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A4360
ASSEMBLY, No. 4360
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 19, 2026
Sponsored by:
Assemblywoman� DAWN FANTASIA
District 24 (Morris, Sussex and Warren)
Co-Sponsored by:
Assemblymen Sauickie and Scharfenberger
SYNOPSIS
���� �Motor Vehicle Insurance Verification Act�; requires
Motor Vehicle Commission to establish online motor vehicle insurance
verification system.�
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning
an online verification system for
motor vehicle insurance.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� This act shall be known
and may be cited as the �Motor Vehicle Insurance Verification Act.�
���� 2.��� a.�
Notwithstanding any other law to the contrary, the New Jersey Motor Vehicle
Commission (hereinafter the �commission�) shall establish
an accessible
system for online verification of the evidence of motor vehicle insurance in
accordance with the provisions of this act.� The goal of the system shall be to
assist in the identification of uninsured motorists in the most effective way
possible.
���� b.��� Motor vehicle insurers authorized
to do business in this State (hereinafter �insurers�) shall provide policy
information for the on-line insurance verification system and otherwise
cooperate with the commission in establishing the system in accordance with the
provisions of this act.
���� c.��� The online insurance
verification system established by this act shall be the sole system used in
this State for the purpose of verifying evidence of motor vehicle insurance
required by the laws of this State. �Implementation of the on-line insurance verification
system shall supersede and replace any motor vehicle insurance verification
system used in this State on the effective date of this act.
���� 3.��� a.� The
commission
shall develop and implement an online
insurance verification system that meets all of the following requirements:
���� (1)� The verification system
shall allow for requests to be sent to insurers for verification of evidence of
insurance via web services established by the insurers, through the Internet,
world wide web or a similar proprietary or common carrier electronic system, in
compliance with the specifications and standards of the Insurance Industry
Committee on Motor Vehicle Administration (hereinafter �IICMVA�), with
enhancements, additions, and modification as required by the commission so long
as they do not conflict, nullify, or add requirements that are inconsistent
with the specifications and standards of the IICMVA. �The verification system
shall include appropriate provisions to secure its data against unauthorized
access and the commission shall maintain a historical record of the system data
for a period of six to twelve months from the date of each request and
response.
���� (2)� The verification system
shall be used for verification of the evidence of mandatory motor vehicle
insurance coverage as prescribed by the laws of the State.� The verification
system shall be made accessible to all law enforcement officers for the purpose
of enforcing the mandatory motor vehicle insurance requirements of section 1 of
P.L.1972, c.197 (C.39:6B-1) through capabilities for real-time verification of
compliance with mandatory insurance requirements at traffic stops and other
appropriate events.� The verification system shall be also accessible to authorized
personnel of the commission, the courts, and any other entities authorized by
the State as permitted by State or federal privacy laws, and it shall be
interfaced, wherever appropriate, with existing State
systems
.
�
���� (3)� The verification system
shall include information to enable the commission to make inquiries to
insurers about evidence of insurance in a manner that is consistent with
insurance industry and IICMVA recommendations, specifications, and standards by
using multiple data elements for greater matching accuracy, including the
following: NAIC (National Association of Insurance Commissioners) insurance company
code, Vehicle Identification Number, policy number, or otherwise as described
in the specifications and standards of the IICMVA.
���� (4)� The commission may adopt
rules and regulations to provide to insurers who write a minimum number of
policies, as determined by the commission, the authority to use an alternative
method for reporting insurance policy data instead of establishing the web
services otherwise required by this act.
���� b.��� The commission shall
maintain the online insurance verification system in a manner that allows the
system to respond to a requestor entitled to use the system within a time
period to be established by the commission.� An insurer shall maintain its part
of the system in a manner that allows the system to respond to a requestor
entitled to use the system within the time period prescribed by the IICMVA�s
specifications and standards.
���� c.��� The commission shall
consult with representatives of the insurance industry and private Internet service
providers to determine the objectives, details, and deadlines related to the
online insurance verification system.
���� d.��� The commission shall
publish for public comment, and then issue, a detailed guide of its online
insurance verification system.
���� e.��� The commission and its
private service provider, if any, shall each maintain a contact person for
insurers during the establishment, implementation, and operation of the online
insurance verification system.
���� f.���� When the commission has
reason to believe that a motor vehicle has been or is currently being operated
without insurance, the commission may suspend or revoke the owner�s motor vehicle
registration in accordance with the provisions of section 50 of P.L.1990, c.8
(C.17:33B-41) and other applicable provisions of New Jersey law.� The
registration shall not be reinstated and a new registration shall not be issued
unless evidence of insurance has been provided to the commission and any
applicable reinstatement fees as prescribed by the commission have been paid. �These
fees shall be in addition to any other applicable fines, penalties, and fees.
���� g.��� Nothing in this act
shall be construed to prohibit the commission
from
contracting with a private Internet service provider or providers who have
successfully implemented similar systems in other states to assist in
establishing and maintaining the online insurance verification system.
���� h.��� In addition to the
online insurance identification system provided for by this act, if the
commission
has reason to believe that a motor vehicle
owner does not have valid motor vehicle insurance as required under State law,
it may request an insurer to verify the existence of a motor vehicle insurance
policy in a manner and a time period to be prescribed by the commission but not
greater than 30 days from the date the request is made. �
���� i.���� An insurer shall
cooperate with the commission in establishing and maintaining the online
insurance verification system, and shall provide access to motor vehicle
insurance policy status information in accordance with a process to be
prescribed by the commission by regulation.� An insurer shall comply with this
section�s requirements for verification of evidence of motor vehicle insurance
for every motor vehicle insured by that company in New Jersey.� An insurer
shall maintain a historical record of its system data for a minimum period of
six months from the date of the request and response.
���� j.���� This section shall not
apply to vehicles insured under commercial motor vehicle insurance coverage, except
that an insurer of such vehicles may participate on a voluntary basis.� For the
purposes of this section, �c
ommercial motor vehicle
coverage� means any coverage provided to an insured, regardless of the number
of vehicles or the entity covered, under a commercial coverage form and rated
from a commercial manual approved by the Department of Banking and Insurance.
���� k.��� An insurer shall provide
insureds who have commercial motor vehicle insurance coverage in New Jersey
with that insurer with sufficient evidence reflecting that the motor vehicle is
insured under a commercial motor vehicle insurance policy. Sufficient evidence
includes an insurance identification card clearly marked in the title with the
identifier: �Commercial Motor Vehicle Insurance Identification Card.�
���� l.���� Nothing in this section
shall be construed to prohibit an insurer from using the services of a third
party vendor to facilitate the insurer�s requirements with respect to the
online insurance verification system.
���� m.�� An insurer shall be
immune from civil and administrative liability unless the insurer has failed to
undertake good faith efforts to comply with the provision of this act. The
insurer shall not be civilly liable for any amount in excess of the actual
damages sustained by a person or entity for a violation of this act.
���� 4.��� Not more than two years
after the establishment of the online insurance verification system pursuant to
this act, the New Jersey Motor Vehicle Commission, after consultation with
representatives of the motor vehicle insurance industry, shall report to the Governor,
and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1),
as to the costs for the system, incurred by the commission, insurers, and the
public, and the effectiveness of the system in reducing the number of uninsured
motor vehicles in the State.
���� 5.��� The commission shall
establish a pilot program for a period of at least nine months during which the
online insurance verification system shall be tested.� The commission shall
ensure that the pilot program is successfully tested and the verification system
is fully operational within one year of the effective date of this act.� No
enforcement action that is based on the system shall be taken until the
commission has determined that the pilot program has been successfully
completed.
����
6.��� The Chief
Administrator of the New Jersey Motor Vehicle Commission, in consultation with
the Commissioner of Banking and Insurance, shall adopt, pursuant to the
�Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), rules and
regulations to effectuate the purposes of this act, including provisions for
imposing appropriate civil penalties for any violation of the act.
���� 7.��� This act shall become
effective on the 90th day next following enactment, but the Chief Administrator
of the New Jersey Motor Vehicle Commission may take any anticipatory
administrative action in advance thereof as shall be necessary for the
implementation of this act.
STATEMENT
���� This bill, entitled the �Motor
Vehicle Insurance Verification Act,� requires the New Jersey Motor Vehicle
Commission to establish a system for the online verification of evidence of
motor vehicle insurance, to assist in the identification of uninsured motorists.�
The bill also requires motor vehicle insurers to provide policy information for
the online insurance verification system and to otherwise cooperate with the
commission in establishing the system.
���� The bill specifies certain
requirements for the verification system, including that: (1) the online
insurance verification system comply with certain standards of the Insurance
Industry Committee on Motor Vehicle Administration (IICMVA); (2) the system be
accessible to all law enforcement officers for the purpose of enforcing the
mandatory motor vehicle insurance requirements of section 1 of P.L.1972, c.197
(C.39:6B-1) through capabilities for real-time verification of compliance with
mandatory insurance requirements at traffic stops and other appropriate events;
(3) the system include information to enable the commission to make inquiries
to insurers about evidence of insurance; and (4) the commission may adopt rules
and regulations to provide insurers who write a minimum number of policies, to
be determined by the commission, the authority to use an alternative method for
reporting insurance policy data.
���� The bill also requires the
commission to take other actions with respect to the verification system,
including maintaining the system in a manner that allows it to be responsive to
requestors, consulting with the insurance industry and private service providers,
and maintaining a contact person.
���� The bill also requires motor
vehicle insurers authorized to do business in the State to cooperate with the
commission in establishing and maintaining the system, to verify evidence of
insurance for every motor vehicle insured by that company, and to maintain
certain records regarding system data.
���� The bill provides that when
the commission has reason to believe that a motor vehicle has been or is
currently being operated without insurance, the commission may suspend or
revoke the owner�s motor vehicle registration.� The registration shall not be
reinstated and a new registration shall not be issued unless evidence of
insurance has been provided to the commission and any applicable reinstatement
fees as prescribed by the commission have been paid. �These fees shall be in
addition to any other applicable fines, penalties, and fees.
���� The bill also provides that not
more than two years after the establishment of the online insurance
verification system, the New Jersey Motor Vehicle Commission, after
consultation with representatives of the motor vehicle insurance industry,
shall report to the Governor and to the Legislature as to the costs for the
system incurred by the commission, insurers and the public, and the
effectiveness of the system in reducing the number of uninsured motor vehicles
in the State.
���� The bill requires the
commission to establish a pilot program for a period of at least nine months
during which the online insurance verification system shall be tested.� The
commission shall ensure that the pilot program is successfully tested and the verification
system is fully operational within one year of the effective date of the bill.�
The bill provides that no enforcement action that is based on the system shall
be taken until the commission has determined that the pilot program has been
successfully completed.
���� The bill requires the Chief
Administrator of the New Jersey Motor Vehicle Commission, in consultation with
the Commissioner of Banking and Insurance, to adopt, pursuant to the
�Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), rules and
regulations to effectuate the purposes of the bill, including provisions for
imposing appropriate civil penalties for any violation of the bill.
���� The bill provides that it
becomes effective on the 90th day next following enactment, but the Chief
Administrator of the New Jersey Motor Vehicle Commission may take any
anticipatory administrative action in advance thereof as shall be necessary for
the implementation of the bill�s provisions.