Comprehensive Real-Time Motor Vehicle Insurance Verification
MV Solutions and VeriSol have joined forces to create MV VeriSol to provide jurisdictions with the most effective solution for identifying uninsured motorists. MV Solutions and VeriSol, the two industry leaders in motor vehicle insurance verification, have more implementations than all the other vendors combined.
MV VeriSol offers a comprehensive turnkey solution for real-time motor vehicle insurance verification. MV VeriSol Motor Vehicle Insurance Verification software (MVIV) performs both event-based verification (traffic stops, registrations, accidents, courts) and ongoing verification to identify cancellations and gaps in coverage. MVIV performs online verification using standardized Web services based on IICMVA specifications and industry standards with enhancements and integration as required by each jurisdiction. MVIV is the most accurate, up-to-date approach to insurance verification and provides the same result as calling the insurance company. MVIV can reduce the uninsured motorist rate by up to 80% while providing a positive cash flow for the jurisdiction.
Each jurisdiction has the flexibility to implement differently based on legislation, business rules, preferences, and budget. If desired, MV VeriSol can provide a complete turnkey system, including hardware, software, consulting, a letter campaign, and call center services.
VeriSol was the first company to offer real-time vehicle insurance verification in compliance with the online Web services approach supported by the insurance industry. In 2006, Florida was the first to implement VeriSol Vehicle Insurance Verification (VIV) software as part of a pilot program with the Insurance Industry Committee on Motor Vehicle Administration (IICMVA) that proved that the IICMVA Web services model was successful in performing event driven real-time inquiries. Many states have followed and, today, over 400 insurers that provide coverage to over 90% of the vehicles in the U.S. are already online.
Sixeen states have adopted the online model. The trend toward this approach continues to grow because it means standardization for the insurers yet it allows each jurisdiction the flexibility to implement differently based on that jurisdiction's legislation, business rules, preferences, system infrastructure, and budget. MVIV can be added to existing systems or can provide a complete solution that does not require the jurisdiction to collect or maintain any insurance data or to handle any data error corrections. Each jurisdiction decides on the best way to implement the system and which features to use.
Only the IICMVA model provides online real-time verification. If a jurisdiction is not connecting directly to the insurance companies to get the same result as calling the insurer on the phone, it's NOT real-time verification.
The jurisdiction establishes a program in which all insurers, except those specifically granted an exemption, are required to implement Web services capable of verifying the existence of mandatory insurance for vehicles which must have insurance in order to legally operate on public roads. An insurer that provides coverage to fewer vehicles may request approval to use an alternative method and be exempt from establishing a Web service. The jurisdiction may publish guidelines for exemption or evaluate each request and respond to the insurer. Vehicles that are not permitted on public roads are exempt from the program. Vehicles that are commercially insured may or may not be exempt, but, if they are included, policy verification is performed because vehicle information typically is not maintained by the insurer.
There are two aspects to the approach:
- Real-time verification for event driven inquiries
- Ongoing verification utilizing periodic data reporting for more accurate matching
Real-time verification is performed for each event, such as a traffic stop, crash, registration, renewal, inspection, or court appearance. With no additional input required by the user, the jurisdiction's administrative and/or law enforcement application software automatically sends event based inquiries, including whatever data elements are available, via the MVIV Web service. MVIV sends inquiries utilizing the IICMVA model, ANSI, and ACORD standards to Web services established by the insurers. MVIV first routes each inquiry to the last insurer of record, if any, based on the NAIC code. If coverage cannot be confirmed by the insurer of record, MVIV broadcasts inquiries to all other insurers. Each insurer responds with CONFIRMED or UNCONFIRMED and provides the reason it was not confirmed in conformance with the ANSI or ACORD schema. MVIV replies to the application software based on the insurers' responses and the jurisdiction's business rules, and can include the NAIC code and name of the insurer of record. The jurisdiction's application software automatically includes the insurance information in its response to the user.
Each night, batches created by other processes, such as vehicles that are scheduled to receive renewal notices, are sent to MVIV which processes each request, appends a response, and sends back a file with the insurance status. If cancellation reporting is part of the jurisdiction's program, cancellation batches are also processed nightly based on the jurisdiction's business rules. If new coverage cannot be found for a vehicle within the grace period specified by the jurisdiction, it is reported to the jurisdiction to be included in a letter campaign. The system also can provide files showing the dates of all suspected lapses in coverage, whether the vehicles have current insurance or not. An optional feature allows insurance agents to enter temporary records through a secure web browser for new policies or vehicles. The system automatically rechecks these vehicles and reports to the jurisdiction any vehicles for which policies are not issued within the period allowed by the jurisdiction.
To achieve the optimum system possible, the data used for real-time verification should be as accurate and complete as possible and should include the insurance policy number. If the jurisdiction collects the NAIC code and policy number at registration and confirms that the Vehicle Identification Number (VIN) on the insurance card matches the registration VIN, data reporting by the insurers may not be necessary. If not, data reporting and matching may be used as described below.
MVIV includes automatic rechecks of vehicles that have been identified as previously uninsured and those that the jurisdiction may add, creating an Uninsured Motorist Database. MVIV periodically automatically rechecks those vehicles and registration rechecks, if part of the jurisdiction's program, based on the jurisdiction's business rules, and reports non-compliance to the jurisdiction.
If a jurisdiction already has a system in place for ongoing verification, the addition of the MVIV online verification engine alone may provide a complete system. If there is no current system and ongoing verification and/or more accurate data matching is desired, data reporting should be part of the program. The IICMVA model supports this approach instead of reporting of terminations and/or additions. MVIV will work with any of these approaches.
If the vehicle has been matched to an insurance policy, even though the VIN on the registration does not match the VIN reported by the insurer, MVIV will create a relationship between the two VINs. Whenever the jurisdiction requests verification for the VIN on the registration, MVIV will transmit in the verification request the VIN reported by the insurer.
By adding these enhancements, the number of letters sent to people who actually do have insurance will be minimized and the associated costs of postage, customer service time, and court time will be reduced. Since the accuracy of the system causes users to have more confidence in it, law enforcement and the courts are more likely to take action, resulting in greater revenue to the jurisdiction via fines and reinstatement fees. MVIV provides the jurisdiction with a monthly report on each insurer's performance so action can be taken against insurers that are not in compliance and, at the jurisdiction's option, also informs each insurer of its performance.
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