Current through Register Vol. 46, No. 12, March 20, 2024
(a) An insurance
company or servicing agent shall comply with the following requirements when
reporting motor vehicle liability insurance notices:
(1) Initial load (LOD). A one time
notification of motor vehicle liability insurance coverage in the form of a
transfer of an insurance company's book of business for all insured vehicles
registered in New York State. An additional notification is permitted to
transfer an insurance company's book of business for composite rated vehicles
registered in New York State. The effective date provided with an initial load
transaction shall be the actual policy effective date reflective of the last
policy level activity, e.g., issuance, reinstatement or renewal.
(2) New business (NBS). A notification or
confirmation of motor vehicle liability insurance coverage. Notices shall be
submitted for the following business events: policy issuance (every vehicle
covered under the policy at the time of issuance); vehicle(s) added to an in
force policy; replacement vehicle(s) added to an in force policy; vehicle(s)
moved to another insurer within an insurance company group; renewal of a for
hire policy (all for hire vehicles only); and confirmation of insurance in
response to a DMV initiated mandatory verification (MVF) transaction.
Note: NBS notices shall be reprocessed (matching retried)
by DMV as described in section
34.9(d)
of this Part.
(3)
Reinstatement (REI). A notification that motor liability insurance coverage has
been reinstated or restored. A notification to rescind an erroneous
cancellation (XLC) notice. The REI effective date is compared to the previously
submitted XLC cancellation effective date to determine if there is any a lapse
of coverage.
Note:A cancellation (except FH) shall be reported to DMV
within 30 days of the cancellation effective date but only after any insurance
company provided grace period for receipt of late payment has expired. It shall
not be an insurance company's or servicing agent's practice to report
cancellation notices without regard to any subsequent volume of reinstatement
notices. In other words, cancellation notices reported one week shall not
result in a high percentage of reinstatement notices reported the next week.
Such practice is not permitted since it will result in multiple unnecessary
letters to policyholder registrants. The number of reinstatement notices
submitted shall represent a small percentage of the number of cancellation
notices submitted.
(4)
Cancellation (XLC). A notification that motor vehicle liability insurance
coverage has been canceled, terminated or suspended, whether initiated by the
insurance company or insured. Notices shall be submitted for the following
business events: policy cancellation or non-renewal (every vehicle covered by
the policy at the time of cancellation or non-renewal); vehicle dropped without
replacement from an in force policy; liability insurance suspended on a vehicle
that remains on an in force policy; and cancellation response to a DMV
initiated negative verification (NVF) transaction.
(5) No insurance (NIS). A repudiation of
motor vehicle liability insurance coverage in response to a DMV initiated
mandatory verification (MVF) transaction. The insurance company is advising
that the paper proof of insurance accepted by DMV is invalid and/or fraudulent.
An insurance company or servicing agent shall exercise due diligence when
submitting a no insurance (NIS) notice to DMV in response to a DMV initiated
mandatory verification (MVF) traction. An insurance company or servicing agent
shall not submit a NIS notice to DMV if the vehicle is insured by said
insurance company.
(6) Resubmission
of notices. An insurance company or servicing agent shall resubmit, using the
same transaction code, a corrected LOD, NBS, REI, XLC or NIS notice for an
unmatched notice (edit error or unresolved no-hit exception) returned by DMV,
within the time frame specified by this Part, unless the original submission
was excluded from being reported to DMV as set forth in sections
34.1(d),
34.7
and
34.12 of
this Part.
(b) DMV shall
initiate the following notices:
(1) Mandatory
verification (MVF). A transaction sent to an insurance company or servicing
agent by DMV due to the absence of electronic insurance information in DMV's
insurance information database. A MVF transaction requires a confirmation of
liability coverage (new business-NBS) or a repudiation of liability coverage
(no insurance-NIS) response from an insurance company. A MVF transaction
requires insurance company electronic verification of paper insurance
information submitted to DMV as a result of: a registration transaction
processed by DMV for a registrant; an inquiry letter or suspension/revocation
order sent to a registrant; or an accident or traffic ticket issued to a
registrant where insurance status is at issue.
(2) Negative verification (NVF). A
transmission (annual or as otherwise permitted or required), using cartridge
tape media, sent to an insurance company or servicing agent by DMV that
provides a record of each registrant/vehicle in DMV's insurance information
database that reflects that insurance company as the insurer of record. Such
transmission is based on the proof of insurance previously provided
electronically to DMV by an insurance company or servicing agent. NVF notices
are not based on paper proof of insurance submitted to DMV by a registrant or
an agent or broker on behalf of a registrant. A NVF transaction requires a
cancellation (XLC) response from an insurance company or servicing agent only
if the insurance company no longer insures a registrant/vehicle. An insurance
company or servicing agent shall not submit any other type of notice to DMV in
response to a NVF transaction. A NVF transmission represents electronic proof
of insurance notices (LOD, NBS or REI) posted in the insurance information
database at a given point in time. Accordingly, NVF notices will not reflect:
(i) any previously submitted cancellations
returned unmatched as edit errors or unresolved no-hit exceptions;
and
(ii) cancellations submitted by
an insurance company or servicing agent after the effective date of the NVF
transmission.
An insurance company or servicing agent shall not submit an
additional cancellation notice in response to a DMV initiated NVF notice if a
cancellation notice was submitted or resubmitted and matched (hit or resolved
no-hit exception) to DMV's insurance information database.
