S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5331
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 20, 2025
                                ___________
 
 Introduced  by  Sens. BAILEY, ADDABBO -- 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 motor  vehicle  insurance;
   and to repeal certain provisions of such law relating to motor vehicle
   insurance 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. 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
 three hundred thirteen of this article].
   §  2.  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 are REPEALED.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.  Subdivision 3 of section 313 of the vehicle and traffic law, as
 amended by chapter 781 of the laws  of  1983,  is  amended  to  read  as
 follows:
   3.  A  cancellation  or termination for which notice is required to be
 filed with  the  commissioner  [pursuant  to  subdivision  two  of  this
 section]  shall  not be effective with respect to persons other than the
 named insured and members of the insured's household until  the  insurer
 has filed a notice thereof with the commissioner or until another insur-
 ance  policy  covering  the  same  risk has been procured, except that a
 notice filed with the commissioner, in  the  format  prescribed  by  the
 commissioner,  [within  the period prescribed in subdivision two of this
 section] shall be effective as of the date certified therein, regardless

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08820-01-5
              

 S. 5331                             2
 
 of whether a suspension  order  is  issued  pursuant  to  section  three
 hundred  eighteen of this article. A receipt from the department stating
 that a notice of termination has been filed shall be  deemed  conclusive
 evidence of such filing. An insurer shall cooperate with the commission-
 er in attempting to identify persons not in compliance with this article
 in  cases  where the information reported by the insurer does not corre-
 spond with records maintained by the department.
   § 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 RULES AND REGULATIONS PROMULGATED BY THE COMMISSIONER.
   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, THROUGH THE INTERNET, OR A SIMILAR PROPRIETARY OR
 COMMON  CARRIER  ELECTRONIC  SYSTEM,  AS  WELL  AS RECEIVE FROM INSURERS
 VERIFICATION OF EVIDENCE OF INSURANCE IN A FORM AND MANNER AS DETERMINED
 BY THE COMMISSIONER;
   (B) INCLUDE APPROPRIATE PROVISIONS TO SECURE DATA AGAINST UNAUTHORIZED
 ACCESS;
   (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 OTHER ENTITIES AUTHORIZED BY THE STATE AS  PERMITTED  BY
 ANY STATE OR FEDERAL PRIVACY LAWS, AND THE ONLINE INSURANCE VERIFICATION
 SYSTEM  SHALL  BE  INTERFACED,  WHEREVER  APPROPRIATE,  WITH EXISTING OR
 FUTURE STATE SYSTEMS, IN A FORM AND MANNER AS DETERMINED BY THE  COMMIS-
 SIONER;
   (D)  INCLUDE  INFORMATION  WHICH  SHALL  ENABLE THE DEPARTMENT TO MAKE
 INQUIRIES TO INSURERS FOR EVIDENCE OF INSURANCE INCLUDING BUT NOT LIMIT-
 ED TO VEHICLE IDENTIFICATION NUMBERS AND POLICY NUMBERS; AND
   (E) RESPOND TO EACH REQUEST FOR INSURANCE INFORMATION WITHIN AN AMOUNT
 OF TIME DETERMINED BY THE COMMISSIONER AND THE ONLINE INSURANCE  VERIFI-
 CATION  SYSTEM  SHALL  BE  CAPABLE  OF RESPONDING WITHIN THE TIME ESTAB-
 LISHED.
   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.  NOTHING  IN  THIS  SECTION  SHALL  PROHIBIT  THE COMMISSIONER FROM
 CONTRACTING WITH A PRIVATE SECTOR PROVIDER OR PROVIDERS TO IMPLEMENT THE
 REQUIREMENTS OF THIS SECTION OR TO ASSIST IN ESTABLISHING AND  MAINTAIN-
 ING SUCH SYSTEM IN THIS STATE.
   5. THE ONLINE INSURANCE VERIFICATION SYSTEM SHALL UNDERGO AN APPROPRI-
 ATE  TESTING AND PILOT PERIOD OF NOT LESS THAN ONE YEAR, AFTER WHICH THE
 COMMISSIONER MAY CERTIFY THAT SUCH SYSTEM IS FULLY OPERATIONAL.
   § 5. The vehicle and traffic law is amended by adding  a  new  section
 312-c to read as follows:
 S. 5331                             3
 
   §  312-C.  INSURER RESPONSIBILITIES FOR THE ONLINE INSURANCE VERIFICA-
 TION SYSTEM. 1. INSURERS SHALL PROVIDE ACCESS TO MOTOR VEHICLE INSURANCE
 POLICY STATUS INFORMATION AS PROVIDED BY, AND CONSISTENT WITH  ANY  TIME
 FRAMES  ESTABLISHED  BY,  ANY  RULES  AND REGULATIONS PROMULGATED BY THE
 COMMISSIONER.
   2.  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.
   § 6. Paragraph (d) of subdivision 3 of section 317 of the vehicle  and
 traffic law is REPEALED.
   §  7.  This act shall take effect immediately; provided, however, that
 sections one, two, and three of this act  shall  take  effect  when  the
 online  insurance verification system is installed and fully operational
 pursuant to subdivision 5 of section 312-b of the  vehicle  and  traffic
 law,  as  added by section four of this act, as certified by the commis-
 sioner of the department of motor vehicles; provided  that  the  commis-
 sioner  of the department of motor vehicles shall notify the legislative
 bill drafting commission upon the occurrence of  the  enactment  of  the
 legislation  provided  for in sections one, two and three of this act in
 order that the commission may maintain an accurate and timely  effective
 data  base  of the official text of the laws of the state of New York in
 furtherance of effectuating the provisions of section 44 of the legisla-
 tive law and section 70-b of the public officers  law.  Effective  imme-
 diately, 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.