Bill Text: MN SF752 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Online motor vehicle insurance verification system establishment and electronic insurance identification card authorization
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2012-03-01 - Comm report: To pass and re-referred to State Government Innovation and Veterans [SF752 Detail]
Download: Minnesota-2011-SF752-Engrossed.html
1.2relating to insurance; providing for the establishment of an online motor vehicle
1.3insurance verification system; amending Minnesota Statutes 2010, sections
1.465B.482; 169.09, subdivision 13; proposing coding for new law in Minnesota
1.5Statutes, chapter 169; repealing Minnesota Statutes 2010, section 65B.482.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 65B.482, is amended to read:
1.865B.482 INSURANCE IDENTIFICATION CARDS.
1.9 Subdivision 1. Issuance of card. Every obligor transacting business in this state
1.10shall provide an insurance identification card for each vehicle covered at the time of
1.11initiating each policy of automobile insurance, as defined in section65B.14, subdivision
1.122 , and at the time of policy renewal. The insurance identification card may be provided
1.13in an electronic format if the insured agrees. When an insured has five or more vehicles
1.14registered in this state, the obligor may use the designation "all owned vehicles" on each
1.15identification card in lieu of a specified description. The card must state:
1.16(1) the insured's name;
1.17(2) the policy number;
1.18(3) the policy dates of coverage;
1.19(4) the make, model, and year of the vehicle being covered;
1.20(5) the vehicle identification number or at least the last three digits of that number;
1.21and
1.22(6) the name of the obligor providing coverage.
1.23 Subd. 2. Notice of criminal penalties. Every obligor transacting business in this
1.24state shall provide to the insured at the time of issuing an insurance identification card
2.1under subdivision 1 a plain-language summary of the criminal penalties imposed by
2.2sections169.791 ,
169.793 , and
169.797 .
2.3 Sec. 2. Minnesota Statutes 2010, section 169.09, subdivision 13, is amended to read:
2.4 Subd. 13. Reports confidential; evidence, fee, penalty, appropriation. (a) All
2.5reports and supplemental information required under this section must be for the use of the
2.6commissioner of public safety and other appropriate state, federal, county, and municipal
2.7governmental agencies for accident analysis purposes, except:
2.8(1) the commissioner of public safety or any law enforcement agency shall, upon
2.9written request of any individual involved in an accident or upon written request of the
2.10representative of the individual's estate, surviving spouse, or one or more surviving next
2.11of kin, or a trustee appointed under section573.02 , or other person injured in person,
2.12property, or means of support, or who incurs other pecuniary loss by virtue of the accident,
2.13disclose to the requester, the requester's legal counsel, or a representative of the requester's
2.14insurer the report required under subdivision 8;
2.15(2) the commissioner of public safety shall, upon written request, provide the driver
2.16filing a report under subdivision 7 with a copy of the report filed by the driver;
2.17(3) the commissioner of public safety may verify with insurance companies vehicle
2.18insurance information to enforce sections65B.48 ,
169.792 ,
169.793 ,
169.796, and
2.19169.797
;
2.20(4) the commissioner of public safety shall provide the commissioner of
2.21transportation the information obtained for each traffic accident involving a commercial
2.22motor vehicle, for purposes of administering commercial vehicle safety regulations; and
2.23(5) the commissioner of public safety may give to the United States Department of
2.24Transportation commercial vehicle accident information in connection with federal grant
2.25programs relating to safety.
2.26(b) Accident reports and data contained in the reports are not discoverable under any
2.27provision of law or rule of court. No report shall be used as evidence in any trial, civil or
2.28criminal, or any action for damages or criminal proceedings arising out of an accident.
2.29However, the commissioner of public safety shall furnish, upon the demand of any person
2.30who has or claims to have made a report or upon demand of any court, a certificate
2.31showing that a specified accident report has or has not been made to the commissioner
2.32solely to prove compliance or failure to comply with the requirements that the report be
2.33made to the commissioner.
2.34(c) Nothing in this subdivision prevents any individual who has made a report under
2.35this section from providing information to any individuals involved in an accident or their
3.1representatives or from testifying in any trial, civil or criminal, arising out of an accident,
3.2as to facts within the individual's knowledge. It is intended by this subdivision to render
3.3privileged the reports required, but it is not intended to prohibit proof of the facts to
3.4which the reports relate.
3.5(d) Disclosing any information contained in any accident report, except as provided
3.6in this subdivision, section13.82, subdivision 3 or 6 , or other statutes, is a misdemeanor.
3.7(e) The commissioner of public safety shall charge authorized persons as described
3.8in paragraph (a) a $5 fee for a copy of an accident report. Ninety percent of the $5 fee
3.9collected under this paragraph must be deposited in the special revenue fund and credited
3.10to the driver services operating account established in section299A.705 and ten percent
3.11must be deposited in the general fund. The commissioner may also furnish an electronic
3.12copy of the database of accident records, which must not contain personal or private data
3.13on an individual, to private agencies as provided in paragraph (g), for not less than the cost
3.14of preparing the copies on a bulk basis as provided in section13.03, subdivision 3 .
3.15(f) The fees specified in paragraph (e) notwithstanding, the commissioner and law
3.16enforcement agencies shall charge commercial users who request access to response or
3.17incident data relating to accidents a fee not to exceed 50 cents per record. "Commercial
3.18user" is a user who in one location requests access to data in more than five accident
3.19reports per month, unless the user establishes that access is not for a commercial purpose.
3.20Of the money collected by the commissioner under this paragraph, 90 percent must be
3.21deposited in the special revenue fund and credited to the driver services operating account
3.22established in section299A.705 and ten percent must be deposited in the general fund.
3.23(g) The fees in paragraphs (e) and (f) notwithstanding, the commissioner shall
3.24provide an electronic copy of the accident records database to the public on a case-by-case
3.25basis using the cost-recovery charges provided for under section13.03, subdivision
3.263 . The database provided must not contain personal or private data on an individual.
3.27However, unless the accident records database includes the vehicle identification number,
3.28the commissioner shall include the vehicle registration plate number if a private agency
3.29certifies and agrees that the agency:
3.30(1) is in the business of collecting accident and damage information on vehicles;
3.31(2) will use the vehicle registration plate number only for identifying vehicles that
3.32have been involved in accidents or damaged, to provide this information to persons
3.33seeking access to a vehicle's history and not for identifying individuals or for any other
3.34purpose; and
3.35(3) will be subject to the penalties and remedies under sections13.08 and
13.09 .
4.1 Sec. 3. [169.7962] ONLINE VERIFICATION SYSTEM.
4.2 Subdivision 1. Rulemaking. The department shall adopt by rule online verification
4.3of evidence of insurance as required by this section, subject to subdivisions 2 to 14.
4.4 Subd. 2. Status. Unless otherwise described in this section, the online verification
4.5of evidence of insurance system that is adopted by the department by rule is the sole and
4.6exclusive system for reporting and verifying evidence of insurance.
4.7 Subd. 3. Operation. The verification system must be capable of sending requests
4.8to insurers for verification of evidence of insurance via Web services established by the
4.9insurers, through the Internet, World Wide Web, or a similar proprietary or common carrier
4.10electronic system, in compliance with the specifications and standards of the Insurance
4.11Industry Committee on Motor Vehicle Administration (IICMVA), with enhancements,
4.12additions, and modification as required by the department but which do not conflict,
4.13nullify, or add requirements that are inconsistent with the specifications and standards of
4.14the IICMVA. The system must include appropriate provisions to secure its data against
4.15unauthorized access and must maintain a historical record of all system requests and
4.16responses for a period of at least six months from the date of the requests and responses.
4.17The system must be used for verification of the evidence of mandatory liability
4.18insurance coverage as prescribed by the laws of this state and must be accessible to
4.19authorized personnel of the department, the courts, law enforcement personnel, and any
4.20other entities authorized by the state as permitted by state or federal privacy laws, and it
4.21must be interfaced, wherever appropriate, with existing state systems. The system must
4.22include information that enables the department to make inquiries to insurers of evidence
4.23of insurance that is consistent with insurance industry and IICMVA recommendations,
4.24specifications, and standards by using multiple data elements for greater matching
4.25accuracy, specifically: Insurer National Association of Insurance Commissioners company
4.26code, vehicle identification number, policy number, or as described in the specifications
4.27and standards of the IICMVA.
4.28At the discretion of the department, rules may offer insurers who write fewer
4.29policies an alternative method for reporting insurance policy data instead of establishing
4.30Web services.
4.31 Subd. 4. Response time. Consistent with the time periods prescribed by the
4.32IICMVA's specifications and standards, the vendor is responsible for having its verification
4.33system respond to each requestor within a time period as established by the state agencies.
4.34An insurer's system must respond within the time period prescribed by the IICMVA's
4.35specifications and standards. The system must be available to accommodate the time
4.36period established.
5.1 Subd. 5. Department's powers. When the department has reason to believe a motor
5.2vehicle has been or is currently being operated without insurance, the owner's vehicle
5.3registration may be suspended or revoked. The registration may not be reinstated or a new
5.4registration may not be issued unless evidence of insurance has been provided to the
5.5department and any applicable reinstatement fees as prescribed by the department have
5.6been paid. These fees are in addition to any other applicable fines, penalties, and fees.
5.7 Subd. 6. Consultation. The department shall consult with representatives of the
5.8insurance industry and private service providers in determining the objectives, details, and
5.9deadlines related to the system.
5.10 Subd. 7. Guide. The department shall publish for comment and then issue a detailed
5.11guide of its online verification system.
5.12 Subd. 8. Contacts. The department and its private service provider, if any, must
5.13each maintain a contact person for insurers during the establishment, implementation, and
5.14operation of the system.
5.15 Subd. 9. Verification and related administrative provisions. If the department
5.16has reason to believe a vehicle owner does not have valid vehicle insurance, it may also
5.17request an insurer to verify the existence of an automobile liability policy in a form
5.18approved by the department not later than ten days from the date the request is made. In
5.19addition, insurers shall cooperate with the department in establishing and maintaining the
5.20verification system provided by this section, and shall provide access to motor vehicle
5.21insurance policy status information as provided in the rules established by the department.
5.22 Subd. 10. Compliance. Every property and casualty insurance company that is
5.23licensed to issue motor vehicle insurance policies or is authorized to do business in
5.24Minnesota shall comply with this section for verification of evidence of vehicle insurance
5.25for every vehicle insured by that company in Minnesota as required by the rules of the
5.26department.
5.27 Subd. 11. Record keeping. Insurers shall maintain a historical record of all system
5.28requests and responses for a minimum of six months from the date of the requests and
5.29responses.
5.30 Subd. 12. Immunity. Insurers are immune from civil and administrative liability for
5.31good faith efforts to comply with the terms of this section.
5.32 Subd. 13. Nonapplication. (a) For the purposes of this section, commercial
5.33auto coverage is defined as any coverage provided to an insured, regardless of number
5.34of vehicles or entity covered, under a commercial coverage form and rated from a
5.35commercial manual approved by the Department of Commerce. This section does not
6.1apply to vehicles insured under commercial auto coverage; however, insurers of such
6.2vehicles may participate on a voluntary basis.
6.3(b) Insurers shall provide commercial automobile customers with evidence reflecting
6.4that the vehicle is insured under a commercial auto policy. Sufficient evidence is an
6.5insurance identification card clearly marked in the title with the identifier "Commercial
6.6Auto Insurance Identification Card."
6.7 Subd. 14. Authority to contract. Nothing in this legislation prohibits the
6.8department from contracting with a private service provider or providers who have
6.9successfully implemented similar systems in other states to assist in establishing and
6.10maintaining the verification system.
6.11 Sec. 4. REPORT ON EFFECTIVENESS.
6.12No more than six months after the online insurance verification system has been in
6.13operation for two years, the department, after consultation with law enforcement, other
6.14state agencies, and the insurers, shall report to the legislature as to the benefits and the
6.15costs of the program for the department, law enforcement, other state agencies, insurers,
6.16and the public, and the effectiveness of the program in reducing the number of uninsured
6.17motor vehicles. The department shall comply with the requirements of Minnesota Statutes,
6.18sections 3.195 and 3.197 in reporting to the legislature.
6.19 Sec. 5. REPEALER.
6.20Minnesota Statutes 2010, section 65B.482, as amended by section 1, is repealed
6.21effective August 1, 2013.
6.22 Sec. 6. EFFECTIVE DATE; APPLICATION; TESTING AND PILOT PERIOD.
6.23Sections 1 to 4 are effective on August 1, 2012. The verification system must be
6.24installed and fully operational by August 1, 2013, following an appropriate testing and
6.25pilot period of at least nine months. Until successful completion of the testing and pilot
6.26period, no enforcement action may be taken based on the system.
1.3insurance verification system; amending Minnesota Statutes 2010, sections
1.465B.482; 169.09, subdivision 13; proposing coding for new law in Minnesota
1.5Statutes, chapter 169; repealing Minnesota Statutes 2010, section 65B.482.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 65B.482, is amended to read:
1.865B.482 INSURANCE IDENTIFICATION CARDS.
1.9 Subdivision 1. Issuance of card. Every obligor transacting business in this state
1.10shall provide an insurance identification card for each vehicle covered at the time of
1.11initiating each policy of automobile insurance, as defined in section
1.122
1.13in an electronic format if the insured agrees. When an insured has five or more vehicles
1.14registered in this state, the obligor may use the designation "all owned vehicles" on each
1.15identification card in lieu of a specified description. The card must state:
1.16(1) the insured's name;
1.17(2) the policy number;
1.18(3) the policy dates of coverage;
1.19(4) the make, model, and year of the vehicle being covered;
1.20(5) the vehicle identification number or at least the last three digits of that number;
1.21and
1.22(6) the name of the obligor providing coverage.
1.23 Subd. 2. Notice of criminal penalties. Every obligor transacting business in this
1.24state shall provide to the insured at the time of issuing an insurance identification card
2.1under subdivision 1 a plain-language summary of the criminal penalties imposed by
2.2sections
2.3 Sec. 2. Minnesota Statutes 2010, section 169.09, subdivision 13, is amended to read:
2.4 Subd. 13. Reports confidential; evidence, fee, penalty, appropriation. (a) All
2.5reports and supplemental information required under this section must be for the use of the
2.6commissioner of public safety and other appropriate state, federal, county, and municipal
2.7governmental agencies for accident analysis purposes, except:
2.8(1) the commissioner of public safety or any law enforcement agency shall, upon
2.9written request of any individual involved in an accident or upon written request of the
2.10representative of the individual's estate, surviving spouse, or one or more surviving next
2.11of kin, or a trustee appointed under section
2.12property, or means of support, or who incurs other pecuniary loss by virtue of the accident,
2.13disclose to the requester, the requester's legal counsel, or a representative of the requester's
2.14insurer the report required under subdivision 8;
2.15(2) the commissioner of public safety shall, upon written request, provide the driver
2.16filing a report under subdivision 7 with a copy of the report filed by the driver;
2.17(3) the commissioner of public safety may verify with insurance companies vehicle
2.18insurance information to enforce sections
2.20(4) the commissioner of public safety shall provide the commissioner of
2.21transportation the information obtained for each traffic accident involving a commercial
2.22motor vehicle, for purposes of administering commercial vehicle safety regulations; and
2.23(5) the commissioner of public safety may give to the United States Department of
2.24Transportation commercial vehicle accident information in connection with federal grant
2.25programs relating to safety.
2.26(b) Accident reports and data contained in the reports are not discoverable under any
2.27provision of law or rule of court. No report shall be used as evidence in any trial, civil or
2.28criminal, or any action for damages or criminal proceedings arising out of an accident.
2.29However, the commissioner of public safety shall furnish, upon the demand of any person
2.30who has or claims to have made a report or upon demand of any court, a certificate
2.31showing that a specified accident report has or has not been made to the commissioner
2.32solely to prove compliance or failure to comply with the requirements that the report be
2.33made to the commissioner.
2.34(c) Nothing in this subdivision prevents any individual who has made a report under
2.35this section from providing information to any individuals involved in an accident or their
3.1representatives or from testifying in any trial, civil or criminal, arising out of an accident,
3.2as to facts within the individual's knowledge. It is intended by this subdivision to render
3.3privileged the reports required, but it is not intended to prohibit proof of the facts to
3.4which the reports relate.
3.5(d) Disclosing any information contained in any accident report, except as provided
3.6in this subdivision, section
3.7(e) The commissioner of public safety shall charge authorized persons as described
3.8in paragraph (a) a $5 fee for a copy of an accident report. Ninety percent of the $5 fee
3.9collected under this paragraph must be deposited in the special revenue fund and credited
3.10to the driver services operating account established in section
3.11must be deposited in the general fund. The commissioner may also furnish an electronic
3.12copy of the database of accident records, which must not contain personal or private data
3.13on an individual, to private agencies as provided in paragraph (g), for not less than the cost
3.14of preparing the copies on a bulk basis as provided in section
3.15(f) The fees specified in paragraph (e) notwithstanding, the commissioner and law
3.16enforcement agencies shall charge commercial users who request access to response or
3.17incident data relating to accidents a fee not to exceed 50 cents per record. "Commercial
3.18user" is a user who in one location requests access to data in more than five accident
3.19reports per month, unless the user establishes that access is not for a commercial purpose.
3.20Of the money collected by the commissioner under this paragraph, 90 percent must be
3.21deposited in the special revenue fund and credited to the driver services operating account
3.22established in section
3.23(g) The fees in paragraphs (e) and (f) notwithstanding, the commissioner shall
3.24provide an electronic copy of the accident records database to the public on a case-by-case
3.25basis using the cost-recovery charges provided for under section
3.263
3.27However, unless the accident records database includes the vehicle identification number,
3.28the commissioner shall include the vehicle registration plate number if a private agency
3.29certifies and agrees that the agency:
3.30(1) is in the business of collecting accident and damage information on vehicles;
3.31(2) will use the vehicle registration plate number only for identifying vehicles that
3.32have been involved in accidents or damaged, to provide this information to persons
3.33seeking access to a vehicle's history and not for identifying individuals or for any other
3.34purpose; and
3.35(3) will be subject to the penalties and remedies under sections
4.1 Sec. 3. [169.7962] ONLINE VERIFICATION SYSTEM.
4.2 Subdivision 1. Rulemaking. The department shall adopt by rule online verification
4.3of evidence of insurance as required by this section, subject to subdivisions 2 to 14.
4.4 Subd. 2. Status. Unless otherwise described in this section, the online verification
4.5of evidence of insurance system that is adopted by the department by rule is the sole and
4.6exclusive system for reporting and verifying evidence of insurance.
4.7 Subd. 3. Operation. The verification system must be capable of sending requests
4.8to insurers for verification of evidence of insurance via Web services established by the
4.9insurers, through the Internet, World Wide Web, or a similar proprietary or common carrier
4.10electronic system, in compliance with the specifications and standards of the Insurance
4.11Industry Committee on Motor Vehicle Administration (IICMVA), with enhancements,
4.12additions, and modification as required by the department but which do not conflict,
4.13nullify, or add requirements that are inconsistent with the specifications and standards of
4.14the IICMVA. The system must include appropriate provisions to secure its data against
4.15unauthorized access and must maintain a historical record of all system requests and
4.16responses for a period of at least six months from the date of the requests and responses.
4.17The system must be used for verification of the evidence of mandatory liability
4.18insurance coverage as prescribed by the laws of this state and must be accessible to
4.19authorized personnel of the department, the courts, law enforcement personnel, and any
4.20other entities authorized by the state as permitted by state or federal privacy laws, and it
4.21must be interfaced, wherever appropriate, with existing state systems. The system must
4.22include information that enables the department to make inquiries to insurers of evidence
4.23of insurance that is consistent with insurance industry and IICMVA recommendations,
4.24specifications, and standards by using multiple data elements for greater matching
4.25accuracy, specifically: Insurer National Association of Insurance Commissioners company
4.26code, vehicle identification number, policy number, or as described in the specifications
4.27and standards of the IICMVA.
4.28At the discretion of the department, rules may offer insurers who write fewer
4.29policies an alternative method for reporting insurance policy data instead of establishing
4.30Web services.
4.31 Subd. 4. Response time. Consistent with the time periods prescribed by the
4.32IICMVA's specifications and standards, the vendor is responsible for having its verification
4.33system respond to each requestor within a time period as established by the state agencies.
4.34An insurer's system must respond within the time period prescribed by the IICMVA's
4.35specifications and standards. The system must be available to accommodate the time
4.36period established.
5.1 Subd. 5. Department's powers. When the department has reason to believe a motor
5.2vehicle has been or is currently being operated without insurance, the owner's vehicle
5.3registration may be suspended or revoked. The registration may not be reinstated or a new
5.4registration may not be issued unless evidence of insurance has been provided to the
5.5department and any applicable reinstatement fees as prescribed by the department have
5.6been paid. These fees are in addition to any other applicable fines, penalties, and fees.
5.7 Subd. 6. Consultation. The department shall consult with representatives of the
5.8insurance industry and private service providers in determining the objectives, details, and
5.9deadlines related to the system.
5.10 Subd. 7. Guide. The department shall publish for comment and then issue a detailed
5.11guide of its online verification system.
5.12 Subd. 8. Contacts. The department and its private service provider, if any, must
5.13each maintain a contact person for insurers during the establishment, implementation, and
5.14operation of the system.
5.15 Subd. 9. Verification and related administrative provisions. If the department
5.16has reason to believe a vehicle owner does not have valid vehicle insurance, it may also
5.17request an insurer to verify the existence of an automobile liability policy in a form
5.18approved by the department not later than ten days from the date the request is made. In
5.19addition, insurers shall cooperate with the department in establishing and maintaining the
5.20verification system provided by this section, and shall provide access to motor vehicle
5.21insurance policy status information as provided in the rules established by the department.
5.22 Subd. 10. Compliance. Every property and casualty insurance company that is
5.23licensed to issue motor vehicle insurance policies or is authorized to do business in
5.24Minnesota shall comply with this section for verification of evidence of vehicle insurance
5.25for every vehicle insured by that company in Minnesota as required by the rules of the
5.26department.
5.27 Subd. 11. Record keeping. Insurers shall maintain a historical record of all system
5.28requests and responses for a minimum of six months from the date of the requests and
5.29responses.
5.30 Subd. 12. Immunity. Insurers are immune from civil and administrative liability for
5.31good faith efforts to comply with the terms of this section.
5.32 Subd. 13. Nonapplication. (a) For the purposes of this section, commercial
5.33auto coverage is defined as any coverage provided to an insured, regardless of number
5.34of vehicles or entity covered, under a commercial coverage form and rated from a
5.35commercial manual approved by the Department of Commerce. This section does not
6.1apply to vehicles insured under commercial auto coverage; however, insurers of such
6.2vehicles may participate on a voluntary basis.
6.3(b) Insurers shall provide commercial automobile customers with evidence reflecting
6.4that the vehicle is insured under a commercial auto policy. Sufficient evidence is an
6.5insurance identification card clearly marked in the title with the identifier "Commercial
6.6Auto Insurance Identification Card."
6.7 Subd. 14. Authority to contract. Nothing in this legislation prohibits the
6.8department from contracting with a private service provider or providers who have
6.9successfully implemented similar systems in other states to assist in establishing and
6.10maintaining the verification system.
6.11 Sec. 4. REPORT ON EFFECTIVENESS.
6.12No more than six months after the online insurance verification system has been in
6.13operation for two years, the department, after consultation with law enforcement, other
6.14state agencies, and the insurers, shall report to the legislature as to the benefits and the
6.15costs of the program for the department, law enforcement, other state agencies, insurers,
6.16and the public, and the effectiveness of the program in reducing the number of uninsured
6.17motor vehicles. The department shall comply with the requirements of Minnesota Statutes,
6.18sections 3.195 and 3.197 in reporting to the legislature.
6.19 Sec. 5. REPEALER.
6.20Minnesota Statutes 2010, section 65B.482, as amended by section 1, is repealed
6.21effective August 1, 2013.
6.22 Sec. 6. EFFECTIVE DATE; APPLICATION; TESTING AND PILOT PERIOD.
6.23Sections 1 to 4 are effective on August 1, 2012. The verification system must be
6.24installed and fully operational by August 1, 2013, following an appropriate testing and
6.25pilot period of at least nine months. Until successful completion of the testing and pilot
6.26period, no enforcement action may be taken based on the system.
