Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Motor Vehicle Insurance Verification Act; requires Motor Vehicle Commission to establish online motor vehicle insurance verification system.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning an online verification system for motor vehicle insurance.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the Motor Vehicle Insurance Verification Act.
2. a. Notwithstanding any other law to the contrary, the New Jersey Motor Vehicle Commission (hereinafter the commission) shall establish an accessible system for online verification of the evidence of motor vehicle insurance in accordance with the provisions of this act. The goal of the system shall be to assist in the identification of uninsured motorists in the most effective way possible.
b. Motor vehicle insurers authorized to do business in this State (hereinafter insurers) shall provide policy information for the on-line insurance verification system and otherwise cooperate with the commission in establishing the system in accordance with the provisions of this act.
c. The online insurance verification system established by this act shall be the sole system used in this State for the purpose of verifying evidence of motor vehicle insurance required by the laws of this State. Implementation of the on-line insurance verification system shall supersede and replace any motor vehicle insurance verification system used in this State on the effective date of this act.
3. a. The commission shall develop and implement an online insurance verification system that meets all of the following requirements:
(1) The verification system shall allow for requests to be sent to insurers for verification of evidence of insurance via web services established by the insurers, through the Internet, world wide web or a similar proprietary or common carrier electronic system, in compliance with the specifications and standards of the Insurance Industry Committee on Motor Vehicle Administration (hereinafter IICMVA), with enhancements, additions, and modification as required by the commission so long as they do not conflict, nullify, or add requirements that are inconsistent with the specifications and standards of the IICMVA. The verification system shall include appropriate provisions to secure its data against unauthorized access and the commission shall maintain a historical record of the system data for a period of six to twelve months from the date of each request and response.
(2) The verification system shall be used for verification of the evidence of mandatory motor vehicle insurance coverage as prescribed by the laws of the State. The verification system shall be made accessible to all law enforcement officers for the purpose of enforcing the mandatory motor vehicle insurance requirements of section 1 of P.L.1972, c.197 (C.39:6B-1) through capabilities for real-time verification of compliance with mandatory insurance requirements at traffic stops and other appropriate events. The verification system shall be also accessible to authorized personnel of the commission, the courts, and any other entities authorized by the State as permitted by State or federal privacy laws, and it shall be interfaced, wherever appropriate, with existing State systems.
(3) The verification system shall include information to enable the commission to make inquiries to insurers about evidence of insurance in a manner that is consistent with insurance industry and IICMVA recommendations, specifications, and standards by using multiple data elements for greater matching accuracy, including the following: NAIC (National Association of Insurance Commissioners) insurance company code, Vehicle Identification Number, policy number, or otherwise as described in the specifications and standards of the IICMVA.
(4) The commission may adopt rules and regulations to provide to insurers who write a minimum number of policies, as determined by the commission, the authority to use an alternative method for reporting insurance policy data instead of establishing the web services otherwise required by this act.
b. The commission shall maintain the online insurance verification system in a manner that allows the system to respond to a requestor entitled to use the system within a time period to be established by the commission. An insurer shall maintain its part of the system in a manner that allows the system to respond to a requestor entitled to use the system within the time period prescribed by the IICMVAs specifications and standards.
c. The commission shall consult with representatives of the insurance industry and private Internet service providers to determine the objectives, details, and deadlines related to the online insurance verification system.
d. The commission shall publish for public comment, and then issue, a detailed guide of its online insurance verification system.
e. The commission and its private service provider, if any, shall each maintain a contact person for insurers during the establishment, implementation, and operation of the online insurance verification system.
f. When the commission has reason to believe that a motor vehicle has been or is currently being operated without insurance, the commission may suspend or revoke the owners motor vehicle registration in accordance with the provisions of section 50 of P.L.1990, c.8 (C.17:33B-41) and other applicable provisions of New Jersey law. The registration shall not be reinstated and a new registration shall not be issued unless evidence of insurance has been provided to the commission and any applicable reinstatement fees as prescribed by the commission have been paid. These fees shall be in addition to any other applicable fines, penalties, and fees.
g. Nothing in this act shall be construed to prohibit the commission from contracting with a private Internet service provider or providers who have successfully implemented similar systems in other states to assist in establishing and maintaining the online insurance verification system.
h. In addition to the online insurance identification system provided for by this act, if the commission has reason to believe that a motor vehicle owner does not have valid motor vehicle insurance as required under State law, it may request an insurer to verify the existence of a motor vehicle insurance policy in a manner and a time period to be prescribed by the commission but not greater than 30 days from the date the request is made.
i. An insurer shall cooperate with the commission in establishing and maintaining the online insurance verification system, and shall provide access to motor vehicle insurance policy status information in accordance with a process to be prescribed by the commission by regulation. An insurer shall comply with this sections requirements for verification of evidence of motor vehicle insurance for every motor vehicle insured by that company in New Jersey. An insurer shall maintain a historical record of its system data for a minimum period of six months from the date of the request and response.
j. This section shall not apply to vehicles insured under commercial motor vehicle insurance coverage, except that an insurer of such vehicles may participate on a voluntary basis. For the purposes of this section, commercial motor vehicle coverage means any coverage provided to an insured, regardless of the number of vehicles or the entity covered, under a commercial coverage form and rated from a commercial manual approved by the Department of Banking and Insurance.
k. An insurer shall