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HB 191: An Overview

HB 191: An Overview. Presented by: David Colmans, Executive Director Georgia Insurance Information Service. DMVS/GEICS. The Latest Numbers How many insurable vehicles are in Georgia (excluding government, trailers and interstate licensed)?   6,820,721

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HB 191: An Overview

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  1. HB 191: An Overview Presented by: David Colmans, Executive DirectorGeorgia Insurance Information Service

  2. DMVS/GEICS • The Latest Numbers • How many insurable vehicles are in Georgia (excluding government, trailers and interstate licensed)?  6,820,721 • How many VALID listings in GEICS?  6,146,849

  3. DMVS/GEICS • How many "NO VALID INSURANCE or UNKNOWN in GEICS? 673,827 comprised of fleet vehicles with VINs not collected, vehicles on car lots, self-insured vehicles and uninsured vehicles

  4. DMVS/GEICS • How many uninsured motorists are there in Georgia? • Good question!Possibly 5 to 6 percent by backing out of the 673,827 above, all categories listed other than Uninsured.  Actual number of uninsured not available as GEICS is currently written.

  5. DMVS/GEICS • Why Do You Need Your Insurance ID Card At All Times (in the vehicle) • Part 5 • Going to take the driver’s road test? Oh, oh! • Examiner WILL ask for proof of insurance onthe vehicle being used for the road test • ID card necessary since DMVS examiners do not yet have access to GEICS • Remember: out-of-state driving; leasing a car; getting a loaner car; car crash scene

  6. DMVS/GEICS • DMVS, Department of Insurance to meet in December to finalize error rate rules for insurers • No reports to DOI since enactment of HB 191 • Previous target error rate: 5%

  7. DMVS/GEICS • Legislation from DMVS re: GEICS in 2004 session of General Assembly:None anticipated • January 1, 2004 issues: Oh yes! • Lag time by auto dealers • Insurance cards no longer accepted

  8. DMVS/GEICS • Training for law enforcement • Training for tag/title offices • Agent training • Customer information • Lowering error rates

  9. HB 191 • Section 1 • Creates new Code Section 40-2-10 to allow a vehicle registrant to voluntarily cancel a motor vehicle registration when the vehicle is not in use. • Such cancelled registration may be reinstated at a later date by payment of all accrued ad valorem taxes and license fees. • No penalty will be assessed when reinstating the registration. • The vehicle cannot be legally operated on public roads in Georgia while the registration is not current. • This feature is intended to assist those persons who have a legitimate reason for a vehicle to sit idle for an extended period of time, such as over-seas military, an inoperable vehicle, a stored vehicle, etc.

  10. HB 191 • Section 2 • Amends Code Section 40-2-26 regarding proof of insurance when registering a vehicle in Georgia, and requires a tag agent to be provided “satisfactory proof” of insurance before issuing or renewing a vehicle registration. • “Satisfactory proof” is defined as: • The insurance database • Proof allowed under Code Section 40-6-10(a) (See Section 5 below) • Such other proof as allowed by the rules and regulations of the DMVS.

  11. HB 191 • Section 3 • Amends Code Section 40-2-137 regarding notification of coverage termination and suspension of registration. • Amends the definition of “Commercial Vehicle Policy” by removing the “natural person” exception. • Defines “Fleet Policy” (for purposes of this code section) as either:

  12. HB 191 • 1. A “commercial vehicle policy” that insures two or more vehicles not identified individually by a VIN on the policy; or, • 2. A “commercial policy” that is subject to adjustment by audit at the end of the policy period for vehicle changes. • 3. “Commercial Policy” is not defined. One would assume the definition for “Commercial Vehicle Policy” applies. However, since the exact term was not used, some insurers may attempt to exercise broader discretion for audited policies at their own risk. • (See Section 4 referenced below)

  13. HB 191 • Defines “Lapse” (for purposes of this code section) as having occurred when the DMVS records indicate no insurance on a vehicle for one or more days. (Perhaps as no insurance for at least 24 hours.) • The duty of the insurer to report insurance coverage to the database is waived when the vehicle is insured by a fleet policy. • Lapse fees, as required under this code section, shall be paid by the vehicle owner to his/her county tax commissioner. The county shall be authorized to keep $5.00 of the fee as a collection fee.

  14. HB 191 • Eliminates the $10 savings on the restoration fee when the owner pays by mail. • Allows the county to keep $10.00 of the restoration fee as a collection fee. • Delays the implementation date for suspension of registrations and assessment of penalties by DMVS from February 1, 2003 to December 1, 2003. • DMVS “may” waive the lapse fee when an owner voluntarily cancels the vehicle registration pursuant to Code Section 40-2-10. (See Section 1 above) • The lapse fee, restoration fee, and registration suspension shall be waived for military deployed outside the continental U.S.

  15. HB 191 • Section 4 • Amends Code Section 40-5-71 regarding reporting requirements of insurers to the database. • Amends the definition of “Commercial Vehicle Policy” by removing the “natural person” exception. • Adds the definition of “Fleet Policy” (Identical to Section 3).

  16. HB 191 • Defines “Owner” as any entity, other than a lienholder, having title to a vehicle, and entitled to use and possession of the vehicle. It also includes the lessee of a vehicle operated under a lease agreement. • Fleet policies are not required to be reported to the database. • However, commercial vehicle policies, other than fleets, are no longer exempt from the reporting requirements.

  17. HB 191 • Insurers are now required to include the name of the insurer when reporting insurance coverage to the database. Will be on GCIC screens for police. • Quarterly reports by DMVS to the Commissioner of Insurance shall be not begin until January 1, 2004, and shall not include fleet policies. • Reporting irregularities by insurers to the database shall not invalidate an otherwise valid termination. Previously, the waiver only applied to cancellations.

  18. New GCIC Screen for Law Enforcement:Note added fields VN99 GEORGIA REGISTRATION AND TITLE INFORMATION SYSTEM RESPONSE BASED UPON: PLATE NO: 912NJC PLATE CAT: YEAR: LIENS: PAGES: 50 ATTENTION: VEHICLE DETAIL RESPONSE VIN: 4J2ZU68F91UJ00811 2001 MERCURY MOUNTAINEER MP GRN TITLE NO: 778891011416907 PURCHASE DT: 20010512 CUSTOMER ID: 99999999 DOB: 19200215 JOE DEAN TEST 10 SMITH BLVD SE TAX COUNTY: FULTON ATLANTA GA 30339-3383 CURRENT PLATE NO: ABC999 CAT: AA ISSUE DT: 20020215 VALID DT: 20020410 DECAL NO: 00050616 INS STATUS: VALID INSURANCE COVERAGE 01-01-03 ACME INSURANCE COMPANY PRIOR PLATE NO: ABC999 CAT: AA ISSUE DT: 20010328 VALID DT: 20020210 DECAL NO: 00099999 *END OF MESSAGE* Vehicle effective Date Insurance Company Name

  19. VN99 GEORGIA REGISTRATION AND TITLE INFORMATION SYSTEM RESPONSE BASED UPON: PLATE NO: 912NJC PLATE CAT: YEAR: LIENS: PAGES: 50 ATTENTION: VEHICLE DETAIL RESPONSE VIN: 4M2ZU66E91UJ00913 2001 MERCURY MOUNTAINEER MP GRN TITLE NO: 778891011416907 PURCHASE DT: 20010512 CUSTOMER ID: 57798903 DOB: 19690210 DAREN DEAN DUNCAN 1023 ADAMS LAKE BLVD SE TAX COUNTY: FULTON ATLANTA GA 30339-3383 CURRENT PLATE NO: 912NJC CAT: AA ISSUE DT: 20020212 VALID DT: 20020410 DECAL NO: 00050616 INS STATUS: NO VALID INSURANCE COVERAGE PRIOR PLATE NO: 912NJC CAT: AA ISSUE DT: 20010328 VALID DT: 20020210 DECAL NO: 00073304 *END OF MESSAGE*

  20. VN99 GEORGIA REGISTRATION AND TITLE INFORMATION SYSTEM RESPONSE BASED UPON: PLATE NO: 912NJC PLATE CAT: YEAR: LIENS: PAGES: 50 ATTENTION: VEHICLE DETAIL RESPONSE VIN: 4M2ZU66E91UJ00913 2001 MERCURY MOUNTAINEER MP GRN TITLE NO: 778891011416907 PURCHASE DT: 20010512 CUSTOMER ID: 57798903 DOB: 19690210 DAREN DEAN DUNCAN 1023 ADAMS LAKE BLVD SE TAX COUNTY: FULTON ATLANTA GA 30339-3383 CURRENT PLATE NO: 912NJC CAT: AA ISSUE DT: 20020212 VALID DT: 20020410 DECAL NO: 00050616 INS STATUS: Unknown - CHECK FOR COMMERCIAL, BINDER, OR DECLARATION PRIOR PLATE NO: 912NJC CAT: AA ISSUE DT: 20010328 VALID DT: 20020210 DECAL NO: 00073304 *END OF MESSAGE*

  21. HB 191 • In addition to the vehicle owner and law enforcement while conducting official investigations, the insurer of record may also access the DMVS insurance records regarding the applicable vehicle.

  22. HB 191 • Section 5 • Amends Code Section 40-6-10 regarding proof of insurance for motor vehicles. • Allows a valid insurance card to act as proof of insurance by carrying the same in the vehicle through December 31, 2003. • Beginning January 1, 2004, the DMVS database will be used for proof of insurance.

  23. HB 191 • The insurance card will continue to act as proof of insurance beyond 2003 for vehicles: • Insured under a fleet policy as defined in Code Sections 40-2-137 and 40-5-71, • Engaged in interstate commerce and registered under reciprocal agreements in accordance with Article 3A of Chapter 2 of the Georgia motor vehicle code, or • Registered with the Georgia Commissioner of Insurance as a self-insured vehicle, provided the VIN is not reported to the Commissioner of Insurance and a copy of the self-insurance certificate is kept with the card.

  24. HB 191 • Use of the declaration of another policy providing temporary coverage and proof of purchase as temporary proof of insurance may now be used for 30 days (instead of 20 days) from the date of purchase. • Law enforcement officers must now determine if a vehicle is insured every time they stop a vehicle. • Law enforcement officers shall no longer confiscate a driver’s license for failure to provide proof of insurance.

  25. HB 191 • A court “may impose” a fine not to exceed $25 if a person, receiving a citation for no proof of insurance, proves to the court that insurance was in fact in force. One would assume this would only apply for insurance cards until January 1, 2004, or in the case of temporary insurance. • The insurance card for a fleet policy must contain at least the following:

  26. HB 191 • Name of the insurer • Policy number • Policy issue or effective date • Policy expiration date, and • Name of the insured • It “may” include the year, make, model, and VIN, but is not required.

  27. HB 191 • Policy information card requirements that had applied to non-commercial policies now apply to non-fleet policies. • Beginning January 1, 2004, non-fleet policy vehicles must carry the policy information card in the vehicle for purposes of providing information to law enforcement during an accident investigation (but not as proof of insurance). • DMVS records shall not be prima-facie proof of insurance for vehicles insured under fleet policies or self-insured through DOI registration.

  28. HB 191 • Section 6 • Amends Code Section 40-6-11 regarding proof of insurance for motorcycles by clarifying that DMVS records shall be prima-facie evidence of insurance for purposes of this code section only. • Attempts to bring motorcycles under the insurance proof requirements of Code Section 40-6-10. However, the language used in this code section is somewhat ambiguous. DMVS confirms it intends to treat motorcycles exactly like other motor vehicles under GEICS.

  29. HB 191 • Law enforcement shall “request the operator of a motorcycle…to produce proof or evidence of … insurance” every time an officer stops a motorcycle.Again, some ambiguity exists since proof of insurance will be in the database beginning January 1, 2004 as with other motor vehicles.DMVS assumes the officer will look to the database for proof.

  30. HB 191 • Section 7 • Amends Chapter 33 of the Georgia insurance code by striking and reserving Code Section 33-34-5 regarding proof of insurance for licensing vehicles. This will now be handled by Code Section40-2-26 (Section 2 referenced above).

  31. HB 191 • Notes: • Since the bill is to become effective upon the Governor’s signature, use of the “voluntary” transaction forms (by facsimile from local county tag offices) will become less prevalent soon. • However, beginning January 1, 2004, you may see their resurgence. Both DMVS and the General Assembly believe the database’s integrity shall be such that secondary proof (i.e. the insurance card) shall no longer be necessary.

  32. HB 191 • Beginning on that date, the local county tag offices will have to rely on the database as originally intended, unless DMVS approves additional forms of proof as authorized under Code Section 40-2-26.

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