|
|
|
Comprehensive
Real-Time
Motor Vehicle
Insurance Verification
We are pleased to announce that MV Solutions and VeriSol
have teamed up 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.
Click Here to visit
MvVeriSol.com
Introduction
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. Three years ago,
Florida
was the first to implement VeriSol Vehicle Insurance Verification (MVIV)
software as part of a pilot program with the Insurance Industry Committee on
Motor Vehicle Administration (IICMVA)
that proved that Phase 1 of the IICMVA Web services model was successful in
performing event driven real-time inquiries. Several states have followed and,
today, over 100 insurers that provide coverage to over 85% of the vehicles in
the U.S. are already online.
Eleven 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.
|
System
Description
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
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 an Application
Program Interface (API) to the MVIV software running on a server in the
jurisdiction’s data center. 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 insurer of record, if any, based on the
NAIC code. If coverage cannot be confirmed by the insurer of record, MVIV
sends inquiries to the 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 via an API based on the insurers’ responses and the jurisdiction’s
business rules, and includes the NAIC code and name of the last insurer of
record, if any. 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 provides 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.
Ongoing Verification
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 MVIV 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. Phase 2
of 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, both VINs will be provided to MVIV. Whenever the jurisdiction
requests verification for the VIN on the registration, MVIV will transmit the
VIN reported by the insurer in the verification request.
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.
Click Here for
Background
|
