The purpose of Using Web Services to Verify Auto Insurance Coverage is to propose a system to provide documentation of insured status through a partnership of the states, the public, and insurers. This system is intended to be uniform, cost effective for the states, cost effective for insurers, and beneficial for the public
interest.
Mandatory liability insurance laws exist in 47 of the 50 states. Auto Liability Insurance Reporting (ALIR) programs, often referred to as State Reporting systems, are designed to enforce compulsory insurance laws in 23 states. Two new programs are currently in development (see Appendix A).
From an insurance company perspective, evidence suggests that state reporting programs have not effectively met their main objective: to identify and track uninsured motorists. These programs are costly, difficult to implement, hard to maintain, and a burden for insured drivers. Recent and ongoing advances in technology, such as web services and internet-based transaction processing may provide insurance carriers with an opportunity to provide online auto insurance verification to state jurisdictions.
These technological developments offer many benefits and reduce detriments to all stakeholders concerned with enforcing mandatory liability insurance laws. The Insurance Industry Committee on Motor Vehicle Administration (IICMVA) believes that web service technology should be explored as a solution to address the need by state agencies to verify auto insurance coverage.
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interest.
Mandatory liability insurance laws exist in 47 of the 50 states. Auto Liability Insurance Reporting (ALIR) programs, often referred to as State Reporting systems, are designed to enforce compulsory insurance laws in 23 states. Two new programs are currently in development (see Appendix A).
From an insurance company perspective, evidence suggests that state reporting programs have not effectively met their main objective: to identify and track uninsured motorists. These programs are costly, difficult to implement, hard to maintain, and a burden for insured drivers. Recent and ongoing advances in technology, such as web services and internet-based transaction processing may provide insurance carriers with an opportunity to provide online auto insurance verification to state jurisdictions.
These technological developments offer many benefits and reduce detriments to all stakeholders concerned with enforcing mandatory liability insurance laws. The Insurance Industry Committee on Motor Vehicle Administration (IICMVA) believes that web service technology should be explored as a solution to address the need by state agencies to verify auto insurance coverage.