Section 1 eliminates a section related to verification of insurance coverage from a statute allowing the Commissioner of Public Safety to verify certain information with insurance companies.
Section 2, subdivision 1, gives the Department of Public Safety rulemaking authority to carry out the online verification system set out by the bill.
Subdivision 2 provides that the online verification of insurance system adopted by the Department by rule is the sole and exclusive system for reporting and verifying evidence of insurance and what information the system must include.
Subdivision 3 establishes operational standards for the system. It establishes who must be able to access the system and what information the system must include.
Subdivision 4 requires that the vendor is responsible for having its verification system respond to each requestor within established time periods.
Subdivision 5 gives the Department authority to suspend or revoke a vehicle registration if the Department has reason to believe that the vehicle is being operated without insurance. A registration may not be reinstated until applicable reinstatement fees have been paid and evidence of insurance has been provided.
Subdivision 6 requires consultation with the insurance industry and private service providers in determining objectives and details of the system.
Subdivision 7 requires the Department to publish for comment and issue a guide of its online verification system.
Subdivision 8 requires the Department and private service providers to provide contact persons for insurers during the establishment and operation of the system.
Subdivision 9 authorizes the Department to request an insurer to verify the existence of an automobile liability policy in an approved form not later than ten days from date of request when the Department has reason to believe a vehicle owner does not have valid insurance.
Subdivision 10 requires auto insurance companies to comply with this section.
Subdivision 11 requires insurers to maintain an historical record of system requests and responses for six months from date of request.
Subdivision 12 gives insurers immunity from civil and administrative liability for good faith efforts to comply with this section.
Subdivision 13 provides that this section does not apply to commercial auto coverage.
Subdivision 14 provides that nothing in the bill prohibits the Department from contracting with private service providers who have successfully implemented online verification systems in other states.
Subdivision 15 imposes a fee on new and renewal vehicle registrations and appropriates the money to the Commissioner to develop the online insurance verification system.
Section 3 requires the Department to report to the Legislature as to the benefits and costs of the online verification system within six months after it has been in operation for two years.
Section 4 provides for effective dates.