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VeriSol
Real-Time Vehicle
Insurance Verification
Introduction
VeriSol is the first company to
offer real-time vehicle insurance verification in compliance
with the online Web services approach supported by the insurance
industry. Over two years ago,
Florida was the first to
implement VeriSol Vehicle Insurance Verification (VeriSol VIV)
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. Many of the
insurers are already online and over 100 insurers that provide
coverage to over 85% of the vehicles in the U.S. will be online
in Wyoming by July 1, 2008.
In the past year,
Wyoming,
Texas,
and
Utah each have implemented a hybrid approach that combines VeriSol VIV real-time verification with periodic reporting by
the insurers to
Insure-Rite for optimum accuracy of data matching and ongoing
verification. Phase 2 of the IICMVA model which focuses on
ongoing verification includes the hybrid approach and recently
was approved unanimously by the insurers. The trend toward the
hybrid approach is growing 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.
VeriSol VIV 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. |
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 VeriSol VIV software running on a server
in the jurisdiction’s data center. VeriSol VIV sends inquiries
utilizing the IICMVA model, ANSI, and ACORD standards to Web
services established by the insurers. VeriSol VIV 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,
VeriSol VIV 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.
VeriSol VIV 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 VeriSol VIV 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
VeriSol VIV includes automatic
rechecks of vehicles that have been identified as previously
uninsured and those that the jurisdiction may add, creating an
“Uninsured Motorist Database.” VeriSol VIV 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
VeriSol VIV 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. VeriSol
VIV will work with any of these approaches.
If data reporting is implemented,
all insurers, whether or not they have established Web services,
must report a full book of business via File Transfer Protocol
(FTP), at least monthly, to Insure-Rite’s secure site and the
jurisdiction provides the registration data, in a manner similar
to the programs in Texas, Wyoming, and Utah. There is no need
for the insurers to report terminations and additions because
Insure-Rite compares each new book of business to the last one
reported by the insurers to determine the changes.
Insure-Rite matches the data
reported by the insurers with the registration data, and sends
the resulting files to VeriSol VIV to be used to point to the
insurer of record and to identify vehicles whose insurance has
not been reported. Insure-Rite also provides reports showing
each vehicle that was matched whose registration VIN does not
match the insurer VIN. 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 VeriSol VIV.
Whenever the jurisdiction
requests verification for the VIN on the registration, VeriSol
VIV 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. VeriSol 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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