S T A T E O F N E W Y O R K
________________________________________________________________________
5120
2023-2024 Regular Sessions
I N A S S E M B L Y
March 2, 2023
___________
Introduced by M. of A. GUNTHER, HUNTER, D. ROSENTHAL -- read once and
referred 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313 of the vehicle and traffic law are REPEALED.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traffic law is REPEALED.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
A. 5120 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.
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(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
A. 5120 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.
A. 5120 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.