Instant Auto Insurance Check For 6 States

By Daniel Hays

NU Online News Service, June 3, 4:19 p.m.EST?By 2003, police cruisers in six states should beconnected to a system allowing instant computer checks of theup-to-the-minute insurance status of a vehicle, the head of atechnology firm said today.

"Our belief is that six states will be in operation before theend of this year," said Jonathan Miller, president and chiefexecutive officer of InsureNet USA Inc., based in Atlanta.

Mr. Miller said auto insurers are looking forward to theimplementation of a computer-enhanced insurance checking system,which they expect to drive an increase in business. Additionally,he said that mortgage bankers have expressed interest in thetechnology to determine if insurance is being kept up on homes theyhave loans on.

His comments came as the company announced that they had justcompleted the nation's first proof of concept for its proprietaryinsurance verification system.

The InsureNet system, the company said, enables authorities toascertain the actual real-time status of a vehicle's insurancepolicy on the spot.

InsureNet said this would mean that a police officer for thefirst time could be certain, at roadside, that an insurance policyis current and valid on an up-to-the-minute basis.

Mr. Miller said the technology would allow a cop in a patrol carto tap a license number into an onboard computer for an insuranceverification procedure.

He said that Delaware police would use computers, but theInsureNet system can be used for verification using smart cardtechnology, mobile card readers, cellular communications and asecure verification system as well.

The company said the smart card bears a chip, which is encryptedwith 3DES security so it is virtually impossible to copy or tamperwith. The card readers can be used in police vehicles, courthouses,DMV offices, or anywhere else that real-time status of a driver'sinsurance is required. The system can also support the use of barcodes, radio readers, touch-tone telephones and othertechnologies.

InsureNet noted estimates that almost 48 million vehicles aredriven by uninsured motorists.

The InsureNet system was invented by Mr. Miller of InsureNet USAInc. and developed by the company's business partners-- eGlobalInternational Ltd.

InsureNet said its system does not divulge a driver's or vehicleowner's personal details but instead provides only real-time statusinformation--"active" or "inactive."

Additional details, such as the Vehicle Identification Number,policy number, and policy source are maintained in blind codes. Noinformation of a personal nature or information that may havecommercial value is ever kept by the system.

Mr. Miller said insurers liked this facet of the system becauseit would screen off the proprietary information in their databanks.

While a second level of proof-of-concept is now scheduled forthe state of Delaware, Greg Craven, eGlobal chief technologyofficer, who provided the test software and systems, said that heis delighted, though not surprised, at the success of the fieldtests recently conducted.

"The InsureNet system uses very reliable technology, so we knewthe tests would certainly be fine. They were, in fact, superb. Itwas really just a matter of providing an actual demonstration in alifelike environment," said Mr. Craven.

Mr. Miller said the first test involved plate numbers from 123vehicles.

The next test, InsureNet said, will use a police vehicle inthree different locations throughout Delaware to verify theinsurance status of 100 vehicle smart cards.

All of the cards in the first test accurately reported thereal-time status of the simulated policy without exception. Inactual practice this would allow the officer to take appropriateaction to impound the vehicle, issue a ticket, or make anarrest.

"We are certain that the InsureNet system will benefit almosteveryone in America. The only losers will be the criminals," saidMr. Miller. "The system obviously benefits insurance companies andgovernments, but it also has enormous long-term benefits tocitizens and the society as a whole."

Mr. Miller said that as part of an agreement to use Delaware asits national pilot, the company is allowed to use the state's name.Current arrangements do not permit him to name the other fivestates working with the company, he said.

Following the first year that the system is online, he said, hewould expect the initial boom in revenues from citations forfailure to insure would dry up.