S.B. 6 Enrolled

1

UNINSURED MOTORIST IDENTIFICATION
2 DATABASE PROGRAM AMENDMENTS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Carlene M. Walker
6 House Sponsor: Todd E. Kiser
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Insurance Code and Motor Vehicles Code by amending
11 provisions relating to the Uninsured Motorist Identification Database Program.
12 Highlighted Provisions:
13 This bill:
14 . amends the definition of commercial motor vehicle insurance coverage and repeals
15 the requirement that the Insurance Department make rules establishing a procedure
16 to approve certain policies;
17 . provides that the Uninsured Motorist Identification Database Program shall be
18 audited by the State Tax Commission at least every three years rather than annually;
19 and
20 . makes technical changes.
21 Monies Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:
26 AMENDS:
27 31A-22-315, as last amended by Chapters 130 and 211, Laws of Utah 2006
28 41-12a-803, as last amended by Chapter 130, Laws of Utah 2006
29

30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 31A-22-315 is amended to read:
32 31A-22-315. Motor vehicle insurance reporting -- Penalty.
33 (1) (a) As used in this section, "commercial motor vehicle insurance coverage" means
34 an insurance policy that:
35 (i) includes motor vehicle liability coverage, uninsured motorist coverage,
36 underinsured motorist coverage, or personal injury coverage; and
37 (ii) is defined [and approved] by the department.
38 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
39 department shall make rules[: (i)] defining commercial motor vehicle insurance coverage[;
40 and].
41 [(ii) establishing a procedure to approve a policy that includes motor vehicle liability
42 coverage, uninsured motorist coverage, underinsured motorist coverage, or personal injury
43 coverage as a commercial motor vehicle insurance coverage policy.]
44 (2) (a) Except as provided in Subsections (2)(b) and (c), each insurer that issues a
45 policy that includes motor vehicle liability coverage, uninsured motorist coverage,
46 underinsured motorist coverage, or personal injury coverage under this part shall before the
47 seventh and twenty-first day of each calendar month provide to the Department of Public
48 Safety's designated agent selected in accordance with Title 41, Chapter 12a, Part 8, Uninsured
49 Motorist Identification Database Program, a record of each motor vehicle insurance policy in
50 effect for vehicles registered or garaged in Utah as of the previous submission that was issued
51 by the insurer.
52 (b) Each insurer that issues commercial motor vehicle insurance coverage shall before
53 the seventh day of each calendar month provide to the Department of Public Safety's
54 designated agent selected in accordance with Title 41, Chapter 12a, Part 8, Uninsured Motorist
55 Identification Database Program, a record of each commercial motor vehicle insurance policy
56 in effect for vehicles registered or garaged in Utah as of the previous month that was issued by
57 the insurer.

58 (c) An insurer that issues a policy that includes motor vehicle liability coverage,
59 uninsured motorist coverage, underinsured motorist coverage, or personal injury coverage
60 under this part is not required to provide a record of a motor vehicle insurance policy in effect
61 for a vehicle to the Department of Public Safety's designated agent under Subsection (2)(a) or
62 (b) if the policy covers a vehicle that is registered under Section 41-1a-221 , 41-1a-222 , or
63 41-1a-301 .
64 (d) This Subsection (2) does not preclude more frequent reporting.
65 (3) (a) A record provided by an insurer under Subsection (2)(a) shall include:
66 (i) the name, date of birth, and driver license number, if the insured provides a driver
67 license number to the insurer, of each insured owner or operator, and the address of the named
68 insured;
69 (ii) the make, year, and vehicle identification number of each insured vehicle; and
70 (iii) the policy number, effective date, and expiration date of each policy.
71 (b) A record provided by an insurer under Subsection (2)(b) shall include:
72 (i) the named insured;
73 (ii) the policy number, effective date, and expiration date of each policy; and
74 (iii) the following information, if available:
75 (A) the name, date of birth, and driver license number of each insured owner or
76 operator, and the address of the named insured; and
77 (B) the make, year, and vehicle identification number of each insured vehicle.
78 (4) Each insurer shall provide this information by an electronic means or by another
79 form the Department of Public Safety's designated agent agrees to accept.
80 (5) (a) The commissioner may, following procedures set forth in Title 63, Chapter 46b,
81 Administrative Procedures Act, assess a fine against an insurer of up to $250 for each day the
82 insurer fails to comply with this section.
83 (b) If an insurer shows that the failure to comply with this section was inadvertent,
84 accidental, or the result of excusable neglect, the commissioner shall excuse the fine.
85 Section 2. Section 41-12a-803 is amended to read:

86 41-12a-803. Program creation -- Administration -- Selection of designated agent
87 -- Duties -- Rulemaking -- Audits.
88 (1) There is created the Uninsured Motorist Identification Database Program to:
89 (a) establish an Uninsured Motorist Identification Database to verify compliance with
90 motor vehicle owner's or operator's security requirements under Section 41-12a-301 and other
91 provisions under this part;
92 (b) assist in reducing the number of uninsured motor vehicles on the highways of the
93 state;
94 (c) assist in increasing compliance with motor vehicle registration and sales and use tax
95 laws; and
96 (d) assist in protecting a financial institution's bona fide security interest in a motor
97 vehicle.
98 (2) The program shall be administered by the department with the assistance of the
99 designated agent and the Motor Vehicle Division.
100 (3) (a) The department shall contract in accordance with Title 63, Chapter 56, Utah
101 Procurement Code, with a third party to establish and maintain an Uninsured Motorist
102 Identification Database for the purposes established under this part.
103 (b) The contract may not obligate the department to pay the third party more monies
104 than are available in the account.
105 (4) (a) The third party under contract under this section is the department's designated
106 agent, and shall develop and maintain a computer database from the information provided by:
107 (i) insurers under Section 31A-22-315 ;
108 (ii) the division under Subsection (6); and
109 (iii) the Motor Vehicle Division under Section 41-1a-120 .
110 (b) (i) The database shall be developed and maintained in accordance with guidelines
111 established by the department so that state and local law enforcement agencies and financial
112 institutions as defined in Section 7-1-103 can efficiently access the records of the database,
113 including reports useful for the implementation of the provisions of this part.

114 (ii) (A) The reports shall be in a form and contain information approved by the
115 department.
116 (B) The reports may be made available through the Internet or through other electronic
117 medium, if the department determines that sufficient security is provided to ensure compliance
118 with Section 41-12a-805 regarding limitations on disclosure of information in the database.
119 (5) With information provided by the department and the Motor Vehicle Division, the
120 designated agent shall, at least monthly for submissions under Subsection 31A-22-315 (2)(b) or
121 at least twice a month for submissions under Subsection 31A-22-315 (2)(a):
122 (a) update the database with the motor vehicle insurance information provided by the
123 insurers in accordance with Section 31A-22-315 ; and
124 (b) compare all current motor vehicle registrations against the database.
125 (6) The division shall provide the designated agent with the name, date of birth,
126 address, and driver license number of all persons on the driver license database.
127 (7) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
128 department shall make rules and develop procedures in cooperation with the Motor Vehicle
129 Division to use the database for the purpose of administering and enforcing this part.
130 (8) (a) The designated agent shall archive computer data files at least semi-annually for
131 auditing purposes.
132 (b) The internal audit unit of the tax commission provided under Section 59-1-206
133 shall audit the program at least [annually] every three years.
134 (c) The audit under Subsection (8)(b) shall include verification of:
135 (i) billings made by the designated agent; and
136 (ii) the accuracy of the designated agent's matching of vehicle registration with
137 insurance data.