Property & Casualty 2008 Compliance Conference

1. Property & Casualty 2008Compliance Conference

2. TexasSure Vehicle Insurance Verification

3. About TexasSure • Created by SB 1670 (79th Legislature, 2005) • Joint effort: • Texas Department of Insurance (TDI) • Texas Department of Public Safety (DPS) • Texas Department of Motor Vehicles (TxDMV) (formerly TxDOT) • Texas Department of Information Resources (DIR) • Primary goal is to reduce the number of uninsured motorists in Texas

4. How TexasSure Works • Data Sources • TxDMV database of registered vehicles • Weekly updates • DPS database of self-insured vehicles • Weekly full book • DPS Driver License database • Weekly updates • Insurance company data • Weekly full book of business, personal auto • Weekly full book of business, commercial auto (optional)

5. How TexasSure Works • Vehicles Included • Financial responsibility is required on all vehicles, except trailers and semi trailers, registered for on-road use unless a vehicle qualifies for a special registration class (antique, parade, etc). • All vehicles covered under a personal auto policy must be reported unless the insurer is able to determine that the vehicle is not subject to Texas registration for on-road use • ATVs and golf carts are excluded from reporting

6. How TexasSure Works • Policies Included • Personal Auto • Non-owner • Mileage-based • Commercial Auto (optional)

7. How TexasSure Works • Matching • Each week, all reported insured vehicles are matched to the database of registered vehicles • Vendor uses matching algorithms and “fuzzy logic”, which enables data that is not exactly the same to be accurately matched • 99%+ weekly match rate • TexasSure database is updated weekly

8. How TexasSure Works • Matching Example #1 • TxDMV Registration Data • Owner: Melissa Mallett • VIN: 12345678910111213 • Address: 333 Guadalupe St • Insurer Data • Driver: Melissa Burkhart • VIN: 12345678910111213 • Address: 333 Guadalupe St •  MATCH

9. How TexasSure Works • Matching Example #2 • TxDMV Registration Data • Owner: Melissa Burkhart • VIN: 12345678910111213 • Address: 333 Guadalupe St • Insurer Data • Driver: Melissa Burkhart • VIN: 22345678910111217 • Address: 333 Guadalupe St •  MATCH

10. Insurer Responsibilities • Division 7, 28 TAC §§ 5.601 – 5.611 • Reporting Guide and User Manual • Achieve and maintain a 98% match rate by January 1, 2010

11. Insurer Responsibilities • TDI Monitoring Activity • Review of insurer reporting status (weekly) • Comparison of TexasSure and TICO data (quarterly) • Review of reported expired policies (quarterly) • Review of insurer compliance with reporting requirements (quarterly)

12. Who Uses TexasSure? • Access is strictly limited to authorized State users • Available to all Texas law enforcement agencies • Released October 2008 • Law Enforcement searches on the following fields: • License Plate • VIN • Driver License Number (in test) • Name and Date of Birth (in test)

13. Who Uses TexasSure? • Vehicle Registration Renewal • Released June 2008 • Available in county tax offices and online • Not available at point-of-sale locations, such as grocery stores

14. Who Uses TexasSure? • Future Authorized Users • Driver license offices • Vehicle inspection stations

15. TexasSure Consumer Notices • Unmatched Notice • Began December 2009 • Less than 1% of insured vehicles cannot be matched to a registered vehicle • TexasSure assists customers in identifying the reason for a non-match, advises on corrective action • Second notice sent if no response is received after 30 days

16. TexasSure Consumer Notices • Uninsured Notice • Scheduled to begin mid-June • Notices to owners of registered vehicles that appear to be uninsured • Will attempt to exclude commercial vehicles where feasible • Customers will be able to report policy information if they are self-insured or insured on a commercial or personal policy • TDI will attempt to verify reported policies

17. TexasSure Consumer Notices • TexasSure Call Center Established • Assist consumers in resolving Unmatched or Uninsured notice • Toll-free number (IVR and CSR access) • Website • Mail

18. TexasSure Stats • 250+ participating insurance companies • Over 99% of all reported insured vehicles are matched to a registered vehicle • 98%+ average insurance company match rate • Monthly usage continues to increase • Law enforcement: approx 3M queries each month • TxDMV offices: approx 1.4M queries each month

19. Unmatched Vehicle Registrations As of 2/22/2010 21.32% Statewide • Includes only registration classes that require auto liability insurance • Represents uninsured vehicles as well as some vehicles insured on a commercial auto policy or self-insured.

20. Next Steps • Include commercial auto policies • Recommendation from Texas State Auditor’s Office in their recent audit of TexasSure • Legislation instructed to implement commercial auto “when feasible” • Expand use to driver license offices and vehicle inspection stations

21. Frequently Asked Questions • Is the policyholder’s personal information protected? • Yes, access to your policyholder’s personal information is restricted by the Federal Driver Privacy Protection Act and various Texas statutes.

22. Frequently Asked Questions • What are the penalties for driving without insurance? • First time offenders are subject to a fine of up to $350, plus court costs, and may be assessed additional fees as authorized by Transportation Code Chapter 708. Repeat offenders are also subject to a two-year driver license suspension.

23. Frequently Asked Questions • How can I ensure that policyholders will not be mis-identified as uninsured? • Take action to correct incorrect and/or missing data and policy and policyholder information; confirm the information that you have on file.

24. Frequently Asked Questions • Will I be able to check insurance coverage on an individual driver? • No. Only authorized State users have access to the data.

25. Frequently Asked Questions • Will I be able to obtain a list of vehicles identified as uninsured and use that for marketing purposes? • No. Records of insured and uninsured vehicles will not be made available to anyone other than authorized State users.

26. Frequently Asked Questions • Do I still need to provide proof of insurance cards? Do my customers still need to carry their proof of insurance card? • Yes, Drivers are still required by law (Texas Transportation Code § 601.053) to make available current effective paper proof of insurance upon request.

27. TexasSure Vehicle Insurance Verification Melissa Burkhart, Coordinator Staff: Iris Saenz • Maria Pullin • Tiffany Sloane 512-305-7488 Email: TexasSure@tdi.state.tx.us www.TexasSure.com