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A06335 Summary:

BILL NOA06335B
 
SAME ASSAME AS S04871-B
 
SPONSORGunther
 
COSPNSRHunter, Rosenthal D, McDonald
 
MLTSPNSR
 
Rpld 313 sub 4 (a) - (i), sub 2 (a) - (d), 317 (d), add 312-b & 312-c, amd 312 & 312-a, V & T L
 
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; requires certain information to be confidential and propriety information which is not subject to disclosure.
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A06335 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6335--B
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                     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:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "New York state fairness for drivers act".
     3    § 2. Paragraphs (a), (b), (c) and (d) of subdivision 2 and  paragraphs
     4  (a),  (b),  (c),  (d), (f), (g), (h) and (i) of subdivision 4 of section
     5  313 of the vehicle and traffic law are REPEALED.
     6    § 3. Paragraph (d) of subdivision 3 of section 317 of the vehicle  and
     7  traffic law is REPEALED.
     8    §  4.  The  vehicle and traffic law is amended by adding a new section
     9  312-b to read as follows:
    10    § 312-b. Online insurance verification system of motor vehicle  insur-
    11  ance.  1.  The  commissioner  shall  establish  a  system for the online
    12  verification of insurance. Information available in the online insurance
    13  verification system shall be provided by motor vehicle insurers pursuant
    14  to section three hundred twelve-c of this article.  Notwithstanding  any
    15  other  provision of law or regulation to the contrary, the online insur-
    16  ance verification system shall be the only verification system  used  to
    17  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
 
     1  three hundred twelve of this article.  The  commissioner  shall  consult
     2  with  representatives  of  the  insurance  industry  and private service
     3  providers in determining the objectives, details and  deadlines  related
     4  to the online insurance verification system.
     5    2.  The online insurance verification system shall include, at a mini-
     6  mum, the ability to:
     7    (a) send requests to insurers for verification of evidence  of  insur-
     8  ance via web services established by the insurers, through the internet,
     9  or a similar proprietary or common carrier electronic system, in compli-
    10  ance  with  the  specifications  and standards of the insurance industry
    11  committee on motor vehicle administration;
    12    (b) include appropriate provisions to secure data against unauthorized
    13  access and the department shall maintain  a  historical  record  of  the
    14  system  data  for six to twelve months from the date of all requests and
    15  responses;
    16    (c) be utilized for verification of the evidence of mandatory  liabil-
    17  ity  insurance coverage as prescribed by the laws of the state and shall
    18  be accessible to authorized personnel of the department, the courts, law
    19  enforcement, and any other entities authorized by the state as permitted
    20  by any state or federal privacy laws, and the online insurance verifica-
    21  tion system shall be interfaced,  wherever  appropriate,  with  existing
    22  state systems;
    23    (d)  include  information  which  shall  enable the department to make
    24  inquiries to insurers for evidence of insurance that is consistent  with
    25  the  insurance industry committee on motor vehicle administration recom-
    26  mendations, including specifications and standards that utilize multiple
    27  data elements for greater matching accuracy from  the  national  associ-
    28  ation of insurance commissioners, vehicle identification numbers, policy
    29  numbers,  or  as  described  in  the specifications and standards of the
    30  insurance industry committee on motor vehicle administration; and
    31    (e) respond to each request for insurance information within a reason-
    32  able amount of time which shall be determined by  the  commissioner  and
    33  the  online insurance verification system shall be capable of responding
    34  within the time established.
    35    3. The commissioner, in conjunction with the superintendent  of  state
    36  police  and  local law enforcement officials, shall formulate a means to
    37  allow the online insurance verification system to be  easily  accessible
    38  to  on-duty  law enforcement personnel in the performance of their offi-
    39  cial duties for the purpose of verifying whether an operator of a  motor
    40  vehicle  maintains  proper insurance coverage and to increase compliance
    41  with the motor vehicle financial security laws under  this  article  and
    42  article eight of this title.
    43    4.  (a) The commissioner shall develop a computer bar code system that
    44  can be imprinted on a vehicle registration sticker or on a sticker to be
    45  affixed to the insured's license plate either  simultaneously  or  after
    46  the online insurance verification system has been established.
    47    (b)  Such  computer  bar  code  shall enable authorized persons in the
    48  performance of their official duties to access information such  as  the
    49  registrant's  name,  vehicle  identification  number,  name  of insurer,
    50  current status of premium  payment,  driver's  license  number,  vehicle
    51  registration  number  and  other information that the commissioner deems
    52  necessary to implement the provisions of this section. The  commissioner
    53  in  developing  such  bar code system shall enable authorized persons in
    54  the performance of their official duties to access only such information
    55  that is necessary to detect uninsured motor vehicles or accomplish other
    56  goals clearly established and authorized by law. Such  system  shall  be

        A. 6335--B                          3
 
     1  designed  to  protect  the  personal privacy interests of motorists, and
     2  shall at a minimum include security features used in  PDF417  technology
     3  or greater.
     4    5.  (a)  Nothing  in this section shall prohibit the commissioner from
     5  contracting with a  private  service  provider  or  providers  who  have
     6  successfully  implemented  similar online insurance verification systems
     7  in other states or to assist in establishing and maintaining such system
     8  in this state.
     9    (b) The commissioner and any private service provider shall each sepa-
    10  rately maintain a contact person for insurers during the  establishment,
    11  implementation  and  operation  of  the  online  insurance  verification
    12  system.
    13    6. The commissioner shall publish for comment and then post a detailed
    14  guide of the online insurance verification system  on  the  department's
    15  website.
    16    7.  Within two years after the online insurance verification system is
    17  installed and fully operational, the  commissioner,  after  consultation
    18  with  insurers,  shall prepare and submit to the governor, the temporary
    19  president of the senate, the speaker of the assembly, the minority lead-
    20  er of the senate and the  minority  leader  of  the  assembly  a  report
    21  containing  the  costs  of  the  online  insurance  verification  system
    22  incurred by the department, insurers and the public and  the  effective-
    23  ness  of the such system in reducing the number of uninsured motor vehi-
    24  cles.
    25    8. The online insurance verification system  shall  be  installed  and
    26  fully  operational  within  eighteen  months after the effective date of
    27  this section and shall undergo an appropriate testing and  pilot  period
    28  of  not  less  than  nine months. Until the successful completion of the
    29  testing and pilot period, no enforcement action shall be taken based  on
    30  the online insurance verification system.
    31   9.  Notwithstanding  any  other  provision  of law or regulation to the
    32  contrary, the provisions to  secure  data  against  unauthorized  access
    33  required  pursuant  to  paragraph (b) of subdivision two of this section
    34  shall require the following:
    35    (a) The information  obtained  by  the  department  pursuant  to  this
    36  section  shall  be  deemed  confidential and proprietary information and
    37  shall not be deemed to be a public record subject to disclosure pursuant
    38  to the public officers law.
    39    (i) Such information shall not be used, sold,  accessed,  utilized  in
    40  any  manner or released by the department to any person, corporation, or
    41  state and local agency, unless explicitly authorized to be  released  to
    42  parties that are entitled to such information pursuant to this section.
    43    (ii) Such information may be released to another state or local agency
    44  or  other  persons  if  the department, insurer and attorney general all
    45  consent to the release of a certain type,  class  or  classification  of
    46  information.
    47    (iii)  The  department  shall institute appropriate measures to ensure
    48  that only authorized persons are permitted to  access  such  information
    49  for the purposes specified by this section.
    50    (b)  Persons  who  knowingly  release or disclose information from the
    51  online insurance verification system for  a  purpose  other  than  those
    52  described  as  authorized by this section or to a person not entitled to
    53  receive it shall be guilty of a misdemeanor for  each  such  release  or
    54  disclosure.
    55    (c)  The  department  shall  continue  to  release information that it
    56  currently discloses to the public such as motor vehicle registration and

        A. 6335--B                          4
 
     1  title abstracts, other reports concerning  a  motor  vehicle  operators'
     2  driving  history  and  insurance  claims  history,  and information to a
     3  person or persons suffering a loss or injury  due  to  a  motor  vehicle
     4  accident in which an insured individual was involved.
     5    §  5.  The  vehicle and traffic law is amended by adding a new section
     6  312-c to read as follows:
     7    § 312-c. Insurer responsibilities for the online  insurance  verifica-
     8  tion  system.  1. (a) Insurers shall coordinate with the commissioner in
     9  establishing and maintaining the online  insurance  verification  system
    10  established  pursuant to section three hundred twelve-b of this article,
    11  and shall provide access to motor vehicle insurance policy status infor-
    12  mation as provided by any  rules  and  regulations  promulgated  by  the
    13  commissioner.
    14    (b)  Every  insurer  that is licensed to issue motor vehicle insurance
    15  policies or is authorized to do business in the state shall comply  with
    16  this  section  and  section  three  hundred twelve-b of this article for
    17  verification of evidence of vehicle insurance for every vehicle  insured
    18  by  that  insurer  in the state as required by the rules and regulations
    19  promulgated by the commissioner.
    20    (c) Insurers shall maintain a historical record of the  online  insur-
    21  ance  verification  system  data for a maximum period of six months from
    22  the date any request and response is made.
    23    (d) Insurers shall respond  to  requests  from  the  online  insurance
    24  verification  system within the time period prescribed by the specifica-
    25  tions and standards set by the insurance  industry  committee  on  motor
    26  vehicle administration.
    27    2.  (a)  Insurers  shall  provide commercial automobile customers with
    28  documentation that the vehicle is insured under a commercial auto  poli-
    29  cy.    Documentation  shall  be an insurance identification card clearly
    30  marked in the title with the following, "Commercial Auto Insurance Iden-
    31  tification Card".
    32    (b) For the purposes of this subdivision, "commercial  auto  coverage"
    33  shall  be  defined as any coverage provided to an insured, regardless of
    34  the number of vehicles or  entity  covered  under  the  commercial  auto
    35  coverage  and  rated from a commercial manual approved by the department
    36  of financial services.
    37    3. Nothing in this section shall prohibit an insurer  from  using  the
    38  services of a third-party vendor or provider in order to comply with the
    39  online  insurance verification system required by sections three hundred
    40  twelve and three hundred twelve-b of this article.
    41    4. The commissioner may promulgate any rules and regulations necessary
    42  to accommodate insurers that write a limited number of policies  in  the
    43  state and such insurers that would be unduly burdened by this section.
    44    §  6.  a. There is hereby established an online insurance verification
    45  advisory council. It shall consist of 14 voting members to be  appointed
    46  as  follows: the commissioner of the department of motor vehicles or his
    47  or her duly designated representative, the superintendent  of  financial
    48  services  or  his or her duly designated representative, the superinten-
    49  dent of the New York State Police or his or her duly  designated  repre-
    50  sentative;  and  eleven at-large members, of which, two members shall be
    51  appointed by the governor, two members shall be appointed by the  tempo-
    52  rary    president  of  the senate, two members shall be appointed by the
    53  speaker of the assembly, one member shall be appointed by  the  minority
    54  leader  of  the  senate,  one  member shall be appointed by the minority
    55  leader of the assembly, as well as  three  insurance  company  represen-
    56  tatives,  one  appointed  by  the  New  York  Insurance Association, one

        A. 6335--B                          5
 
     1  appointed by the American Property and Casualty  Insurance  Association,
     2  and one appointed by the National Association of Mutual Insurance Compa-
     3  nies.  The  commissioner  of the department of motor vehicles, or his or
     4  her  duly  designated  representative, shall serve as chairperson of the
     5  advisory council. The eleven appointed members shall serve at the pleas-
     6  ure of the appointing  official  or  organization.  Vacancies  shall  be
     7  filled in the manner provided for original appointments.
     8    b.  The  members of the advisory council shall receive no compensation
     9  for their services.
    10    c.  Notwithstanding any inconsistent provision of any general, special
    11  or local law, ordinance, resolution or charter, no  officer,  member  or
    12  employee  of the state or of any public corporation shall forfeit his or
    13  her office or employment by reason of his or her acceptance of  appoint-
    14  ment  as  a  member  of  the advisory council, nor shall service as such
    15  council member be deemed incompatible or in conflict with such office or
    16  employment.
    17    d. The advisory council is charged with the following duties:
    18    (1) Facilitate the implementation of the online insurance verification
    19  system;
    20    (2) Develop a guide for insurers providing data and other  information
    21  necessary for compliance along with other necessary regulations;
    22    (3) Coordinate and conduct a testing phase;
    23    (4) Identify necessary changes during the testing phase; and
    24    (5)  Issue  recommendations  based  on  periodic reviews of the online
    25  insurance verification system.
    26    e. The advisory council may request and shall receive from any  subdi-
    27  vision,  department, board, commission, office, agency, or other instru-
    28  mentality of the state or of  any  political  subdivision  thereof  such
    29  facilities,  assistance  and data as it deems necessary or desirable for
    30  the proper execution of its powers and  duties  and  to  effectuate  the
    31  purposes set forth in this act.
    32    §  7.  Subdivision  1 of section 312 of the vehicle and traffic law is
    33  amended by adding a new paragraph (c) to read as follows:
    34    (c) When the department has evidence that a motor vehicle has been  or
    35  is  currently  being  operated  without  insurance,  the owner's vehicle
    36  registration may be suspended or revoked. The current registration shall
    37  not be reinstated and  new  registration  shall  not  be  issued  unless
    38  evidence of insurance has been provided to the department and any appli-
    39  cable reinstatement fees as prescribed by the department have been paid.
    40  Any  applicable  fees  are in addition to any other fines, penalties and
    41  fees required by law.
    42    § 8. Subdivision 1 of section 312-a of the vehicle and traffic law, as
    43  amended by chapter 781 of the laws  of  1983,  is  amended  to  read  as
    44  follows:
    45    1.  Upon issuance of an owner's policy of liability insurance or other
    46  financial security required by this  chapter,  an  insurer  shall  issue
    47  proof of insurance in accordance with the regulations promulgated by the
    48  commissioner  pursuant  to [paragraph (b) of subdivision two of section]
    49  sections three hundred [thirteen] twelve-b and three hundred twelve-c of
    50  this article.
    51    § 9  This  act  shall  take  effect  immediately;  provided,  however,
    52  sections  two  and  three  of this act shall take effect when the online
    53  insurance verification system is installed and fully operational  pursu-
    54  ant to subdivision 8 of section 312-b of the vehicle and traffic law, as
    55  added  by section four of this act; and provided further, sections four,
    56  five, seven and eight of this act shall take effect one  year  after  it

        A. 6335--B                          6
 
     1  shall  have become a law. Effective immediately, the addition, amendment
     2  and/or repeal of any rule or regulation necessary for the implementation
     3  of this act on its effective date are authorized to be made on or before
     4  such date.
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