Florida Senate - 2020                             CS for SB 1606
       By the Committee on Banking and Insurance; and Senator Perry
       597-03126-20                                          20201606c1
    1                        A bill to be entitled                      
    2         An act relating to insurance; amending s. 316.646,
    3         F.S.; requiring law enforcement officers, after a
    4         certain timeframe and under certain circumstances, to
    5         access information from the motor vehicle insurance
    6         online verification system for certain purposes;
    7         amending s. 320.02, F.S.; authorizing the use of the
    8         online verification of insurance for motor vehicle
    9         registration purposes; creating s. 324.252, F.S.;
   10         requiring the Department of Highway Safety and Motor
   11         Vehicles to establish an online verification system
   12         for motor vehicle insurance; providing system
   13         requirements; providing powers and duties of the
   14         department; providing requirements for insurers and
   15         law enforcement officers; providing immunity from
   16         civil liability to insurers for certain good faith
   17         efforts; providing applicability; defining the term
   18         “commercial motor vehicle coverage”; authorizing the
   19         department to adopt rules; creating s. 324.255, F.S.;
   20         creating the Motor Vehicle Insurance Online
   21         Verification Task Force within the department;
   22         providing duties of the task force; specifying the
   23         composition of the task force; providing meeting
   24         requirements; requiring the department to provide
   25         certain support to the task force; providing that task
   26         force members shall serve without compensation and are
   27         not entitled to certain reimbursement; providing the
   28         date by which the task force must complete its work
   29         and submit its final report to the department and the
   30         Legislature; providing for expiration of the task
   31         force; providing contingent effect; providing an
   32         effective date.
   34  Be It Enacted by the Legislature of the State of Florida:
   36         Section 1. Present subsection (5) of section 316.646,
   37  Florida Statutes, is redesignated as subsection (6), and a new
   38  subsection (5) is added to that section, to read:
   39         316.646 Security required; proof of security and display
   40  thereof.—
   41         (5)Eighteen months after implementation of the motor
   42  vehicle insurance online verification system established in s.
   43  324.252, a law enforcement officer, during a traffic stop or
   44  crash investigation, shall access information from the online
   45  verification system to establish compliance with this chapter
   46  and chapter 324.
   47         Section 2. Paragraph (f) is added to subsection (5) of
   48  section 320.02, Florida Statutes, to read:
   49         320.02 Registration required; application for registration;
   50  forms.—
   51         (5)
   52         (f)Upon implementation of the motor vehicle insurance
   53  online verification system established in s. 324.252, the online
   54  verification may be used in lieu of the verification procedures
   55  in this subsection.
   56         Section 3. Section 324.252, Florida Statutes, is created to
   57  read:
   58         324.252Insurance online verification system.—The
   59  department shall establish an online verification system for
   60  motor vehicle insurance. The goal of the system is to identify
   61  uninsured motorists and aid the department in the enforcement of
   62  the financial responsibility law.
   63         (1)The online verification system must:
   64         (a)Be accessible through electronic means for use by any
   65  government agency, including any court or law enforcement
   66  agency, in carrying out its functions; by any private person or
   67  entity acting on behalf of a federal, state, or local agency in
   68  carrying out its functions; by any other entity authorized by
   69  the department; and by any insurer authorized by the Office of
   70  Insurance Regulation to provide motor vehicle insurance. The
   71  department may also establish a web portal or other mechanism
   72  that provides the general public with the ability to confirm
   73  whether a particular motor vehicle is currently insured.
   74         (b)In real time, send requests to insurers for
   75  verification of evidence of insurance for motor vehicles
   76  registered in this state, and receive confirmation in real time
   77  from insurers via electronic means consistent with the
   78  specifications and standards of the Insurance Industry Committee
   79  on Motor Vehicle Administration (IICMVA), with enhancements,
   80  additions, and modifications as required by the department.
   81  However, the enhancements, additions, and modifications may not
   82  conflict with, nullify, or add requirements that are materially
   83  inconsistent with the specifications or standards of the IICMVA.
   84         (c)Be operational by July 1, 2023. The Motor Vehicle
   85  Insurance Online Verification Task Force established in s.
   86  324.255 must conduct a pilot program for at least 9 months to
   87  test the system before statewide use. The system may not be used
   88  in any enforcement action until successful completion of the
   89  pilot program.
   90         (d)Be available 24 hours a day, except as provided in
   91  paragraph (2)(a), to verify the insurance status of any vehicle
   92  registered in this state through the insurer’s National
   93  Association of Insurance Commissioners (NAIC) company code or
   94  Florida company code, in combination with other identifiers,
   95  including vehicle identification number, car make, car model,
   96  year, registered owner’s name, policy number, levels or types of
   97  coverage, or other characteristics or markers as specified by
   98  the Motor Vehicle Insurance Online Verification Task Force.
   99         (e)Include appropriate safeguards and controls to prevent
  100  misuse or unauthorized access.
  101         (f)Include a disaster recovery plan to ensure service
  102  continuity in the event of a disaster.
  103         (g)Include information that enables the department to make
  104  inquiries of evidence of insurance by using multiple data
  105  elements for greater matching accuracy, specifically the
  106  insurer’s NAIC company code, in combination with other
  107  identifiers, such as vehicle identification number, policy
  108  number, or other characteristics or markers as specified by the
  109  Motor Vehicle Insurance Online Verification Task Force or the
  110  department.
  111         (h)Include a self-reporting mechanism for insurers with
  112  fewer than 2,000 vehicles insured within this state or for
  113  individual entities that are self-insured.
  114         (2)The department has the following powers and duties:
  115         (a)Upon an insurer’s advance notice to the department, the
  116  department shall allow online services established by the
  117  insurer to have reasonable downtime for system maintenance and
  118  other work, as needed. An insurer is not subject to
  119  administrative penalties or disciplinary actions when its online
  120  services are not available under such circumstances or when an
  121  outage is unplanned by the insurer and is reasonably outside its
  122  control.
  123         (b)Upon recommendation of the Motor Vehicle Insurance
  124  Online Verification Task Force, the department may develop and
  125  operate its own system or competitively procure a private vendor
  126  that has personnel with extensive operational and management
  127  experience in the development, deployment, and operation of
  128  insurance online verification systems.
  129         (c)The department and its private vendor, if any, shall
  130  each maintain a contact person for the insurers during the
  131  establishment, implementation, and operation of the system.
  132         (d)The department may enter into agreements governing the
  133  use of the system with any public or private entity accessing
  134  the system to verify insurance coverage.
  135         (e)The department shall maintain a historical record of
  136  the system data for 6 months after the date of any verification
  137  request and response.
  138         (3)An insurance company authorized to issue insurance
  139  policies for motor vehicles registered in this state:
  140         (a)Shall comply with the verification requirements of
  141  motor vehicle insurance for every motor vehicle insured by that
  142  company in this state.
  143         (b)Shall maintain policyholder records in order to confirm
  144  insurance coverage for 3 years after the date of any
  145  verification request and response.
  146         (c)Shall cooperate with the department in establishing,
  147  implementing, and maintaining the system.
  148         (d)Is immune from civil liability for good faith efforts
  149  to comply with this section. An online verification request or
  150  response may not be used as the basis of a civil action against
  151  an insurer.
  152         (4)A law enforcement officer, during a traffic stop or
  153  crash investigation, shall query information from the online
  154  verification system to establish compliance with this chapter.
  155         (5)This section does not apply to vehicles insured under
  156  commercial motor vehicle coverage. As used in this subsection,
  157  the term “commercial motor vehicle coverage” means any coverage
  158  provided to an insured under a commercial coverage form and
  159  rated from a commercial manual approved by the Office of
  160  Insurance Regulation. However, insurers of such vehicles may
  161  participate in the online verification system on a voluntary
  162  basis.
  163         (6)The department may adopt rules to administer this
  164  section.
  165         Section 4. Section 324.255, Florida Statutes, is created to
  166  read:
  167         324.255Motor Vehicle Insurance Online Verification Task
  168  Force.—There is created the Motor Vehicle Insurance Online
  169  Verification Task Force within the department.
  170         (1)The task force shall:
  171         (a)Facilitate the implementation of the motor vehicle
  172  insurance online verification system established in s. 324.252.
  173         (b)Assist in the development of a detailed guide for
  174  insurers by providing data fields and other information
  175  necessary for compliance with the online verification system.
  176         (c)Coordinate a pilot program and conduct the program for
  177  at least 9 months to test the online verification system and
  178  identify necessary changes to be implemented before statewide
  179  use.
  180         (d)Issue recommendations based on periodic reviews of the
  181  online verification system.
  182         (2)The task force shall consist of 10 voting members and 1
  183  nonvoting member.
  184         (a)By July 31 of the year this section becomes effective,
  185  the 10 voting members shall be appointed in the following
  186  manner:
  187         1.Three representatives of the department, representing
  188  the Florida Highway Patrol, the Division of Motorist Services,
  189  and the Information Systems Administration, appointed by the
  190  executive director of the department.
  191         2.One representative of the Office of Insurance
  192  Regulation, appointed by the Commissioner of Insurance
  193  Regulation.
  194         3.Three representatives of the motor vehicle insurance
  195  industry, appointed by the Chief Financial Officer as follows:
  196         a.One member must represent the motor vehicle insurer with
  197  the largest national market share as of December 31 of the year
  198  before the appointment.
  199         b.One member must represent the motor vehicle insurer with
  200  the largest Florida market share as of December 31 of the year
  201  before the appointment.
  202         c.One member must be selected from a list of
  203  representatives recommended by the Insurance Industry Committee
  204  on Motor Vehicle Administration.
  205         4.One representative of the Department of Financial
  206  Services, appointed by the Chief Financial Officer.
  207         5.One representative of the Division of State Technology,
  208  appointed by the Secretary of the Department of Management
  209  Services.
  210         6.One member who must be a member of local law
  211  enforcement, appointed by the executive director of the
  212  department.
  213         (b)The executive director of the department, who shall be
  214  a nonvoting member, shall serve as chair of the task force.
  215         (3)By September 30 of the year this section becomes
  216  effective, the task force shall meet to establish procedures for
  217  the conduct of its business, and the voting members shall elect
  218  a vice chair at that meeting. The task force shall meet at the
  219  call of the chair, who shall prepare the agenda for each meeting
  220  with the consent of the task force. A majority of the voting
  221  members of the task force constitutes a quorum, and a quorum is
  222  necessary for the purpose of voting on any action or
  223  recommendation of the task force. All meetings shall be held in
  224  Tallahassee.
  225         (4)The department shall provide the task force members
  226  with administrative and technical support. Task force members
  227  shall serve without compensation and are not entitled to
  228  reimbursement for per diem or travel expenses.
  229         (5)By July 1 of the third year after this section becomes
  230  effective, the task force shall complete its work and submit its
  231  final report evaluating the online verification system’s
  232  effectiveness and making recommendations for system enhancements
  233  to the department, the President of the Senate, and the Speaker
  234  of the House of Representatives. Upon submission of the report,
  235  the task force shall expire.
  236         Section 5. The amendments made by this act to ss. 316.646
  237  and 320.02, Florida Statutes, and the creation of ss. 324.252
  238  and 324.255, Florida Statutes, by this act shall take effect
  239  upon a specific appropriation.
  240         Section 6. This act shall take effect July 1, 2020.