Provides for the issuance and production of proof of motor vehicle financial security in electronic form on the owner's portable electronic device

1 Co-sponsor

• William J. Larkin Jr.

BILL NUMBER:S3895

Title of bill

An act to amend the vehicle and traffic law, in relation to electronic proof of financial security

Purpose

Provides for the insurance and production of proof of motor vehicle financial security in electronic form on the owner's portable electronic device.

Summary of provisions

Section One - amends paragraph b of subdivision one of section 312 of the vehicle and traffic law by stating subject to the rules of the commissioner, pursuant to paragraph c of subdivision two of section three hundred thirteen of this article, such proof of financial security shall be produced in written form or in electronic form on the owner's portable electronic device, as defined in paragraph (a) of subdivision two of section twelve hundred twenty-five--d of this chapter. Insurers shall retain the right to determine whether to offer to their policyholders the ability to produce proof of financial security in electronic form.

Section Two - amends paragraph c of subdivision 2 of section 313 of the vehicle and traffic law by stating the commissioner shall provide for the acceptance of proof of insurance in electronic form on a motor vehicle owner's portable electronic device, as defined in paragraph (a) of subdivision two of section twelve hundred twenty-five-d of this chapter.

Section Three - this act shall take effect on the one hundredth eightieth day after it shall have become a law. Provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implantation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.

Justification

This act permits automobile insurers to provide proof of insurance in an electronic format that may be displayed on a mobile electronic device. With technology becoming more common in everyday use this bill allows for easy access by both driver and officer to view legal proof of insurance. This is a simple process, as opposed to searching around the vehicle for an up to date insurance card that may or may not be present. To provide privacy to the driver, the act requires that an officer only view the evidence of financial responsibility and would prohibit him/her from viewing any other content on the mobile electronic device. The driver is to assume all liability for any damage to the electronic mobile device.

This act eliminates scams such as production and use of fake insurance cards. A fake card can be detected in only a few seconds, using real time verification systems that allow officers to check for insurance coverage against the car's license plate. Several insurers already associated with this act will email copies to officers and consumers.

This act will not negate the current law, whereby the driver may chooses to keep a paper copy of their insurance inside their vehicle and provide that as legal proof. This act seeks to bring uniformity to the process of proving financial responsibility and generate that a motorist may present to law enforcement, and an auto insurance company may provide, an electronic, version of the proof of insurance.

Legislative history

2013-2014: S.5969-A passed Senate / A.8227-A referred to transportation.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the one hundred eightieth day, after it shall have become a law. Provided, however, that the effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implantation of this act on its effective date. are authorized and directed to be made and completed on or before such effective date.