Title: Motor Vehicle Insurance Online Verification System

Summary: Requires DHSMV to create motor vehicle insurance online verification system; provides system requirements; provides requirements for insurers & law enforcement officers.

Full Text:
An act relating to the motor vehicle insurance online verification system; amending s. 316.646, F.S.; requiring law enforcement officers to access online insurance information at traffic stops and crash investigations for certain purposes; amending s. 320.02, F.S.; providing requirements relating to the registration of motor vehicles to conform to changes made by the act; amending s. 324.0221, F.S.; requiring insurers to transmit certain information to the Department of Highway Safety and Motor Vehicles; authorizing the department to verify certain information; authorizing the department to implement a method of insurance verification; creating s. 324.252, F.S.; requi ring the department to establish a system for the online verification of motor vehicle insurance; providing system requirements; providing requirements for insurers; providing requirements for law enforcement officers; providing applicability; authorizing the department to adopt rules; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Subsection (5) of section 316.646, Florida HB 2019 Statutes, is renumbered as subsection (6), and a new subsection (5) is add ed to that section, to read: 316.646 Security required; proof of security and display thereof.-(5) Upon implementation of the motor vehicle insurance online verification system in s. 324.252, a law enforcement officer, during a traffic stop or crash i nvestigation, shall access information from the online verification system to establish compliance with this chapter and chapter and to verify the current validity of the policy described on any insurance identification card produced by the operator of a motor vehicle during the traffic stop or crash investigation. Section 2. Paragraph (f) is added to subsection (5) of section 320.02, Florida Statutes, to read: 320.02 Registration required; application for registration; forms.-(5) (f) Upon imp lementation of the online verification system in s. 324.252, the online verification shall replace the procedures in this subsection, and the department and its authorized agents shall use the verification system unless the verification system is not onlin eor the required information is not available. In such a case, the department and its authorized agents may accept proof of purchase as provided in this subsection to verify the purchase of the required insurance HB 2019 before processing any application for moto rvehicle registration. Section 3. Paragraphs (c) and (d) of subsection (1) and subsection (4) are added to section 324.0221, Florida Statutes, to read: 324.0221 Reports by insurers to the department; suspension of driver license and vehicle registra tions; reinstatement.-(1) (c) An insurer must transmit weekly, in a format prescribed by the department, the insurer's records of all active insurance policies, commonly known as the "book of business," to enable the department to identify uninsured vehicles. (d) The department may verify information on a new policy or a policy cancellation or nonrenewal directly from an insurer's database. This paragraph does not relieve an insurer from the reporting requirement of this section. (4) The department may implement by rule a method of insurance verification. Section 4. Section 324.252, Florida Statutes, is created to read: 324.252 Insurance online verification system.-(1) The department shall establish an online verification system for motor ve hicle insurance, subject to the following: (a) The verification system must be accessible through the HB 2019 Internet by authorized personnel of the department, the courts, law enforcement personnel, any other entities authorized by the department, and insurers authorized by the Office of Insurance Regulation to offer motor vehicle insurance. (b) The verification system must provide for direct access to insurers' records by personnel authorized by the department. (c) The department must conduct a pilot program to test the verification system before statewide use. However, the verification system must be installed and operational by July 1, 2022. (d) The verification system must be available hours a day to verify the insurance status of any motor veh icle registered in this state through the vehicle's identification number, the policy number, the registered owner's name, or other identifying characteristic or marker as prescribed by the department. (e) The department may contract with a private vendo rto assist in establishing and maintaining the verification system. (f) The verification system must include appropriate provisions, consistent with industry standards, to secure its data against unauthorized access and to maintain a record of all information requests. (g) The verification system must include a disaster recovery plan designed to ensure service continuity in the event of a disaster. HB 2019 (h) The verification system must include information that enables the department to make inquiries of evidence of insurance by using multiple data elements for greater matching accuracy, specifically the insurer's National Association of Insurance Commissioners (NAIC) company code, the vehicle identification number, the policy number, the level and type of coverage, or other data elements as established by the department. (2)(a) An insurer authorized to issue a motor vehicle insurance policy in this state must cooperate with the department in establishing and maintaining the verification system and must pr ovide access to motor vehicle insurance policy status information for every motor vehicle insured by the insurer in this state as required by department rule. (b) An insurer authorized to issue a motor vehicle insurance policy in this state must retain a historical record of the system data for years after a policy's termination date. (3) Upon implementation of the online verification system, a law enforcement officer, during a traffic stop or crash investigation, shall access information from the onl ine verification system to establish compliance with this chapter and to verify the current validity of the policy described on any insurance identification card produced by the operator of a motor vehicle during the traffic stop or crash investigation. HB 2019 (4) This section does not apply to vehicles insured under commercial motor vehicle coverage. However, insurers of such vehicles may participate in the verification system on a voluntary basis. (5) The department may adopt rules to administer this section. Section 5. This act shall take effect July 1, 2019.