HB611 Summary

• Establishes the Alabama Online Insurance Verification System to electronically verify motor vehicle liability insurance coverage during vehicle registration and re-registration through an advisory council of 13 members including Department of Revenue, Department of Insurance, and insurance industry representatives.

• Requires insurers to maintain data and web services compatible with the online verification system and allows the system to verify insurance status 24/7 using vehicle identification numbers, policy numbers, and NAIC numbers for matching accuracy.

• Mandates Department of Revenue verification of insurance before motor vehicle registration and re-registration; creates civil and criminal penalties including Class C misdemeanor charges and reinstatement fees ($200 for first violation, $500 for subsequent violations) for operating uninsured vehicles.

• Expands allowable evidence of financial responsibility to include commercial automobile liability insurance policies and authorizes law enforcement to verify insurance through the online system rather than requiring physical presentation of proof.

• Establishes penalties for insurance fraud, including Class C felony charges for altering or counterfeiting insurance cards, and allows insurance companies immunity from liability for good faith compliance efforts.