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General Assembly Raised Bill No. 7171
January Session, 2019
LCO No. 4280
Referred to Committee on INSURANCE AND REAL
ESTATE
Introduced by:
(INS)
AN ACT CONCERNING TH E ONLINE INSURANCE VERIFICATION
SYSTEM AND NOTICES R EGARDING PRIVATE PAS SENGER MOTOR
VEHICLE LIABILITY INSURANCE POLICIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsections (b) and (c) of section 14-112a of the general 1
statutes are repealed and the following is substituted in lieu thereof 2
(Effective October 1, 2019): 3
(b) The department shall establish the Online Insurance Verification 4
System for the purposes of (1) verifying, in real time, that a motor 5
vehicle owner or operator has procured and maintained the security 6
coverage required pursuant to sections 14-112 and 38a-371, (2) 7
providing the commissioner and insurers with an effective method for 8
complying with this chapter and chapters 248 and 700, and (3) 9
reducing the number of uninsured motor vehicles on the highways of 10
the state. The system shall be available, at all times and in the manner 11
prescribed by the department, to allow state and local law enforcement 12
agencies and any government agency authorized for system access by 13
the commissioner to verify the security coverage of any motor vehicle 14 Raised Bill No. 7171
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in real time. 15
(c) (1) The system shall include (A) the owner and vehicle 16
information for all active registrations, provided by the department, 17
and (B) a record of each motor vehicle insurance policy in effect, 18
provided by each insurer in accordance with subdivision (2) of this 19
subsection. 20
(2) Each insurer shall, [each month on a date specified by the 21
commissioner] in real time, submit to the department a record of each 22
motor vehicle insurance policy in effect for vehicles registered or 23
garaged in the state. [as of the date of such submission.] Each insurer 24
that issues commercial fleet policies may satisfy this requirement by 25
providing the fleet policy number that covers the vehicles of its 26
insured. The record provided by an insurer shall be in a format and 27
contain the data as specified by the department. Such record shall be 28
provided by electronic means or by another form approved by the 29
department. [An insurer may submit more frequent reports than once 30
monthly, if it so chooses.] 31
(3) With the information provided pursuant to this subsection, the 32
department shall, [at least monthly] in real time: (A) Update the 33
database with the records provided by insurers pursuant to section 34
38a-343a, as amended by this act, and subdivision (2) of this 35
subsection; (B) match the department information of owner and 36
vehicle information for all active registrations with the records 37
submitted by insurers; and (C) compare all current motor vehicle 38
registrations against the records submitted by insurers. 39
Sec. 2. Section 38a-343a of the general statutes is repealed and the 40
following is substituted in lieu thereof (Effective October 1, 2019): 41
(a) (1) The Commissioner of Motor Vehicles may require each 42
insurer that issues private passenger motor vehicle liability insurance 43
policies in this state to notify said commissioner, [monthly, on a date 44
specified by said commissioner] in real time, of [the cancellation or 45 Raised Bill No. 7171
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issuance and addition] all additions, cancellations and issuances by the 46
insurer of [all] such policies. [that occurred during the preceding 47
month. Such] Each notice shall include the name of the named insured 48
in the policy that is the subject of such notice, the policy number of 49
such policy, the vehicle identification number of each automobile 50
covered by [the] such policy and the effective date of [the] such 51
policy's [cancellation or issuance or] addition, cancellation or issuance. 52
Said commissioner shall specify an acceptable method of notification. 53
The method of notification specified may include computer tapes or 54
electronic transmission. 55
(2) Said commissioner may require each insurer that issues private 56
passenger motor vehicle liability insurance policies in this state to 57
provide, [monthly, on a date specified by said commissioner] in real 58
time, the policy information required for the purposes of the Online 59
Insurance Verification System, as provided in section 14-112a, as 60
amended by this act. 61
(3) The failure of an insurer to comply with the requirements of this 62
section shall not affect the cancellation or issuance of any policy. 63
(b) The Commissioner of Motor Vehicles shall receive or accept all 64
notices of policy addition, cancellation or issuance [or addition or] and 65
all policy information from insurers, as required pursuant to 66
subsection (a) of this section. Said commissioner shall review and 67
analyze the [cancellation or issuance and addition] addition, 68
cancellation and issuance data [or] and policy information submitted, 69
together with such other information as said commissioner may obtain 70
from the insurers, from the records of the Department of Motor 71
Vehicles, or from any other public or private agency or firm in 72
possession of relevant information, for the purpose of determining 73
whether any registered owner identified in any such notice has failed 74
to continuously maintain insurance coverage in violation of sections 75
14-12c and 38a-371. In conducting such an inquiry to determine 76
insured status, said commissioner may contact registered vehicle 77
owners by mail and require that such mail inquiries be answered in 78 Raised Bill No. 7171
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not less than thirty days, in a satisfactory manner containing such 79
information and verification of insurance coverage as said 80
commissioner deems necessary and acceptable. 81
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2019 14-112a(b) and (c)
Sec. 2 October 1, 2019 38a-343a
INS Joint Favorable