ENROLLED
COMMITTEE SUBSTITUTE
FOR
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 394
(Senators Unger, McCabe, Chafin and Plymale, original sponsors)
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[Passed March 13, 2010; in effect ninety days from passage.]
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AN ACT to amend and reenact §17A-3-3 of the Code of West Virginia,
1931, as amended; to amend and reenact §17D-2A-1, §17D-2A-2,
§17D-2A-3, §17D-2A-6, §17D-2A-7 and §17D-2A-8 of said code; to
amend said code by adding thereto a new section, designated
§17D-2A-6a; and to amend said code by adding thereto a new
section, designated §33-6-31g, all relating to authorizing the
Division of Motor Vehicles to use an electronic insurance
verification program to identify uninsured noncommercial motor
vehicles; surrendering registration plate to division when
required security dropped by owner or registrant; requiring
insurance companies licensed to do business in this state to
participate in an electronic insurance verification program
developed by the motor vehicles commissioner; providing
requirements for an electronic insurance verification program;
providing duties of the motor vehicles commissioner relating to a program; setting forth duties of insurers relating to a
program; providing penalties for failing to have the required
security or knowingly operating a motor vehicle without the
required security by suspending the owner's driver's license
and revoking vehicle registration; providing for a hearing;
providing that any rules promulgated by the motor vehicles
commissioner pertaining to a program be consistent with the
Insurance Industry Committee for Motor Vehicle Administration
Model; and authorizing the insurance commissioner to
promulgate rules and emergency rules, some of which may
prescribe penalties.
Be it enacted by the Legislature of West Virginia:
That §17A-3-3 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that §17D-2A-1, §17D-2A-2, §17D-2A-3,
§17D-2A-6, §17D-2A-7 and §17D-2A-8. of said code be amended and
reenacted; that said code be amended by adding thereto a new
section, designated §17D-2A-6a; and that said code be amended by
adding thereto a new section, designated §33-6-31g, all to read as
follows:
CHAPTER 17A. MOTOR VEHICLE ADMINISTRATION, REGISTRATION,
CERTIFICATE OF TITLE, AND ANTITHEFT PROVISIONS.
ARTICLE 3. ORIGINAL AND RENEWAL OF REGISTRATION; ISSUANCE OF
CERTIFICATES OF TITLE.
§17A-3-3. Application for registration; statement of insurance or
other proof of security to accompany application; criminal penalties; fees; special revolving fund.
Every owner of a vehicle subject to registration under this
article shall make application to the division for the registration
of the vehicle upon the appropriate form or forms furnished by the
division and every application shall bear the signature of the
owner or his or her authorized agent, written with pen and ink, and
the application shall contain:
(a) The name, bona fide residence and mailing address of the
owner, the county in which he or she resides or business address of
the owner if a firm, association or corporation.
(b) A description of the vehicle including, insofar as the
data specified in this section may exist with respect to a given
vehicle, the make, model, type of body, the manufacturer's serial
or identification number or other number as determined by the
commissioner.
(c) In the event a motor vehicle is designed, constructed,
converted or rebuilt for the transportation of property, the
application shall include a statement of its declared gross weight
if the motor vehicle is to be used alone, or if the motor vehicle
is to be used in combination with other vehicles, the application
for registration of the motor vehicle shall include a statement of
the combined declared gross weight of the motor vehicle and the
vehicles to be drawn by the motor vehicle; declared gross weight
being the weight declared by the owner to be the actual combined
weight of the vehicle or combination of vehicles and load when
carrying the maximum load which the owner intends to place on the vehicle; and the application for registration of each vehicle shall
also include a statement of the distance between the first and last
axles of that vehicle or combination of vehicles.
The declared gross weight stated in the application may not
exceed the permissible gross weight for the axle spacing listed in
the application as determined by the table of permissible gross
weights contained in chapter seventeen-c of this code; and any
vehicle registered for a declared gross weight as stated in the
application is subject to the single-axle load limit set forth in
that chapter.
(d) Each applicant shall state whether the vehicle is or is
not to be used in the public transportation of passengers or
property, or both, for compensation and if used for compensation,
or to be used, the applicants shall certify that the vehicle is
used for compensation and shall, as a condition precedent to the
registration of the vehicle, obtain a certificate of convenience or
permit from the Public Service Commission unless otherwise exempt
from this requirement in accordance with chapter twenty-four-a of
this code.
(e) A statement under penalty of false swearing that liability
insurance is in effect and will continue to be in effect through
the entire term of the vehicle registration period within limits
which may not be less than the requirement of section two, article
four, chapter seventeen-d of this code, which shall contain the
name and National Association of Insurance commissioners assigned
code of the applicant's insurer, the policy number, and any other information required by the commissioner of Motor Vehicles or that
the applicant has qualified as a self-insurer meeting the
requirements of section two, article six of said chapter and that
as a self-insurer he or she has complied with the minimum security
requirements as established in section two, article four of that
chapter. If the commissioner determines that the required security
is not or was not in effect, he or she shall suspend the vehicle
owner's driver's license and revoke the vehicle registration in
accordance with the provisions of article two-a, chapter seventeen-
d of this code.
If any
person making an application required under the provisions of this
section, in the application knowingly provides false information,
false proof of security or a false statement of insurance, or if
any person, including an applicant's insurance agent, knowingly
counsels, advises, aids or abets another in providing false
information, false proof of security, or a false statement of
insurance in the application he or she is guilty of a misdemeanor
and, upon conviction thereof, shall be fined not more than five
hundred dollars, or be imprisoned in jail for a period not to
exceed fifteen days, or both fined and imprisoned and, in addition
to the fine or imprisonment, shall have his or her driver's license
suspended for a period of ninety days and vehicle registration
revoked if applicable.
(f) Any further information that is reasonably required by the
division to enable it to determine whether the vehicle is lawfully entitled to registration.
(g) Each application for registration shall be accompanied by
the fees provided in this article and an additional fee of fifty
cents for each motor vehicle for which the applicant seeks
registration.
(h) Revocation of a motor vehicle registration pursuant to
this section does not affect the perfection or priority of a lien
or security interest attaching to the motor vehicle that is noted
on the certificate of title to the motor vehicle.
CHAPTER 17D. MOTOR VEHICLE SAFETY RESPONSIBILITY LAW.
ARTICLE 2A. SECURITY UPON MOTOR VEHICLES.
§17D-2A-1. Purpose of article.
The purpose of this article is to promote the public welfare
by requiring every owner or registrant of a motor vehicle licensed
in this state or operated in this state to maintain certain security
during the registration period for the vehicle and to provide the
means for the Division of Motor Vehicles, law enforcement and the
judicial branch to electronically verify evidence of current
insurance coverage at any time while a vehicle has a current
registration or is operated on the roads and highways.
§17D-2A-2. Scope of article.
This article applies to the operation of all motor vehicles
required to be registered or operated on the roads and highways to
have the security in effect, as provided in section two, article two
of this chapter, with the exception of motor vehicles owned by the
state, any of its political subdivisions or by the federal government.
For the purposes of this article, commercial auto coverage is
defined as any coverage provided to an insured, regardless of number
of vehicles or entity covered, under a commercial coverage form and
rated from a commercial manual approved by the Department of
Insurance. This article shall not apply to vehicles insured under
commercial auto coverage; however, insurers of such vehicles may
participate on a voluntary basis.
§17D-2A-3. Required security; exceptions.
(a) Every owner or registrant of a motor vehicle required to
be registered and licensed in this state shall maintain security as
hereinafter provided in effect continuously throughout the
registration or licensing period except in case of a periodic use
or seasonal vehicle, in which case the owner or registrant is
required to maintain security upon the vehicle only for the portion
of the year the vehicle is in actual use. As used in this section,
a periodic use or seasonal vehicle means a recreational vehicle,
antique motor vehicle, motorcycle or other motor vehicle which is
stored part of the year and used seasonally.
(b) The owner or registrant shall immediately surrender the
registration plate to the Division of Motor Vehicles when he or she
drops the required security during the registration period. An
owner of a periodic use or seasonal vehicle may retain a
registration plate subject to legislative rules promulgated by the
commissioner.
(c) Every nonresident owner or registrant of a motor vehicle,
which is operated upon any road or highway of this state and which
has been physically present within this state for more than thirty
days during the preceding three hundred sixty-five days shall
thereafter maintain security as hereinafter provided in effect
continuously throughout the period the motor vehicle remains within
this state.
(d) No person may knowingly drive or operate upon any road or
highway any motor vehicle upon which security is required by the
provisions of this article unless the required security is in
effect.
(e) The security shall be provided by one of the following
methods:
(1) By an insurance policy delivered or issued for the delivery
in this state by an insurance company authorized to issue vehicle
liability and property insurance policies in this state within
limits which may not be less than the requirements of section two,
article four of this chapter; or
(2) By qualification as a self-insurer under the provisions of
section two, article six of this chapter.
(f) This article does not apply to any motor vehicle owned by
the state or by a political subdivision of this state, nor to any
motor vehicle owned by the federal government.
§17D-2A-6. Investigation by duly authorized law-enforcement
officer to include inquiry regarding required security; notice by officer or court to Division of
Motor Vehicles.
(a) At the time of investigation of a motor vehicle offense or
crash the State Police or other law-enforcement agency or when a
vehicle is stopped by a law-enforcement officer for reasonable
cause, the officer of the agency making the investigation shall
inquire of the operator of any motor vehicle involved and, by an
inquiry through the on-line insurance verification program
established in accordance with section six-a of this article if
available as to the existence upon the vehicle or vehicles of the
evidence of insurance or other security required by the provisions
of this code and upon a finding by the law-enforcement agency,
officer or agent thereof that the security required by the
provisions of this article is not in effect, as to any vehicle, he
or she shall notify the Division of Motor Vehicles of the finding
within five days. Provided, That the law-enforcement officer or
agent may not stop vehicles solely to inquire as to the certificate
of insurance.
(b) A defendant who is charged with a traffic offense that
requires an appearance in court shall present the court at the time
of his or her appearance or subsequent appearance with proof that
the defendant had security at the time of the traffic offenses as
required by this article subject to verification by the court
through the Division of Motor Vehicles or its agent or by an on-line
insurance verification program if available.
(c) If, as a result of the defendant's failure to show proof,
the court determines that the defendant has violated this article,
the court shall notify the Division of Motor Vehicles within five
days.
§17D-2A-6a. Determining if required security is in effect.
(a) The commissioner may make a determination that the required
security on a motor vehicle is not in effect based upon crash
reports required under the provisions of article four, chapter
seventeen-c of this code, reports or citations from law-enforcement
agencies, citations or abstracts of conviction from courts or from
information from an on-line electronic insurance verification
program.
(b) The commissioner is authorized to develop and implement an
electronic insurance verification program based upon a model
established by the Insurance Industry Committee on Motor Vehicle
Administration to electronically verify evidence of insurance
coverage with insurance companies.
(c) The commissioner may contract with a third party vendor to
act as his or her agent to develop the program, conduct the
electronic verification process with insurance companies and to
operate the program.
(d) If developed and implemented by the commissioner, the on-
line insurance verification program shall:
(1) Be able to verify, on an on-demand basis minus reasonable
down time for system maintenance as agreed upon by the division or
its agent and the insurance carrier, the liability insurance status as of the time of the inquiry or at other times not exceeding six
months prior unless otherwise agreed upon by the division or its
agent and the insurance carrier or via other similar electronic
system that is consistent with insurance industry and Insurance
Industry Committee on Motor Vehicle Administration (IICMVA)
recommendations and the specifications and standards of the IICMVA
model;
(2) Be able to make insurance verification inquiries to
insurers by using multiple data elements for greater matching
accuracy including: National Association of Insurance Commissioner's
(NAIC) code specific to each licensed insurance company, vehicle
identification numbers and policy number or other data elements as
otherwise agreed to by the division or its agent and the insurer.
(3) Provide sufficient measures for the security and integrity
of data including a requirement that the information obtained
through the operation of the program be only used for the sole use
of the Division of Motor Vehicles or its agent, law enforcement and
the judiciary to effectuate the provisions of this article; and
(4) Utilize open and agreed upon data and data transmission
standards and standard SML extensible markup language schema.
(e) If the commissioner develops and implements an on-line
insurance verification program, each insurer shall:
(1) Cooperate with the Division of Motor Vehicles, or its agent
in establishing and operating the program;
(2) Maintain the data necessary to verify the existence of
mandatory liability insurance coverage provided to its customers pursuant to the required time period established for the on-line
insurance verification program;
(3) Maintain the internet web service, pursuant to the
requirements established under the online insurance verification
program, through which online insurance verification can take place
that includes the ability to respond to authorized inquiries on
whether the vehicle is insured or the policy in effect on the
requested date through the insurer's national insurance
commissioners association code, vehicle identification number,
insurance policy number or other data key or keys as otherwise
agreed to by the division or its agent and the insurer;
(4) Provide security consistent with accepted insurance
industry and United States motor vehicle agency standards pertinent
to the transmission of personal data;
(5) Be immune from civil and administrative liability for good
faith efforts to comply with the terms of the verification program;
and
(6) As a condition of writing motor vehicle liability insurance
in this state, insurance carriers shall cooperate with the division
or its agent and the insurance commission in establishing and
maintaining an insurance verification system. Nothing prohibits an
insurer from using the services of a third party vendor for
facilitating the insurance verification program required by this
section.
(f) If the commissioner develops and implements an on-line insurance verification program, the Division of Motor Vehicles or
its agent as applicable shall:
(1) Consult and cooperate with insurers in establishing and
operating the on-line insurance verification system;
(2) Designate and maintain a contact person for insurers during
the establishment and implementation of the on-line insurance
verification system;
(3) Conduct a pilot project to test the insurance verification
system no less than eighteen months prior to final implementation;
(4) Establish and maintain the systems necessary to make
verification requests to insurers using the data elements that the
Division of Motor Vehicles or its agent and the insurer have agreed
upon and are necessary to receive accurate responses from insurers;
(5) For all information transmitted and received, implement and
maintain strict system and data security measures consistent with
applicable standards. Data secured via the reporting system by
either the division or its agent may not be shared with any party
other than those permitted by state or federal privacy laws;
(6) Be responsible for keeping all interested state agencies
informed on the implementation status, functionality, and planned or
unplanned service interruptions; and
(7) Provide alternative methods of reporting for small insurers
writing less than 500 non-commercial motor vehicle policies in the
state as determined by the Division of Motor Vehicles or its agent;
(g) Any information obtained by the division or its agent under
the provisions of an electronic insurance system is for the sole use of the Division of Motor Vehicles or its agent, law enforcement and
the judiciary to effectuate the provisions of this article and is
exempt from disclosure under the provisions of article one, chapter
twenty-nine-b and may not be considered a public record as defined
in section two, article one, chapter twenty-nine-b of this code.
(h) Not more than two years after the establishment of an on-
line insurance verification program, the Division of Motor Vehicles,
after consultation with insurers, shall report to the Legislature as
to the costs of the program incurred by the division, insurers and
the public and the effectiveness of the program in reducing the
number of uninsured motor vehicles.
§17D-2A-7. Suspension or revocation of license, registration;
reinstatement.
(a) Any owner of a motor vehicle, subject to the provisions of
this article, who fails to have the required security in effect at
the time such vehicle is registered or being operated upon the roads
or highways shall have his or her driver's license suspended by the
commissioner of the division of motor vehicles and shall have his or
her motor vehicle registration revoked as follows:
(1) For the first offense, the commissioner shall suspend the
driver's license and vehicle registration until such time as he or
she presents current proof of insurance on all currently registered
vehicles: Provided, That if an owner complies with the provisions of
this subdivision, and pays a penalty fee of $200 before the
effective date, the driver's license suspension of thirty days shall not be imposed and the vehicle registration revocation shall be not
imposed and no reinstatement fees are required.
(2) For the second offense within five years, the commissioner
shall suspend the owner's driver's license for a period of thirty
days and shall revoke the owner's vehicle registration until he or
she presents to the Division of Motor Vehicles the proof of security
required by this article.
(3) For the third or subsequent offense within five years, the
commissioner shall suspend the owner's driver's license for a period
of ninety days and revoke the vehicle registration until such time
as he or she presents current proof of insurance.
(4) If the motor vehicle is titled and registered in more than
one name, the commissioner shall suspend the driver's license of
only one of the owners.
(b) Any person who knowingly operates a motor vehicle upon the
roads or highways of this state which does not have the security
required by the provisions of this article shall have his or her
driver's license suspended by the commissioner subject to the
following:
(1) For the first offense, the commissioner shall suspend the
driver's license until such time as he or she presents current proof
of insurance on all currently registered vehicles: Provided, That if
a driver complies with the provisions of this section and pays a
penalty fee of $200 before the effective date of the driver's
license suspension, the thirty day driver's license suspension shall
not be imposed and no reinstatement fees are required.
(2) For the second offense within five years, the commissioner
shall suspend the driver's license for a period of thirty days.
(3) For the third or subsequent offense within five years, the
commissioner shall suspend the person's driver's license for a
period of ninety days.
(c) A person's driver's license shall be suspended in
accordance with subsection(b) of this section if the person is
operating a motor vehicle designated for off-highway use upon the
roads and highways of this state without the required security in
effect.
(d) The commissioner may withdraw a suspension of a driver's
license or revocation of a motor vehicle registration and refund any
penalty or reinstatement fees at any time provided that the
commissioner is satisfied that there was not a violation of the
provisions of required security related to operation of a motor
vehicle upon the roads or highways of this state by such person.
The commissioner may request additional information as needed in
order to make such determination.
(e) A person may not have his or her driver's license suspended
or motor vehicle registration revoked under any provisions of this
section unless he or she and any lienholder noted on the certificate
of title shall is first given written notice of such suspension or
revocation sent by certified mail, at least thirty days prior to the
effective date of such suspension or revocation, and upon that
person's written request, he or she shall be afforded an opportunity
for a hearing thereupon as well as a stay of the commissioner's order of suspension or revocation and an opportunity for judicial
review of such hearing. The request for a hearing shall be made
within ten days from the date of receipt of the notice of driver's
license suspension or motor vehicle registration revocation. The
scope of the hearing is limited to questions of identity or whether
or not there was insurance in effect at the time of the event
causing the commissioner's action. Upon affirmation of the
commissioner's order, the period of suspension, revocation or other
penalty commences to run.
(f) A suspended driver's license is reinstated following the
period of suspension upon compliance with the conditions set forth
in this article and a revoked motor vehicle registration is reissued
only upon lawful compliance with the provisions of this article.
(g) Revocation of a motor vehicle registration pursuant to this
section does not affect the perfection or priority of a lien or
security interest attaching to the motor vehicle that is noted on
the certificate of title to the motor vehicle.
(h) Any owner or driver of a motor vehicle determined by an
electronic insurance verification program to be uninsured shall be
assessed the same criminal and administrative sanctions prescribed
in this chapter subject to the following;
(1) Any person who is assessed a penalty prescribed by this
section has the same procedural due process provided by this chapter
or by rules promulgated by the division to show that there was not
a violation and provide for the exoneration of any penalties or
records; and
(2) The commissioner may accept a binder, an identification
card or a declaration page from a policy as evidence of insurance
pending electronic verification to stay a pending administrative
sanction.
§ 17D-2A-8. Rules.
The Commissioner of the Division of Motor Vehicles is hereby
authorized to promulgate rules, in accordance with chapter
twenty-nine-a of this code, for the administration, operation and
enforcement of the provisions of this article. Any rules or
procedures which pertain to an electronic insurance verification
program shall be consistent with the provisions and intent of the
standards and specifications of the Insurance Industry Committee for
Motor Vehicle Administration Model.
CHAPTER 33. INSURANCE.
ARTICLE 6. THE INSURANCE POLICY.
§33-6-31g. Electronic insurance verification program; insurer's
duty to cooperate.
(a) If the Division of Motor Vehicles establishes an electronic
insurance verification program in accordance with the provisions of
section six-a, article two-a, chapter seventeen-d of this code, any
insurance company that issues or delivers in this state a policy or
contract of bodily injury liability insurance or of property damage
liability insurance covering liability arising from the ownership,
maintenance or use of any motor vehicle, or upon any motor vehicle
for which a certificate of title has been issued by the Division of Motor Vehicles of this state, shall comply with the requirements of
the program.
(b) The insurance commissioner may propose rules for
legislative approval in accordance with the provisions of article
three, chapter twenty-nine-a of this code as necessary to implement
the provisions of this section, and may initially promulgate
emergency rules pursuant to the provisions of section fifteen,
article three, chapter twenty-nine-a of this code. Such rules may
prescribe penalties, including fines and other administrative
sanctions, that may be imposed by the commissioner for a company's
failure to comply with requirements of the electronic insurance
verification program.
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