New York Codes, Rules and Regulations › Title 15 - Department of Motor Vehicles › Chapter I - REGULATIONS OF THE COMMISSIONER › Subchapter C - INSURANCE › Part 34 - Motor Vehicle Liability Insurance Reporting › Section 34.3 - Reporting motor vehicle liability insurance notices (transactions)

Current through Register Vol. 46, No. 28, July 10, 2024
(a) An insurance
				  company or servicing agent shall comply with the following requirements when
				  reporting motor vehicle liability insurance notices:
(1) Initial load (LOD). A one time
				  notification of motor vehicle liability insurance coverage in the form of a
				  transfer of an insurance company's book of business for all insured vehicles
				  registered in New York State. An additional notification is permitted to
				  transfer an insurance company's book of business for composite rated vehicles
				  registered in New York State. The effective date provided with an initial load
				  transaction shall be the actual policy effective date reflective of the last
				  policy level activity, e.g., issuance, reinstatement or renewal.
(2) New business (NBS). A notification or
				  confirmation of motor vehicle liability insurance coverage. Notices shall be
				  submitted for the following business events: policy issuance (every vehicle
				  covered under the policy at the time of issuance); vehicle(s) added to an in
				  force policy; replacement vehicle(s) added to an in force policy; vehicle(s)
				  moved to another insurer within an insurance company group; renewal of a for
				  hire policy (all for hire vehicles only); and confirmation of insurance in
				  response to a DMV initiated mandatory verification (MVF) transaction.
Note: NBS notices shall be reprocessed (matching retried)
					 by DMV as described in section
					 34.9(d) 
					 of this Part.
(3)
				  Reinstatement (REI). A notification that motor liability insurance coverage has
				  been reinstated or restored. A notification to rescind an erroneous
				  cancellation (XLC) notice. The REI effective date is compared to the previously
				  submitted XLC cancellation effective date to determine if there is any a lapse
				  of coverage.
Note:A cancellation (except FH) shall be reported to DMV
					 within 30 days of the cancellation effective date but only after any insurance
					 company provided grace period for receipt of late payment has expired. It shall
					 not be an insurance company's or servicing agent's practice to report
					 cancellation notices without regard to any subsequent volume of reinstatement
					 notices. In other words, cancellation notices reported one week shall not
					 result in a high percentage of reinstatement notices reported the next week.
					 Such practice is not permitted since it will result in multiple unnecessary
					 letters to policyholder registrants. The number of reinstatement notices
					 submitted shall represent a small percentage of the number of cancellation
					 notices submitted.
(4)
				  Cancellation (XLC). A notification that motor vehicle liability insurance
				  coverage has been canceled, terminated or suspended, whether initiated by the
				  insurance company or insured. Notices shall be submitted for the following
				  business events: policy cancellation or non-renewal (every vehicle covered by
				  the policy at the time of cancellation or non-renewal); vehicle dropped without
				  replacement from an in force policy; liability insurance suspended on a vehicle
				  that remains on an in force policy; and cancellation response to a DMV
				  initiated negative verification (NVF) transaction.
(5) No insurance (NIS). A repudiation of
				  motor vehicle liability insurance coverage in response to a DMV initiated
				  mandatory verification (MVF) transaction. The insurance company is advising
				  that the paper proof of insurance accepted by DMV is invalid and/or fraudulent.
				  An insurance company or servicing agent shall exercise due diligence when
				  submitting a no insurance (NIS) notice to DMV in response to a DMV initiated
				  mandatory verification (MVF) traction. An insurance company or servicing agent
				  shall not submit a NIS notice to DMV if the vehicle is insured by said
				  insurance company.
(6) Resubmission
				  of notices. An insurance company or servicing agent shall resubmit, using the
				  same transaction code, a corrected LOD, NBS, REI, XLC or NIS notice for an
				  unmatched notice (edit error or unresolved no-hit exception) returned by DMV,
				  within the time frame specified by this Part, unless the original submission
				  was excluded from being reported to DMV as set forth in sections
				  34.1(d),
				  34.7
				  and
				  34.12  of
				  this Part.