Authorizes the production of proof of insurance by the use of electronic transmission to portable electronic devices

BILL NUMBER:S2698

Title of bill

An act to amend the vehicle and traffic law, in relation to authorizing the production of proof of insurance by the use of electronic transmission to portable electronic devices

Purpose

The bill amends the vehicle and traffic law to allow motorists an option to use a cell phone or other mobile electronic devise to provide proof of insurance coverage instead of having to present a printed card.

Summary of provisions

Section 1 of the bill amends paragraph (b) of subdivision 1 of Section 312 of the vehicle and traffic law by adding a new subparagraph (2) states that an electronic version of the owner's insurance card may be transmitted to an owner's or operator's smart phone or other electronic device to be used as proof of insurance provided as follows:

(A) the proof of insurance is transmitted directly from the owner's insurance company or from the owner's licensed insurance broker or agent to the operator's smart phone or other electronic device; and

(B) the electronic transmission of the insurance card contains all required information.

This section also amends paragraph (b) of subdivision 1 of Section 312 of the vehicle and traffic law by adding a new subparagraph (3) providing that an officer who views the transmission of an electronic version of the owner's insurance card on a device shall be prohibited from viewing any other information or content on the device. Finally, subparagraph (4) would be added to provide that any person who presents proof of financial security by means of transmission of an electronic version the owner's insurance card shall assume liability for any damage to the electronic device.

Section 2 of the bill is the effective date.

Justification

Current law states that motorists must show written proof of insurance. However many insurance companies offer apps for cell phones or tablets that display the insurance information. People may find it more convenient to have the information accessible electronically rather than having a paper document which can easily be lost or misplaced. The proposed legislation would allow, but not require insurers to offer proof of insurance in an electronic format. The legislation will not only assist motorists in avoiding a ticket, but it will also help to stop people from having to take time off work in order to go to court to defend themselves when they were simply unable to find a current insurance document in their car. This will save drivers, police and courts time, money and resources.

Legislative history

06/20/13 PASSED SENATE 06/17/14 PASSED SENATE

Fiscal implications

To be determined

Effective date

This act shall take effect on the ninetieth day after it shall have become law.