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COMMISSIONER'S BULLETIN # B-0044-06
December 15, 2006
To: All insurers providing motor vehicle liability insurance in Texas
Re: Commissioner's Order No. 06-1201, adoption of new 28 TAC Sections 5.601 - 5.611, Financial Responsibility Verification Program
By Commissioner's Order No. 06-1201 the Commissioner of Insurance adopted new §§5.601 - 5.611. This rule concerns the Financial Responsibility Verification Program to verify automobile insurance coverage under the Texas Motor Vehicle Safety Responsibility Act as required by SB 1670, 79 th Legislature, Regular Session.
New §§5.601 - 5.611 require each insurer to report their full book of business on a weekly basis to the program Vendor, beginning not earlier than January 1, 2007 and not later than June 30, 2007. This rule applies to insurers providing motor vehicle liability insurance in this state under personal automobile insurance policies and specifies the requirements, procedures, duties, and obligations of these insurers to comply with the program. The rule also allows commercial automobile insurance policies to be reported on a voluntary basis. In addition, the rule requires insurers to investigate and correct data errors identified by the Vendor. Under the rule, each insurer will be expected to meet and maintain a 95 percent match rate beginning January 1, 2008, and a 98 percent match rate beginning January 1, 2010. The complete text of the rule may be accessed at: http://www.tdi.state.tx.us/rules/pdf/5.601-5.611.pdf.
The Financial Responsibility Verification Program Reporting Guide and User Manual (user manual) will provide technical guidance to insurers on how to comply with the requirements and procedures specified in the rule. The user manual specifications are subject to change based on technology or program experience. The user manual may be obtained from the Data Services Division of the Texas Department of Insurance, Mail Code 105-5D, P.O. Box 149104, Austin, TX 78714 or the Department website at www.tdi.state.tx.us/company/frvp.html. A copy may also be requested via email to TexasFRVP@tdi.state.tx.us.
SB 1670 required the Department, in consultation with the other implementing agencies (Texas Department of Transportation, Texas Department of Public Safety, and Texas Department of Information Resources), to establish the program. The program, as outlined in new §§5.601 - 5.611, contemplates verification of insurance through both an event based process and an ongoing verification process. The event based process allows users to obtain accurate and current insurance verification information promptly upon request. The ongoing verification process allows for the matching of insurer records to Texas Department of Transportation data to identify uninsured motor vehicles on a continuous basis. Users of both processes will be checking that insurance is maintained in compliance with the Texas Motor Vehicle Safety Responsibility Act.
Pursuant to Transportation Code 601.453, the Department and the implementing agencies selected HDI Solutions, Inc. (HDI) as the vendor to implement the program. HDI is the developer and ongoing administrator of Alabama's Financial Responsibility Verification Program. HDI also provides similar services for a variety of state clients in other industries. In addition, HDI provides extensive data matching, warehousing, and mining services for 16 state Medicaid programs.
Submission of the Company Profile Form as provided in the user manual to HDI by January 30, 2007, will facilitate implementation of the program. Additionally, to minimize any delays and technical issues, all insurers are strongly encouraged to participate in testing prior to submission of the full book of business. Key dates associated with this process are:
1. Connectivity and Transmittal Testing: HDI's system will be available by January 15, 2007;
2. Validation and Matching Testing: HDI's system will be available by March 1, 2007;
3. Error Receipt Testing: HDI's system will be able to provide error reports by April 15, 2007; and
4. Companies should notify HDI that testing is complete and that they are ready to submit weekly full books of business by June 30, 2007.
In addition, the Department, HDI, and volunteer insurers are in the process of establishing a task force for the development of a web services pilot program. Interested insurers and persons should consult TDI's website at www.tdi.state.tx.us/company/frvp.html for additional information.
Questions relating to this bulletin should be directed to Melissa Mallett at (512) 305-7201.
C. H. Mah
Senior Associate Commissioner
Property & Casualty Program (MC 105-5G)
P.O. Box 149104Austin, TX 78714