186A.040 Accessible online insurance verification system -- Definitions --

2,525 words·~11 min read·/ky/186a-040

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Administrative regulations -- Technical advisory committee -- Notification of

cancellation, nonrenewal of policy, or absence of vehicle identification number

to insured -- Revocation of license -- Information not subject to Kentucky

Open Records Act.

(1)As used in this section, unless the context requires otherwise:

(a)"Accessible online insurance verification system" or "system" means the

accessible online insurance verification system established by the department

under this section;

(b)"Commercial motor vehicle" means a motor vehicle that is covered by

commercial motor vehicle insurance;

(c)"Commercial motor vehicle insurance" means coverage:

1. Provided to an insured, regardless of the number of vehicles or entities

covered, under a commercial coverage form; and

2. Rated from a commercial manual approved by the Department of

Insurance;

(d)"Department" means the Department of Vehicle Regulation;

(e)"IICMVA" means the Insurance Industry Committee on Motor Vehicle

Administration or a successor organization;

(f)"Insurer" means an insurer that provides coverage for the security required

under KRS 304.39-080;

(g)"Personal motor vehicle" means a motor vehicle that is not covered by

commercial motor vehicle insurance; and

(h)"Requestor" means the authorized personnel of any of the following:

1. The department;

2. Any District or Circuit Court of this state;

3. Any county attorney or Commonwealth's attorney of this state;

4. Any county clerk of this state;

5. Any law enforcement agency of this state; or

6. Any other entities authorized by the department, to the extent permitted

by state and federal privacy laws.

(a)The department shall:

1. Provide and receive information on the insurance status of motor

vehicles registered in Kentucky in accordance with this section and KRS

304.39-085 and 304.39-087;

2. Establish an accessible online insurance verification system that:

a. Is used for verification of whether motor vehicles are covered by

the security required under KRS 304.39-080;

b. Is interfaced with AVIS;

c. Beginning not later than October 1, 2026, is:

i. Operational; and

ii. Available to insurers;

d. Beginning not later than January 1, 2027, is accessible by

requestors to assist the requestors in the identification of motor

vehicles that are not in compliance with KRS 304.39-080; and

e. Includes information that enables the department to make inquiries

to insurers by using multiple data elements for greater matching

accuracy;

3. On or before January 1, 2026, promulgate an emergency and ordinary

administrative regulation in accordance with KRS Chapter 13A to

establish, implement, and effectuate the accessible online insurance

verification system, which:

a. Shall:

i. Except as otherwise provided in this section, establish

guidelines and requirements for the system that are

consistent with IICMVA guidelines;

ii. Include appropriate provisions to secure the system's data

against unauthorized access;

iii. Specify, in accordance with subsection

(3)of this section, the

information that insurers shall electronically submit, and the

format, manner, and frequency of the electronic submissions,

to the system for personal motor vehicles and commercial

motor vehicles; and

iv. Establish a period of not less than six

(6)months but not

more than twelve

(12)months from the date of all requests

and responses that system data shall be retained; and

b. May establish an alternative method of reporting, in lieu of

reporting to the system, for insurers who write one thousand

(1,000) or fewer policies or contracts that provide coverage for the

security required under KRS 304.39-080; and

4. Make any amendments to the administrative regulation promulgated

under this section or any other administrative regulation related to the

system that are necessary to establish, implement, operate, or maintain

the accessible online insurance verification system, which shall include

any necessary improvements to or replacement of the system.

(b)The department may contract with a private service provider who has

successfully implemented similar systems in other states to assist in

establishing, implementing, operating, and maintaining the accessible online

insurance verification system.

a. By January 1, 2026, publish on its website and distribute to motor

vehicle insurers authorized to do business in Kentucky a final

detailed guide of the accessible online insurance verification

system;

b. Periodically review, make any necessary updates to, and publish

on its website any updates to the guide referenced in this

subparagraph; and

c. Distribute any updates made to the guide referenced in this

subparagraph to motor vehicle insurers authorized to do business

in Kentucky.

2. The guide referenced in subparagraph 1. of this paragraph shall not

conflict with, or impose requirements that are not set out or incorporated

by reference in, an administrative regulation promulgated by the

department under this section.

3. The Department of Insurance shall assist the department in making the

distributions required under this paragraph.

(d)The department and any contracted private service provider shall each

maintain a contact person for insurers during the implementation and

operation of the accessible online insurance verification system.

(a)Except as otherwise provided in this section, insurers that provide coverage

for the security required under KRS 304.39-080 for personal motor vehicles

shall:

1. Cooperate with the department in the implementation, operation,

maintenance, and any necessary improvements to or replacement of the

accessible online insurance verification system; and

2. On and after January 1, 2027:

a. Send to the department:

i. A list of the vehicle identification numbers

(VINs)of the

personal motor vehicles that are covered by the insurer; and

ii. The name of each policyholder for each personal motor

vehicle covered by the insurer as specified by the

department;

b. Provide access to any other insurance status information for

personal motor vehicles that are covered by the insurer as specified

by the department; and

c. Submit the information required under this subparagraph

electronically to the department through the accessible online

insurance verification system.

(b)1. In lieu of compliance with KRS 304.39-085, an insurer may opt to

submit insurance status information for commercial motor vehicles

electronically to the department through the accessible online insurance

verification system.

2. An insurer that opts to submit insurance status information under this

paragraph shall comply with any specifications and requirements

established by the department under subsection (2)(a)3.a.iii. of this

section for the information.

(c)Insurers may contract for the services of a third-party vendor to facilitate or

otherwise comply with the requirements of this section.

(d)Insurers shall not be subject to civil or administrative liability for libel,

slander, or any other relevant tort, and no civil cause of action of any nature

shall arise against an insurer or an authorized employee of an insurer for any

good-faith efforts to comply with this section, including but not limited to

submitting, or providing access to, any information or data required or

permitted under this section, even if the information or data is inaccurate or

incomplete.

(a)As used in this subsection, "domestic" insurer and "foreign" insurer have the

same meanings as in KRS 304.1-070.

(b)There is created a technical advisory committee whose duties shall be to:

1. Review the establishment, implementation, operation, and maintenance

of the accessible online insurance verification system; and

2. Make recommendations to the department to ensure that the accessible

online insurance verification system is:

a. Efficient and operational upon implementation; and

b. Consistent with the objectives and requirements of this section.

(c)The technical advisory committee shall be composed of the following seven

(7)members:

1. Four

(4)voting members appointed by the commissioner of the

Department of Insurance in accordance with paragraph

(d)of this

subsection;

2. The president of the Kentucky County Clerk's Association or the

president's designee, who shall serve as a voting ex officio member;

3. The commissioner of the Department of Insurance or the commissioner's

designee, who shall serve as a voting ex officio member; and

4. The commissioner of the department or the commissioner's designee,

who shall serve as a nonvoting ex officio member and as chair of the

committee.

(d)1. The commissioner of the Department of Insurance shall, in accordance

with this paragraph, appoint to the technical advisory committee one

representative for each of the four

(4)insurers:

a. Identified by the Department of Insurance under this paragraph;

and

b. That designate, upon request and within a reasonable amount of

time, an individual to serve as a representative on the committee.

2. The Department of Insurance shall identify the following four

insurers:

a. The domestic property and casualty insurer that has the largest

dollar amount of direct written premiums for motor vehicle

insurance in Kentucky as of the date of the notification made

under subparagraph 4. of this paragraph;

b. The two

(2)foreign property and casualty insurers that have the

largest dollar amounts of direct written premiums for motor

vehicle insurance in Kentucky as of the date of the notification

made under subparagraph 4. of this paragraph; and

c. A domestic or foreign property and casualty insurer with direct

written premiums for motor vehicle insurance in Kentucky

designated by the commissioner of the Department of Insurance to

represent small and medium-sized insurers in Kentucky's motor

vehicle insurance market.

3. If an insurer identified by the Department of Insurance under

subparagraph 2. of this paragraph declines or fails, within a reasonable

amount of time, to designate an individual to serve as a representative of

the insurer on the technical advisory committee, the Department of

Insurance shall identify:

a. For an insurer identified under subparagraph 2.a. of this paragraph,

the domestic property and casualty insurer with the next largest

dollar amount of direct written premiums for motor vehicle

insurance in Kentucky as of the date that the previously identified

domestic property and casualty insurer declined or failed to

designate a representative;

b. For an insurer identified under subparagraph 2.b. of this

paragraph, the foreign property and casualty insurer with the next

largest dollar amount of direct written premiums for motor vehicle

insurance in Kentucky as of the date that the previously identified

foreign property and casualty insurer declined or failed to

designate a representative; and

c. For an insurer identified under subparagraph 2.c. of this paragraph,

an insurer that meets the requirements of that subdivision.

4. The Department of Insurance shall:

a. Request each insurer identified by the Department of Insurance

under subparagraph 2. of this paragraph, and if applicable,

subparagraph 3. of this paragraph, to designate an individual to

serve as a representative of the insurer on the technical advisory

committee; and

b. Appoint the individual designated by the insurer notified under

this subparagraph to the technical advisory committee.

5. Each member appointed under this paragraph shall serve a four

(4)year

term and may be reappointed.

6. Vacancies of members appointed under this paragraph shall be filled:

a. Within thirty

(30)days of the vacancy; and

b. In the same manner as the original appointment.

(e)Prior to making a filing under KRS Chapter 13A or publishing and

distributing, as applicable, the department shall submit drafts of the following

to the technical advisory committee for review and recommendations:

1. Any new, amended, or repealer emergency or ordinary administrative

regulation, along with any forms required under KRS 13A.230, required

or permitted under this section or otherwise related to the system; and

2. The final detailed guide, including any updates to the final detailed

guide, required under subsection (2)(c) of this section.

(f)In addition to the requirements of paragraph

(e)of this subsection, the

department shall keep the technical advisory committee informed about, and

consult with the committee regarding, the establishment, implementation,

operation, and maintenance of the accessible online insurance verification

system.

(g)All meetings of, and communications to and from, the technical advisory

committee shall be exempt from the requirements of the Open Meetings Act,

KRS 61.805 to 61.850.

(a)The department shall immediately make a notification to a motor vehicle

owner upon any of the following:

1. Notification to the department from an insurer of cancellation or

nonrenewal of the owner's commercial motor vehicle insurance pursuant

to KRS 304.39-085;

2. Prior to January 1, 2027, if the vehicle identification number

(VIN)of

the owner's personal motor vehicle, as defined in KRS 304.39-087(1)(a),

does not appear in the database created by KRS 304.39-087 for two

consecutive reporting months; or

3. On and after January 1, 2027, if the vehicle identification number

of the owner's personal motor vehicle, or commercial motor vehicle if

the commercial motor vehicle is covered by an insurer that has opted to

report to the system, does not appear in the accessible online insurance

verification system for seven

(7)consecutive days.

(b)The notification required under paragraph

(a)of this subsection shall:

1. Be in either a paper or an electronic format;

2. Specify each motor vehicle to which the notification pertains; and

3. State that:

a. The owner's insurance is no longer valid; and

b. The department shall revoke the registration of each motor vehicle

to which the notification pertains unless one

(1)of the following

occurs within fourteen

(14)days after the date the insurance

became invalid:

i. The owner provides proof of insurance to the county clerk or

the department; or

ii. The accessible online insurance verification system indicates

that the motor vehicle or motor vehicles are covered by the

security required under KRS 304.39-080.

(c)An owner may present the proof of insurance required under this subsection in

either a paper or an electronic format.

(d)When proof of insurance is provided in electronic format, the department or

county clerk may require the owner to email or otherwise electronically

submit the proof of insurance for the department's or clerk's records.

(a)In developing the mechanism to electronically transfer information pursuant

to this section and KRS 304.39-085 and 304.39-087, the commissioner of the

department shall:

1. Consult with the commissioner of the Department of Insurance and

insurers of motor vehicles to adopt a standardized system of organizing,

recording, and transferring the information so as to minimize insurer

administrative expenses; and

2. To the maximum extent possible, utilize nationally recognized

electronic data information systems consistent with the requirements of

this section.

(b)Notwithstanding any other provision of law:

1. Information obtained by the department pursuant to this section and

KRS 304.39-087 shall not be:

a. Subject to the Kentucky Open Records Act, KRS 61.870 to

61.884; or

b. Disclosed, used, sold, accessed, or utilized in any manner, or

released by the department to any individual, entity, or state or

local agency, except:

i. In accordance with state law for the purposes specified by

this section; or

ii. In response to a specific individual request for the

information authorized pursuant to the federal Driver's

Privacy Protection Act, 18 U.S.C. sec. 2721 et seq.;

2. The department shall institute measures to ensure that only authorized

persons are permitted to access the information referenced in this

paragraph for the purposes specified by this section; and

3. Persons who knowingly release or disclose information for a purpose

other than those authorized by this paragraph or to a person not entitled

to receive it shall be guilty of a Class A misdemeanor for each release or

disclosure.

(7)The Commonwealth Office of Technology and the Department of Insurance shall

provide support and assistance to the department in carrying out the provisions of

this section.