SB 754 — Allowing car dealerships to utilize search engines to determine if buyers have valid motor vehicle insurance

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee Substitute for Senate Bill 754 ByBYSENATORSBARRETT SenatorsAPLYMALE Barrett[Originating andin Plymalethe [IntroducedCommittee Februaryon 12,Transportation 2024;and Infrastructure;

referredreported toFebruary the20, Committee2024] onCS Transportationfor and Infrastructure] Intr SB 2024R3803S754 2024R3011H A BILL to amend and reenact §17D-2A-6a of the Code of West Virginia, 1931, as amended, relating to requiringallowing new and used motor vehicle dealerships in this state to utilize a search engine to determine if prospective buyers of vehicles have valid motor vehicle insurance.

(a) The commissioner may make a determination that the required security on a motor vehicle is not in effect based upon crash reports required under the provisions of article four, chapter seventeen-c of this code, reports or citations from law-enforcement agencies, citations or abstracts of conviction from courtscourts, or from information from an on-line online electronic insurance verification program.

(b) The commissioner is authorized to develop and implement an electronic insurance verification program based upon a model established by the Insurance Industry Committee on Motor Vehicle Administration (IICMVA) to electronically verify evidence of insurance coverage with insurance companies.

(c) The commissioner may contract with a thirdthird-party party vendor to act as his or her agent to develop the program, conduct the electronic verification process with insurance companiescompanies, and to operate the program.

(d) If developed and implemented by the commissioner, the on-line online insurance verification program shall:

(1) Be able to verify, on an on-demand basis minus reasonable down time for system maintenance as agreed upon by the division or its agent and the insurance carrier, the liability insurance status as of the time of the inquiry or at other times not exceeding six months prior unless otherwise agreed upon by the division or its agent and the insurance carrier or via other similar electronic system that is consistent with insurance industry and InsuranceIICMVA Industry Committee on Motor Vehicle Administration (IICMVA) recommendations and the specifications Intr SB 2024R3803S 2024R3011H and standards of the IICMVA model;

CS for SB 754 (2) Be able to make insurance verification inquiries to insurers by using multiple data elements for greater matching accuracy including:

National Association of Insurance Commissioner's (NAIC) code specific to each licensed insurance company, vehicle identification numbersnumbers, and policy number or other data elements as otherwise agreed to by the division or its agent and the insurer.insurer;

(3) Provide sufficient measures for the security and integrity of data including a requirement that the information obtained through the operation of the program be only used only by for the sole use of the Division of Motor Vehicles or its agent, law enforcementenforcement, new and used motor vehicle dealerships, and the judiciary to effectuate the provisions of this article;

(e) If the commissioner develops and implements an on-line online insurance verification program, each insurer shall:

(1) Cooperate with the Division of Motor Vehicles,Vehicles or its agent in establishing and operating the program;

(2) Maintain the data necessary to verify the existence of mandatory liability insurance coverage provided to its customers pursuant to the required time period established for the on-lineon- line online insurance verification program;

(3) Maintain the internet web service, pursuant to the requirements established under the online insurance verification program, through which online insurance verification can take place that includes the ability to respond to authorized inquiries on whether the vehicle is insured or the policy in effect on the requested date through the insurer's national insurance commissioners association NAIC code, vehicle identification number, insurance policy numbernumber, or other data key or keys as otherwise agreed to by the division or its agent and the insurer;

(4) Provide security consistent with accepted insurance industry and United States motor Intr SB 2024R3803S 2024R3011H vehicle agency standards pertinent to the transmission of personal data;

CS for SB 754 (5) Be immune from civil and administrative liability for good faith efforts to comply with the terms of the verification program;

Nothing prohibits an insurer from using the services of a thirdthird-party party vendor for facilitating the insurance verification program required by this section.

(f) If the commissioner develops and implements an on-line online insurance verification program, the Division of Motor Vehicles or its agentagent, as applicableapplicable, shall:

(1) Consult and cooperate with insurers in establishing and operating the on-line online insurance verification system;

(2) Designate and maintain a contact person for insurers during the establishment and implementation of the on-line online insurance verification system;

(3) Conduct a pilot project to test the insurance verification system no less than eighteen18 months prior to final implementation;

Data secured via the reporting system by either the division or its agent may not be shared by any person who accesses the verification system with any party other than those permitted by state or federal privacy laws;

and (7) Provide alternative methods of reporting for small insurers writing less than 500 non- commercial motor vehicle policies in the state as determined by the Division of Motor Vehicles or Intr SB 2024R3803S 2024R3011H its agent;

(g)and AnyCS informationfor obtainedSB by754 the(8) divisionAllow oraccess itsto agent under the provisionsonline of an electronic insurance systemverification issystem, forto thedetermine soleif usea ofprospective thepurchaser Divisionhas ofvalid Motormotor Vehiclesvehicle orinsurance, its agent, law enforcement and the judiciary to effectuatenew the provisions of this article and isused exemptmotor fromvehicle disclosuredealerships under the provisions of article one, chapter twenty-nine-b and may not be considered a public record as defined in section two, article one, chapter twenty-nine-b of this code.state.

(h)(g) NotAny moreinformation thanobtained twoby yearsthe afterdivision or its agent under the establishmentprovisions of an on-lineelectronic insurance verificationsystem program,is for the Divisionsole use of Motorthe Vehicles,Division afterof consultationMotor withVehicles insurers,or shallits reportagent, tolaw theenforcement, Legislaturenew asand toused themotor costsvehicle ofdealerships, and the programjudiciary incurredto byeffectuate the division,provisions insurersof andthis thearticle public and theis effectivenessexempt offrom thedisclosure programunder in reducing the numberprovisions of uninsured§29B-1-1 motoret vehicles.seq.

(i)of The insurance database set forth in this sectioncode and may not be utilizedconsidered bya newpublic andrecord usedas motordefined vehiclein dealerships§29B-1-2 inof this statecode. to determine if a prospective purchaser has valid motor vehicle insurance.

NOTE:(h) Not more than two years after the establishment of an on-line online insurance verification program, the Division of Motor Vehicles, after consultation with insurers, shall report to the Legislature as to the costs of the program incurred by the division, insurers, and the public and the effectiveness of the program in reducing the number of uninsured motor vehicles.

(i) The purposeonline ofinsurance thisverification billsystem ismay tobe permitaccessed by new and used motor vehicle dealerships in this state toonly utilize a search engine to determineverify if buyersa purchaser of vehiclesa havevehicle has valid motor vehicle liability insurance.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.