With input from IIABNY and other groups, the New York State Department of Motor Vehicles this week proposed regulations that would for the first time permit insurers to issue electronic insurance I.D. cards. The proposal appeared in the Feb. 25 issue of New York State Register.
The DMV said that it consulted with several interested groups while drafting the proposed regulations, including the state police; the New York State Association of Chiefs of Police; seven individual insurers; and the Property Casualty Insurers (PCI). PCI asked IIABNY for an assessment of potential negative impacts on insurance producers. IIABNY said that any effects on producers would be minimal, since producers do not issue permanent I.D. cards. The DMV also surveyed its peers in the 30 states that currently permit electronic I.D. cards to address concerns raised by the police chiefs.
Highlights of the proposed rules:
- Insurance companies that choose to will be permitted to issue electronic I.D. cards. However, they will be able to do so only with the consent of the person or entity named on the card.
- Electronic ID cards will be acceptable as proof of insurance in the same manner as paper ones
- The cards must be capable of being displayed on a device that would earn the driver a ticket if used while in motion, such as cell phones, PDA’s, tablets, laptops, game systems, and similar devices.
- They must meet the standards that apply to paper cards
- Insurers will be prohibited from issuing them for:
- Temporary I.D. cards – agents and brokers will probably not be able to issue them
- Self-insured entities
- Fleet transactions, where the vehicle description on the card is “ALL OWNED VEHICLES”
- Retail auto dealers, where the vehicle description on the card is either “DEALER GARAGE AUTO LIABILITY POLICY" or “ALL OWNED AND NON-OWNED VEHICLES-COMPHREHENSIVE AUTO LIABILITY POLICY"
- Wholesale auto dealers and transporters, where the vehicle description on the card is "AUTO LIABILITY POLICY"
The DMV is accepting comments from the public on the proposed regulations until April 11.