NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4404A
SPONSOR: Weprin TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to establishing
an online insurance verification system for motor vehicle insurance
PURPOSE OR GENERAL IDEA OF BILL:
To modernize New York State's motor vehicle liability reporting system.
SUMMARY OF PROVISION:
Section 1 Amends Subdivision 2, 3, 4 of section 313 of the vehicle and
traffic law.
Section 2 amends vehicle and trafic law by adding a new section 312-b.
Section 3 Amends amends vehicle and trafic law by adding a new section
312-c. Section 4 amends subdivision 3 of section 317.
Section 5 establishes the effective date.
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 cover-
age.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.
The "online verification of automobile liability insurance act" would
create an Online Verification system (OLV). This system allows for real-
time verification of automobile insurance and reduces the likelihood of
drivers being falsely accused of driving without insurance coverage.
Unlike the current system the OLV system verifies direclty against the
insurance companies records within seconds. In addition, this system can
be used by law enforcement during roadside stops and accident investi-
gations, and the within the court system. 18 states, including Califor-
nia and Illinois have adopted a version of an OLV system.
The "online verification of automobile liability insurance 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.
LEGISLATIVE HISTORY:
New Bill.
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day 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 are authorized to be made and completed on or before such
effective date,
