to ensure that
every motorist and vehicle on the road is properly insured, thus reduc-
ing the risk posed by uninsured motorists.
The Insurance Information and Enforcement System (TIES) is the ALIR
system used by the New York Department of Motor Vehicles (DMV) to moni-
tor the insurance status of the nearly 5 million registered automobiles
in New York State. The current iteration of IIES was created pursuant to
L. 1997, chap. 678, as amended by L. 1998, chap.  509. At the time of
its enactment IIES was known as the "high tech sticker" law as it tran-
sitioned NY from a paper-based insurance verification system, to an
electronic-based verification system. It is a daily transaction central-
ized database maintained by the DMV, requiring insurance carriers to
send and retrieve batch mode transactions to and from the IIES database.
IIES is based on standards for electronic data interchange (EDI) devel-
oped by the Accredited Standards Committee (ASC) of the American
National Standards Institute (ANSI) known as ASC X12. The ASC X12 stand-
ard was first developed in 1979. While ASC X12 is still widely used in
numerous industries, more recently the maintenance of large, centralized
databases has come under scrutiny for being costly, requiring large data
storage, susceptibility to internet bottlenecks, and the need for
constant maintenance. Concerns of this type have arisen in New York
where the DMV estimates that the insurance status of approximately 85%
of registered vehicles in New York are accurately matched to a vehicle
at any given moment in time. This leaves 15% of motorists at risk that
law enforcement may inadvertently claim that a motorist is uninsured
when in fact they are. Accordingly, alternative methods of insurance
verification have developed since the IIES program was established in
the late 20,-h century. One such method is known as online verification
(OLV) of insurance. OLV provides for real-time verification of coverage
on an event-based basis (i.e, at time of registration o r during a traf-
fic stop), as well as ongoing monitoring of coverage to ensure mainte-
nance of coverage. OLV operates by collecting coverage information from
insurers on a weekly basis, which allows for ongoing monitoring of
coverage, while also providing the DMV the ability of confirm coverage
in real time on an event-based basis through web services. This dual
layer of verification provides for state-of-the-art insurance verifica-
tion that minimizes false positives and streamlines the process for auto
insurers. The OLV model has been described as similar to "a credit card
authorization process where the numbers on the card are used as a key to
determine if a purchase can be made.  If the key information is not
properly captured and entered into the verification request, the insur-
ers' responses will produce incorrect results. As such, obtaining infor-
mation directly from a customer's ID card or policy declaration page
will yield the best results." (See generally,
https://www.iicmva.com/IICMVA%200LV%20TIPSv1.0.pdf, and,
https://www.iicmva.com/ Making%20V2.l.pdf). The Insurance Industry
Committee. on Motor Vehicle Administration (IICMVA) has developed legis-
lation upon which this bill is based to assist states adopt and leverage
such cutting-edge methods of insurance verification.  Currently, 18
states, with others in development, have adopted the IICMVA OLV model
law. One such state is Illinois, which similar to New York has approxi-
mately 4.5 million vehicles registered (See generally,
https://www.ivansinsurance.com/globalassets/ alldocuments/
resources/reports/ivans-alir-state-chart.pdf).

In New York, the automobile insurance verification reporting system,
LIES, is funded by an assessment that the DMV charges insurance carriers
for maintaining the TIES system (See, New York Vehicle & Traffic Law
317). In New York's FY2020 budget maintenance of New York's compulsory
insurance program cost $9,807,000 million (See, S7500C/A9500C, State
Operations Budget Bill, pg. 545). Consequently, this legislation would
not have any fiscal impact on New York State, and may lead to antic-
ipated savings as the cost of maintaining an OLV based ALIR system is
commonly regarded as more efficient that maintaining a centralized data-
base system such as IIES.

 
LEGISLATIVE HISTORY:

2021-22: S.4871B

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
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 pursuant 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 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.

2023-S3405 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3405
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Transportation
 
 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
 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,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08325-02-3
 S. 3405                             2
 
 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.
   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.
 S. 3405                             3
 
   (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
 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
 S. 3405                             4
 
 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
 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.
 S. 3405                             5
 
   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
 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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Senate Bill S3405

Sponsored By

Current Bill Status - In Senate Committee Transportation Committee

2023-S3405 (ACTIVE) - Details

2023-S3405 (ACTIVE) - Summary

2023-S3405 (ACTIVE) - Sponsor Memo

2023-S3405 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3405

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Sponsored By

Neil D. Breslin

Current Bill Status - In Senate Committee Transportation Committee

2023-S3405 (ACTIVE) - Details

2023-S3405 (ACTIVE) - Summary

2023-S3405 (ACTIVE) - Sponsor Memo

2023-S3405 (ACTIVE) - Bill Text download pdf

Comments