Establishes an online insurance verification system for motor vehicle insurance

• Democratic30
• Republican3

◆ The sponsor's argument

Why Jamaal Bailey says this is needed

New York's current system for auto insurance verification relies on old technology and manual processing for both the DMV and insurance carri- ers. This results in an increased likelihood of a driver erroneously being identified as uninsured and can result in being unfairly accused, ticketed and possibly arrested for failure to prove insurance coverage. Motorists who are charged with driving without insurance can face a serious misdemeanor charge, have their car impounded, and lose their license which may result in thousands of dollars in legal fees and court appearances. The "online verification of automobile liability insurance act" would create an Online Verification system (OLV). This system allows for real- time verification of automobile insurance and reduces the likelihood of drivers being falsely accused of driving without insurance coverage. Unlike the current system the OLV system verifies directly against the insurance companies records within seconds. In addition, this system can be used by law enforcement during roadside stops and accident investi- gations, and within the court system. Eighteen states, including Cali- fornia and Illinois, have adopted a version of an OLV system. The "online verification of automobile liability insurance act" would benefit all New York motorists. It would also address an important social equity need - people of color and young drivers who are more likely to have insurance verified by law enforcement at a roadside stop. By using current insurance company data, the OLV system protects insured individuals from being misidentified as uninsured, reducing the personal and economic impacts. Importantly, an OLV system also protects drivers' privacy by limiting access to legally authorized agencies and using the most advanced methods of data encryption.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.