N.Y. Comp. Codes R. & Regs. tit. 15 § 34.3

Current through Register Vol. 46, No. 45, November 2, 2024

Section 34.3 - Reporting motor vehicle liability insurance notices (transactions)

(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.

N.Y. Comp. Codes R. & Regs. Tit. 15 § 34.3