FOR IMMEDIATE RELEASE:
Tuesday, June 15, 2010
DMV, INSURANCE DEPARTMENT ANNOUNCE 10TH ANNIVERSARY OF IIES
Program Removes Uninsured Vehicles From Highways, Reduces Fraud
Commissioner David J. Swarts of the New York State Department of Motor Vehicles (DMV) and Superintendent James J. Wrynn of the New York State Insurance Department (NYSID) announced that today, June 15, is the 10th anniversary of the implementation of the Insurance Information and Enforcement System (IIES), which is a program that identifies and removes uninsured vehicles from state highways and helps reduce fraud.
The design and implementation of IIES was a joint effort between the DMV, the Insurance Department and the insurance industry. The system is based on the mandatory electronic filing of insurance information to immediately affirm coverage or the lack of a policy. When IIES was first introduced it was estimated that up to 700,000 vehicles in the state did not have proper liability coverage.
"We are very pleased with the success of the IIES system, which continuously electronically monitors the insurance status of the more than ten million vehicles registered in the state," Commissioner Swarts said. "IIES has made the DMV more efficient by communicating directly with insurance companies to reduce the number of unnecessary and burdensome inquiries sent to motorists. Additionally, DMV has worked closely with NYSID and the insurance industry to review and streamline IIES business filing requirements and to assess new technology for electronic transmission of data. IIES has also helped to give New York one of the lowest uninsured vehicle rates in the nation."
"The IIES system has been a major success," Superintendent Wrynn said. "The Insurance Department will continue to work closely with DMV and the insurance industry to reduce fraud and ensure that New York drivers are properly insured. This is an essential part of holding down auto insurance rate increases for hardworking New Yorkers while making sure they are protected on our roads."
According to the Insurance Research Council, prior to the implementation of the IIES system, it was estimated that New York's uninsured vehicle rate was 10.5 percent. It is now estimated that New York has an uninsured rate of 5.2 percent, making the state rank fourth in the nation with the least amount of uninsured vehicles. Only North Dakota, Maine and Massachusetts rank above the state with lower rates of uninsured vehicles. When New York is compared to states with similar numbers of registered vehicles, the dramatic success of the IIES program is clearly evident. Texas has an uninsured rate of 15.4 percent, Florida has an uninsured rate of 22.9 percent and California has an 18.1 percent uninsured rate.
As part of the IIES implementation, DMV and NYSID developed and provided all licensed insurance companies, agents and brokers in New York State with software that generates 2D bar-coded Insurance Identification Cards, which serve as evidence that an insurance policy was issued. These cards contain key information pertaining to the insurance company, policy number, effective date of insurance, registrant and vehicle type. This anti-fraud measure eliminates easily forged ID cards and helps ensure there is a policy in force at the time of card issuance.
Expansion of Internet transaction offerings to give customers more flexibility in resolving insurance issues came about since the implementation of IIES. Several Web-based transactions available through the DMV Web site (www.dmv.ny.gov) eliminate the need for customers to visit a DMV office. These include: providing proof of insurance; insurance lapse civil penalty payment; and insurance status check. In addition, DMV has recently implemented an imaging system to allow staff electronic access to "paper" records so that customer inquiries can be resolved more quickly and efficiently.
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