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Since the 1920ís, people who exercise their privilege to own and operate motor vehicles on United States roadways have been financially responsible for injuries or damages they cause. Today, compulsory auto liability insurance laws are in effect in all but three states. In order to enforce these laws, about half of the states have Auto Liability Insurance Reporting (ALIR) programs that require insurance companies to report information to their state department of motor vehicles either on paper or in electronic form. The format and schedule of frequency vary, and the items of data that the insurance companies are required to report range from just cancellations to their entire book of business. Despite compulsory insurance laws and the efforts to enforce them, uninsured rates average about 14% and are over 25% in some cases, according to a study by the Insurance Research Council.

Currently, almost all jurisdictions accept the insurance card issued by the insurance company as proof of insurance. However, if insurance has been cancelled, the card still exists. Also, it is easily duplicated with a computer and a printer. In some jurisdictions, the fines are so low that it costs less to pay the fines than buy insurance. In many cases, the lack of enforcement is due to unreliable data and the hesitancy of law enforcement to rely on it. Inaccurate data also can result in a burden for insured motorists who are accused of not having coverage. This wastes time and money for the motorist, the law enforcement officer, and the court.

According to the Insurance Industry Committee on Motor Vehicle Administration (IICMVA), from an insurance company perspective, state reporting programs have not effectively met their objective of identifying and tracking uninsured motorists. These programs are costly, difficult to implement, hard to maintain, and a burden for insured drivers. There are concerns about the accuracy, timeliness, and consistency of the data. According to the IICMVA, online verification promises to be a cost effective way to address the need to enforce mandatory insurance laws, benefiting the states, insurance companies, and consumers. An online inquiry gets the same response as someone picking up the phone and calling the insurance company to verify coverage.

VeriSol VIV Potential Benefits


   savings due to more accurate information, reduced need for systems infrastructure, reduced customer

   service time and paperwork, and reduced court time

   easily implemented software system that seamlessly integrates with other hardware and software

   more efficient, cost effective law enforcement

   increased income from fines, reinstatement fees, and taxes on premiums

   the potential for revenue from insurance companies and commercial applications if permitted by law

   positive public relations


Insurance Companies

   time savings due to more accurate information and reduced customer service time and paperwork

   reduced expenses for fraudulent claims

   no need for massive book of business transfers

   elimination of high costs for development, implementation, maintenance, and administration for multiple

   ALIR systems

   the opportunity to write more business

   positive public relations



   improved accuracy of verification data means fewer motorists that actually are insured will be


   reduced insurance fraud

   fewer uninsured drivers on the road

   the potential for lower insurance rates

   confidentiality of personal data and insurance information


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