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. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 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: 58 324.252 Insurance 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: 167 324.255 Motor 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.