What's happening
This bill allows drivers in New York to show electronic proof of auto insurance on a portable device when requested.
Why it matters
Increases convenience for drivers. by allowing them to show proof of insurance on their phone or other portable electronic device, reducing the need to carry paper documents and making compliance easier, especially if documents are lost or misplaced.
Gives insurance companies flexibility. by letting them choose whether to offer electronic proof of insurance, so not all insurers are required to provide this option—potentially influencing which insurer a tech-savvy consumer might choose.
Mandates regulatory updates. from the Department of Motor Vehicles to accommodate electronic verification, which could modernize law enforcement and court procedures when handling insurance-related traffic stops or violations.
May improve efficiency and reduce fraud. since electronic documents can be more easily updated, validated, or revoked in real time, possibly making it harder to use outdated or counterfeit insurance cards.
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Who cares
Motor vehicle owners
The bill would let owners produce proof of insurance on their portable electronic devices if their insurers offer that option.
Auto insurers
Insurers would retain the choice of whether to offer policyholders electronic proof of insurance.
Department of Motor Vehicles
The commissioner would have to provide for acceptance of electronic proof of insurance on owners’ portable electronic devices.
Police officers, peace officers and motor vehicle inspectors
The bill would allow owners to respond to their demands for proof of insurance with electronic proof, subject to the commissioner’s rules.
Headline styles
Show Insurance Proof on Phone
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to transportation
- Returned to senate
- Died in assembly
- Referred to transportation
- Delivered to assembly
- Passed senateVote 60–0
- Ordered to third reading cal.1768
- Committee discharged and committed to rules
- Referred to transportation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Digital Car Insurance Proof
In Assembly Committee · Transportation · Sponsor Pamela J. Hunter
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
181
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sens. MARCHIONE, LARKIN -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to electronic proof of financial security
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 1 of section 312 of the vehicle and traffic law, as amended by chapter 557 of the laws of 1994, is amended to read as follows:
(b) The owner of such motor vehicle shall maintain proof of financial security continuously throughout the registration period and his or her failure to produce proof of financial security when requested to do so upon demand of a magistrate, motor vehicle inspector, peace officer, acting pursuant to his or her special duties, or police officer, while such vehicle is being operated upon the public highway, shall be presumptive evidence of operating a motor vehicle without proof of financial security. 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. Upon the production of proof of financial security such presumption is removed. Production of proof of financial security may be made by mailing such proof to the court having jurisdiction in the matter, and any necessary response by such court or acknowledgement of the production of such proof may also be made by mail. When insurance with respect to any motor vehicle, other than a motorcycle, is terminated the owner shall surren-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04043-01-7
S. 181 2
der forthwith his or her registration certificate and number plates of the vehicle to the commissioner unless proof of financial security otherwise is maintained in compliance with this article.
§ 2. Paragraph (c) of subdivision 2 of section 313 of the vehicle and traffic law, as amended by chapter 678 of the laws of 1997, is amended to read as follows:
(c) The commissioner shall promulgate regulations establishing procedures for issuance of proof of insurance and for reporting by insurers of notices of termination and policy issuance, either electronically or by paper copy, at the option of the department. Such reporting shall be required for every cancellation or termination which is effective on or after July first, nineteen hundred eighty-four and for every policy issuance which is effective on or after January first, two thousand; provided, however, that should the commissioner find, after testing of reporting procedures, that it would be feasible to require reporting for policy cancellations, terminations or issuances effective on an earlier date, he or she may by regulation so require reporting on such earlier date, but in no event shall reporting be required for cancellations or terminations effective prior to February first, nineteen hundred eighty-four nor for policy issuances effective prior to September first, nineteen hundred ninety-nine. 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. Insurers shall cooperate fully with the commissioner in any such testing of reporting procedures.
§ 3. This act shall take effect on the one hundred 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 implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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.
Read the full memo (608 words)
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
2015-2016: Referred to Transportation 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.