La. Admin. Code tit. 55 § III-1754

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-1754 - General Information

A. Correcting No-Hits. A "Hit" is based on the VIN number. When the VIN does not match with the departments vehicle registration records and fails the VINA check, the record is coded "No-Hit" (Disposition code "U"). In accordance with these rules and regulations, the security provider (insurance company) has 15 business days from the return date of the filing to correct the VIN information and resubmit. If a company provides a VIN for a 1981 or newer vehicle and the departments VINA check determines that the VIN is valid, but the VIN is not available from the departments vehicle registration records, the record is returned as a "Restricted Hit". (Disposition code "R").

B. Reporting an Initiation of Coverage and Cancellation of Coverage at the Same Time. The last record received from a company for a vehicle is considered to reflect the status of the vehicle with the company. Multiple filings for a single vehicle having the same company code and owner-ID will result in the last record received being maintained by the department. Receiving records out of order remains a problem with many companies and may result in cancellation notices being sent to individuals who have insurance. All records must be submitted in chronological order.

C. Recalling Notification. When a security provider discovers that a cancellation or initiation of coverage was reported by mistake, the security provider shall submit to the department a notice of recall of notification. All of the data except the transaction type shall be the same as originally submitted in order to match the recall with the notification. A transaction type "B" will recall an initiation ("A"). A transaction type "1" will recall a termination ("0").

D. Warning on Notice of Acknowledgment of Termination to Insured. The notice of acknowledgment of termination sent to an insured shall contain the following warning notice:

1. If you do not keep your liability insurance in force during the entire registration period, your registering privileges will be subject to revocation. By law your insurance carrier is required to report specific termination information to the Commissioner of the Department of Public Safety and Corrections.

E. Timely Insurance Filings. In accordance with these rules and regulations, the security provider must notify the department when motor vehicle security is begun, issued or procured or after motor vehicle security is ended, recalled, reinstated, terminated, canceled or changed from a binder status to an active policy number Such notification must be made within 15 business days from the issue date. The security provider has 15 business days from receipt of the departments returned filings to correct any "No-Hit" records and resubmit. Termination filings received prior to the effective date will result in an edit error (Disposition code "E"). An edit error is not an acceptable filing. Edit errors must be corrected and resubmitted. It is the responsibility of the insurance company or servicing agent to review and take the necessary corrective action as required by these rules and regulations. An initiation or termination filing will be considered late if the date received is more than 15 business days after the issue date. Any filings considered late will be returned with the LATE-FLAG set to "Y".

1. Possible Policy Scenarios. If a policy lapses and is then later reinstated, with a lapse, submit a termination. Whenever the policy is re-issued, send in the initiation with the new initiation date, not the date that the policy was initially issued.

a. If insurance coverage lapses and is reinstated without a lapse and a termination has been submitted, recall the termination. Do not send in a new initiation.

b. If insurance coverage lapses and is reinstated without a lapse and a termination was not submitted, no filings are required. Only valid terminations should be reported.

c. If the policy number changes or if the policy is renewed without any owner ID or vehicle or company (NAIC number) changes, then a filing is not required.

2. The department will monitor this area of the reporting requirements. Those security providers who violate this provision will be subject to possible fee assessments.

F. Manual Filings. Effective January 1, 2005 the department will no longer accept manual filings.

G. Fleet Filings-Guidelines for Fleet Filings

1. Eligibility. Any insurance company writing motor vehicle liability insurance in Louisiana and insuring a fleet of five or more vehicles registered in Louisiana for which VIN information is not maintained on each vehicle must electronically report said fleet coverage as specified in these rules and regulations. If the insurance company maintains the VIN number of each vehicle within the fleet, the filing must be reported on a vehicle by vehicle basis.

2. Conditions of Filing. A security provider must notify the department after motor vehicle liability security is begun, ended or in certain ways modified. Such notification shall be made within 15 business days of the issue date of initiation termination of coverage. After the initiation has been reported, the cancellation is not to be reported until the entire Fleet policy has been canceled. (Do not report the addition or deletion of individual vehicles.)

3. Format. Each notification must be transmitted electronically using the formats provided in these Rules and Regulations.

4. Number of Vehicles. The estimated number of vehicles in a fleet is reported in lieu of VIN information on a vehicle by vehicle basis.

H. Fee Assessments

1. The Louisiana Department of Public Safety and Corrections is charged with administering and enforcing all compulsory insurance provisions. In so doing, we must rely on the cooperation of the insurance industry to provide timely, complete and accurate information in accordance with R.S. 32:863.2 and these rules and regulations.

2. Failure to report the required information and/or failure to report the required information timely can result in the insurance company being assessed a fee. If any of acceptable filings (Disposition codes Hit and Restrict Hit) are considered late, a fee of $50 may be assessed for each of these late filings. A fee of $50 may be assessed for each failure to report.

3. This states vehicle registration records will be checked against liability security insurance records on an ongoing basis. Fees will be assessed to those companies in non-compliance with the statute and these rules and regulations. Further, in cooperation with the Department of Insurance, continuous violations and non-compliance could result in additional administrative or judicial action.

4. Fees will not be assessed to those security providers who continue to report all insured vehicles, as well as reporting them in a timely manner.

I. Transaction Types and How They are Used. Described below are the transaction types and how each may be used:

1. 0-Termination. A termination or cancellation notice is submitted whenever liability security is canceled or terminated.

2. 1-Recall of Termination. The recall of transaction type "0" is used whenever a cancellation notice has previously been sent in error.

Example: A cancellation notice was incorrectly reported. The cancellation date was reported as February 2 instead of February 13. A recall of the February 2 cancellation notice is submitted followed by a cancellation notice having a cancel date of February 13.

3. 6-Termination for NSF Check. A termination or cancellation notice pursuant to this code is submitted whenever a security provider backdates the effective date of a cancellation because the insurer paid with a check that was returned by the bank more than 15 days after the effective date of the policy.

4. 7-Termination for Rescinded/Canceled Sale. A termination or cancellation notice is submitted whenever liability security is canceled or terminated as a result of a rescinded or canceled sale of the vehicle.

5. A-Initiation. An initiation notice is submitted whenever liability security is initiated (new business) on a vehicle. If there is a lapse in coverage, a termination notice must be submitted followed by an initiation notice showing the new initiation or reinstated date.

6. B-Recall of Initiation. The recall of transaction type "A" is used whenever an initiation notice is submitted in error.

Example: An initiation notice was incorrectly reported. The starting date was reported as February 2 instead of February 13. A recall of the February 2 initiation notice is submitted followed by an initiation notice having a starting date of February 13.

7. F-Change. A change notice is submitted only for changing the policy number from "BINDER" to an active policy number.

Example: An initiation notice was submitted with a policy number of "BINDER". A change notice is submitted with an active policy number.

J. Disposition Codes. Described below are the disposition codes returned and how they are used.

1. D-Duplicate Reporting. This record was previously reported to the department with the same information. This record has been rejected by the department. It is not necessary to re-report the same record again after it was successfully reported.

2. E-Edit Error. This record is not acceptable due to the absence of information in a required field or invalid information in a field. This record has been rejected by the department. The EDIT-ERROR-MASK field needs to be evaluated to determine the field(s) that requires amendment. After the field(s) have been corrected this record shall be re-reported.

3. H-Hit. This record has been accepted by the department. This records VIN matches a vehicle that requires compulsory liability security and is currently registered in Louisiana.

4. I-Incorrect Vehicle "Type Use" or "Class". This record has been rejected by the department. The "type use" or "class" of this vehicle record is such that it does not have to be reported to the department. An example of this type of vehicle is a trailer.

5. P-Prescribed. This record is not acceptable because the date in the TERMINATION-OR-CHANGE-OR-EFFECTIVE-DATE or ISSUE-DATE field is more than 18 months old. This record has been rejected by the department.

6. R-Restricted Hit. This record has been accepted by the department. The VIN of this record does not match a vehicle currently registered in Louisiana that requires compulsory insurance; however, the VIN reported passes the VINA edit routine. This record should be verified using the vehicle registration certificate.

7. S-Sequence Error. This record has been rejected by the department. The record has been reported out of sequence. Examples are: reporting a transaction type "0" (termination) prior to having reported a transaction type "A" (initiation). Records shall be reported in chronological order.

8. U-No-Hit. This record has been rejected by the department. The VIN of this record does not match a vehicle currently registered in Louisiana. The VIN does not pass the VINA edit routine. The record should be verified using the vehicle registration certificate.

K. Contact Person Information

1. Certain information is needed periodically by this agency to facilitate communication with security providers. The contact information sheet is to be completed and returned to the department during the month of January each year and whenever there is a change involving contact personnel. A contact information sheet shall be submitted for each insurance company.

2. Please furnish the name of the representative responsible for compliance:

a. administrative reporting requirements;

b. information technology/information services/data processing;

c. commercial lines;

d. personal lines;

e. fleet filings;

f. other personnel responsible for filings or fee assessment.

L. Contact Person Information Sheet (CPIS). A CPIS shall be completed by every insurance company:

CONTACT PERSON INFORMATION SHEET

LA. OFFICE OF MOTOR VEHICLES

COMPULSORY INSURANCE UNIT

P.O.BOX 64886

BATON ROUGE, LA 70896

Certain updated information is needed periodically by this agency in order for us to contact the correct person within your insurance company to provide the most updated information or to correct problem areas.

The contact information sheet is to be completed and returned to this department. The contact sheet must be submitted during the month of January each year and whenever there is a change in any of your companys contact personnel.

A contact information sheet must be submitted for each insurance company.

Please furnish the name of the representative for compliance with administrative reporting requirements, data processing, commercial lines, personal lines, fleet filings and other personnel responsible for filings or fee assessments.

This information will assist us in contacting your companys representative(s) in regard to specific compliance regulations:

NAIC#	NAME OF INSURANCE COMPANY
ADMINISTRATIVE COMPLIANCE	DATA PROCESSING
NAME:	NAME:
ADDRESS:	ADDRESS:
PHONE: ()	PHONE: ()
FAX: ()	FAX: ()
E-MAIL ADDRESS:	E-MAIL ADDRESS:
AREA OF RESPONSIBILITY	AREA OF RESPONSIBILITY
NAME:	NAME:
ADDRESS:	ADDRESS:
PHONE: ()	PHONE: ()
FAX: ()	FAX: ()
E-MAIL ADDRESS:	E-MAIL ADDRESS:

La. Admin. Code tit. 55, § III-1754

Promulgated by the Department of Public Safety and Corrections, Office of Motor Vehicles, LR 30:2845 (December 2004), Amended LR 412669 (12/1/2015).

AUTHORITY NOTE: Promulgated in accordance with R.S. 32:863.2.