HF 1323

as introduced - 87th Legislature (2011 - 2012) Posted on 03/29/2011 08:59am

A bill for an act
relating to insurance; providing for the establishment of an online motor vehicle
insurance verification system; appropriating money; amending Minnesota
Statutes 2010, section 169.09, subdivision 13; proposing coding for new law in
Minnesota Statutes, chapter 169.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 169.09, subdivision 13, is amended to read:

Subd. 13.

Reports confidential; evidence, fee, penalty, appropriation.

(a) All
reports and supplemental information required under this section must be for the use of the
commissioner of public safety and other appropriate state, federal, county, and municipal
governmental agencies for accident analysis purposes, except:

(1) the commissioner of public safety or any law enforcement agency shall, upon
written request of any individual involved in an accident or upon written request of the
representative of the individual's estate, surviving spouse, or one or more surviving next
of kin, or a trustee appointed under section 573.02, or other person injured in person,
property, or means of support, or who incurs other pecuniary loss by virtue of the accident,
disclose to the requester, the requester's legal counsel, or a representative of the requester's
insurer the report required under subdivision 8;

(2) the commissioner of public safety shall, upon written request, provide the driver
filing a report under subdivision 7 with a copy of the report filed by the driver;

(3) the commissioner of public safety may verify with insurance companies vehicle
insurance information to enforce sections 65B.48, 169.792, 169.793, deleted text begin 169.796, deleted text end and
169.797;

(4) the commissioner of public safety shall provide the commissioner of
transportation the information obtained for each traffic accident involving a commercial
motor vehicle, for purposes of administering commercial vehicle safety regulations; and

(5) the commissioner of public safety may give to the United States Department of
Transportation commercial vehicle accident information in connection with federal grant
programs relating to safety.

(b) Accident reports and data contained in the reports are not discoverable under any
provision of law or rule of court. No report shall be used as evidence in any trial, civil or
criminal, or any action for damages or criminal proceedings arising out of an accident.
However, the commissioner of public safety shall furnish, upon the demand of any person
who has or claims to have made a report or upon demand of any court, a certificate
showing that a specified accident report has or has not been made to the commissioner
solely to prove compliance or failure to comply with the requirements that the report be
made to the commissioner.

(c) Nothing in this subdivision prevents any individual who has made a report under
this section from providing information to any individuals involved in an accident or their
representatives or from testifying in any trial, civil or criminal, arising out of an accident,
as to facts within the individual's knowledge. It is intended by this subdivision to render
privileged the reports required, but it is not intended to prohibit proof of the facts to
which the reports relate.

(d) Disclosing any information contained in any accident report, except as provided
in this subdivision, section 13.82, subdivision 3 or 6, or other statutes, is a misdemeanor.

(e) The commissioner of public safety shall charge authorized persons as described
in paragraph (a) a $5 fee for a copy of an accident report. Ninety percent of the $5 fee
collected under this paragraph must be deposited in the special revenue fund and credited
to the driver services operating account established in section 299A.705 and ten percent
must be deposited in the general fund. The commissioner may also furnish an electronic
copy of the database of accident records, which must not contain personal or private data
on an individual, to private agencies as provided in paragraph (g), for not less than the cost
of preparing the copies on a bulk basis as provided in section 13.03, subdivision 3.

(f) The fees specified in paragraph (e) notwithstanding, the commissioner and law
enforcement agencies shall charge commercial users who request access to response or
incident data relating to accidents a fee not to exceed 50 cents per record. "Commercial
user" is a user who in one location requests access to data in more than five accident
reports per month, unless the user establishes that access is not for a commercial purpose.
Of the money collected by the commissioner under this paragraph, 90 percent must be
deposited in the special revenue fund and credited to the driver services operating account
established in section 299A.705 and ten percent must be deposited in the general fund.

(g) The fees in paragraphs (e) and (f) notwithstanding, the commissioner shall
provide an electronic copy of the accident records database to the public on a case-by-case
basis using the cost-recovery charges provided for under section 13.03, subdivision
3. The database provided must not contain personal or private data on an individual.
However, unless the accident records database includes the vehicle identification number,
the commissioner shall include the vehicle registration plate number if a private agency
certifies and agrees that the agency:

(1) is in the business of collecting accident and damage information on vehicles;

(2) will use the vehicle registration plate number only for identifying vehicles that
have been involved in accidents or damaged, to provide this information to persons
seeking access to a vehicle's history and not for identifying individuals or for any other
purpose; and

(3) will be subject to the penalties and remedies under sections 13.08 and 13.09.

Sec. 2.

new text begin [169.7962] ONLINE VERIFICATION SYSTEM.
new text end

new text begin Subdivision 1. new text end

new text begin Rulemaking. new text end

new text begin The department shall adopt by rule online verification
of evidence of insurance as required by this section, subject to subdivisions 2 to 15.
new text end

new text begin Subd. 2. new text end

new text begin Status. new text end

new text begin Unless otherwise described in this section, the online verification
of evidence of insurance system that is adopted by the department by rule is the sole and
exclusive system for reporting and verifying evidence of insurance.
new text end

new text begin Subd. 3. new text end

new text begin Operation. new text end

new text begin The verification system must be capable of sending requests
to insurers for verification of evidence of insurance via Web services established by the
insurers, through the Internet, World Wide Web, or a similar proprietary or common carrier
electronic system, in compliance with the specifications and standards of the Insurance
Industry Committee on Motor Vehicle Administration (IICMVA), with enhancements,
additions, and modification as required by the department but which do not conflict,
nullify, or add requirements that are inconsistent with the specifications and standards of
the IICMVA. The system must include appropriate provisions to secure its data against
unauthorized access and must maintain a historical record of all system requests and
responses for a period of at least six months from the date of the requests and responses.
new text end

new text begin The system must be used for verification of the evidence of mandatory liability
insurance coverage as prescribed by the laws of this state and must be accessible to
authorized personnel of the department, the courts, law enforcement personnel, and any
other entities authorized by the state as permitted by state or federal privacy laws, and it
must be interfaced, wherever appropriate, with existing state systems. The system must
include information that enables the department to make inquiries to insurers of evidence
of insurance that is consistent with insurance industry and IICMVA recommendations,
specifications, and standards by using multiple data elements for greater matching
accuracy, specifically: Insurer National Association of Insurance Commissioners company
code, vehicle identification number, policy number, or as described in the specifications
and standards of the IICMVA.
new text end

new text begin At the discretion of the department, rules may offer insurers who write fewer
policies an alternative method for reporting insurance policy data instead of establishing
Web services.
new text end

new text begin Subd. 4. new text end

new text begin Response time. new text end

new text begin Consistent with the time periods prescribed by the
IICMVA's specifications and standards, the vendor is responsible for having its verification
system respond to each requestor within a time period as established by the state agencies.
An insurer's system must respond within the time period prescribed by the IICMVA's
specifications and standards. The system must be available to accommodate the time
period established.
new text end

new text begin Subd. 5. new text end

new text begin Department's powers. new text end

new text begin When the department has reason to believe a motor
vehicle has been or is currently being operated without insurance, the owner's vehicle
registration may be suspended or revoked. The registration may not be reinstated or a new
registration may not be issued unless evidence of insurance has been provided to the
department and any applicable reinstatement fees as prescribed by the department have
been paid. These fees are in addition to any other applicable fines, penalties, and fees.
new text end

new text begin Subd. 6. new text end

new text begin Consultation. new text end

new text begin The department shall consult with representatives of the
insurance industry and private service providers in determining the objectives, details, and
deadlines related to the system.
new text end

new text begin Subd. 7. new text end

new text begin Guide. new text end

new text begin The department shall publish for comment and then issue a detailed
guide of its online verification system.
new text end

new text begin Subd. 8. new text end

new text begin Contacts. new text end

new text begin The department and its private service provider, if any, must
each maintain a contact person for insurers during the establishment, implementation, and
operation of the system.
new text end

new text begin Subd. 9. new text end

new text begin Verification and related administrative provisions. new text end

new text begin If the department
has reason to believe a vehicle owner does not have valid vehicle insurance, it may also
request an insurer to verify the existence of an automobile liability policy in a form
approved by the department not later than ten days from the date the request is made. In
addition, insurers shall cooperate with the department in establishing and maintaining the
verification system provided by this section, and shall provide access to motor vehicle
insurance policy status information as provided in the rules established by the department.
new text end

new text begin Subd. 10. new text end

new text begin Compliance. new text end

new text begin Every property and casualty insurance company that is
licensed to issue motor vehicle insurance policies or is authorized to do business in
Minnesota shall comply with this section for verification of evidence of vehicle insurance
for every vehicle insured by that company in Minnesota as required by the rules of the
department.
new text end

new text begin Subd. 11. new text end

new text begin Record keeping. new text end

new text begin Insurers shall maintain a historical record of all system
requests and responses for a minimum of six months from the date of the requests and
responses.
new text end

new text begin Subd. 12. new text end

new text begin Immunity. new text end

new text begin Insurers are immune from civil and administrative liability for
good faith efforts to comply with the terms of this section.
new text end

new text begin Subd. 13. new text end

new text begin Nonapplication. new text end

new text begin (a) For the purposes of this section, commercial
auto coverage is defined as any coverage provided to an insured, regardless of number
of vehicles or entity covered, under a commercial coverage form and rated from a
commercial manual approved by the Department of Commerce. This section does not
apply to vehicles insured under commercial auto coverage; however, insurers of such
vehicles may participate on a voluntary basis.
new text end

new text begin (b) Insurers shall provide commercial automobile customers with evidence reflecting
that the vehicle is insured under a commercial auto policy. Sufficient evidence is an
insurance identification card clearly marked in the title with the identifier "Commercial
Auto Insurance Identification Card."
new text end

new text begin Subd. 14. new text end

new text begin Authority to contract. new text end

new text begin Nothing in this legislation prohibits the
department from contracting with a private service provider or providers who have
successfully implemented similar systems in other states to assist in establishing and
maintaining the verification system.
new text end

new text begin Subd. 15. new text end

new text begin Fees; appropriation. new text end

new text begin The department may impose a fee of $....... on each
new and renewal vehicle registration. All fees collected must be deposited in a separate
account and are appropriated to the commissioner for the purpose of the development,
implementation, maintenance, and enhancement of the online evidence of insurance
verification system.
new text end

Sec. 3. new text begin REPORT ON EFFECTIVENESS.
new text end

new text begin No more than six months after the online insurance verification system has been in
operation for two years, the department, after consultation with law enforcement, other
state agencies, and the insurers, shall report to the legislature as to the benefits and the
costs of the program for the department, law enforcement, other state agencies, insurers,
and the public, and the effectiveness of the program in reducing the number of uninsured
motor vehicles. The department shall comply with the requirements of Minnesota Statutes,
sections 3.195 and 3.197 in reporting to the legislature.
new text end

Sec. 4. new text begin EFFECTIVE DATE; APPLICATION; TESTING AND PILOT PERIOD.
new text end

new text begin Sections 1 to 3 are effective on August 1, 2011. The verification system must be
installed and fully operational by August 1, 2012, following an appropriate testing and
pilot period of at least nine months. Until successful completion of the testing and pilot
period, no enforcement action may be taken based on the system.
new text end