2005 South Carolina Code of Regulations § 90-012. — Other Types of Transactions.
(Unannotated)
Current through State Register Volume 29, Issue 10, effective October 28, 2005.
This regulation database is current through State Register Volume 29, Issue 10, effective October 28, 2005. Changes to the regulations enacted by the 2006 General Assembly, which will convene in January 2006, will be incorporated as soon as possible. Some regulations approved by the 2006 General Assembly may take immediate effect. The State of South Carolina and the South Carolina Legislative Council make no warranty as to the accuracy of the data, or changes which may have been enacted since the 2005 Regular Session or which took effect after this database was prepared and users rely on the data entirely at their own risk.
CHAPTER 90.
DEPARTMENT OF MOTOR VEHICLES
ARTICLE 1.
MOTORIST INSURANCE IDENTIFICATION DATABASE
(Statutory Authority: 1976 Code Section 56-10-640)
90-001. Introduction.
The South Carolina (SC) Department of Motor Vehicles (DMV) is implementing the South Carolina Automobile Liability Insurance Reporting (SC ALIR) System that collects automobile liability insurance information from insurers that are licensed to provide automobile liability insurance in the state. The DMV will cross-reference the collected information to South Carolina driver and vehicle data to identify registered vehicles that do not meet the minimum automotive liability insurance requirements of the state.
90-002. Definitions.
A. Cancellation or Refusal to Renew Date is the date provided in the notice required by Section 38-77-120.
B. Implementation Guide is the document developed by the Working Group to govern the policies and procedures required for the administration of the SC ALIR.
C. Newly Licensed Driver's List is the list defined in Section 56-10-640 and will be provided to insurers for a fee prescribed by the Department.
D. SR-22 is the notification filed with the department to show proof of future financial responsibility as required by section 56-9-550.
E. SR-26 is the notification filed with the department to show that an insurer has cancelled the financial responsibility coverage as required in 56-9-550.
F. Compliance Transaction is a transaction reporting insurance coverage subsequent to a DMV suspension notice.
G. Agency Reporting System is a system that allows insurance agencies to report compliance transactions using the SCALIR web interface.
90-003. Method of Communication Options for Insurers.
A. The SC ALIR System will provide insurers with the following options for data communications with the SC ALIR System for reporting cancellation and compliance transactions.
(1) Internet File Transfer Protocol (FTP) accepting both Electronic Data Interchange (EDI) and Text document.
(2) Value Added Network (VAN) accepting EDI documents.
(3) Internet Hyper-Text Transfer Protocol (HTTP) or Web accepting direct data entry.
(4) Other forms of communication approved by the Department in the Implementation Guide, upon recommendation of the Working Group.
B. During registration with the SC ALIR System, each insurer will select the communication. This selection applies to both sending data to the SC ALIR System and receiving data from the system. During registration, each insurer will also select the data document type to be exchanged with the system, based on the selected communication option.
C. Insurers will be responsible for the costs associated with programming their systems to utilize the options for data communications with the SC ALIR System.
90-003.1. File Transfer Protocol (FTP) Data Communication.
Insurers that wish to transmit large files to the SC ALIR System without incurring the costs of a VAN may use the FTP option. Secured FTP accounts and folders will be created within the SC ALIR System for the insurers that choose the FTP option while registering with the SC ALIR System. Login, folder structure and other necessary information will be provided to insurers to allow access their specific folders.
90-003.2. Value Added Network (VAN) Data Communication.
Insurers may select the VAN option. Insurers using the VAN option will have to set up mailboxes and communications. Insurers utilizing the VAN option will be required to pay an additional fee which will be placed by the Comptroller General into a special restricted account to be used by the Department to defray its expenses in administering this program.
90-003.3. Web Data Communication.
For low reporting volumes, insurers may prefer the option of entering data directly on the SC ALIR System's secure website. All registered users will have the ability to submit data over the web. However only users that have selected Web as the communication option will be able to retrieve Error Transactions via the web. After insurers have successfully registered, they will be provided with a unique user name and password to access the secure website. The confidentiality and continued security of the username and password will be the insurer's responsibility.
90-004. File Formatting Options.
Insurers submitting data using FTP will have the option of submitting either text or EDI files. Insurers using the VAN will only be able to submit EDI files. The file formatting option will be selected during registration.
90-004.1. Electronic Data Interchange Documents.
The SC ALIR System supports the American National Standards Institute, Accredited Standards Committee (ANSI ASC) X12 Standard, Transaction Sets 811 and 997, Release 3050. This standard has been identified for use in state government ALIR applications by insurance industry trade groups such as the Insurance Industry Committee on Motor Vehicle Administration (IICMVA) and is already in use by some other state DMVs for Automobile Insurance Liability Reporting.
90-004.2. Text Documents.
Insurers will have the alternative of using Text data interchange with the SC ALIR System. A Text data interchange format will be specified to support the needs of the SC ALIR System.
90-005. Data Security.
A. FTP
The SC ALIR System will implement FTP using a Secured Sockets Layer (SSL) enabled FTP server and a PGP option will also be provided. An SSL enabled FTP client is required to exchange files with the server. The SC ALIR Program will supply an SSL enabled FTP client for the Microsoft Windows family of operating systems on request of any insurer.
B. Web
All data submitted/retrieved over the web will also be encrypted using SSL.
C. VAN
The Value Added Network is a private network that ensures data security.
90-006. Types of Transactions.
A. Insurers will report the following types of transactions:
(1) All mid-term non-pay cancellations.
(2) All mid term cancellations where an insured requests cancellation of the policy before the policy has expired.
(a) The following instances in this category DO NOT need to be reported:
(1) The insured produces satisfactory proof from the Department that he has sold or otherwise disposed of the insured vehicle or surrendered its tags and registration;
(2) The insured has secured another policy that meets the financial responsibility requirements prescribed in the law;
(3) The insured has sold a vehicle previously covered and is switching coverage to a newly purchased vehicle (Drop/Add transaction)
(3) All non-renewals for underwriting reasons by the insurer.
(4) All FR4a compliance transactions for new/renewed policies that have been added/reinstated in response to FR-4 notices (Compliance Reporting).
B. The following transactions may be reported by insurers, but only over the web:
(1) Add SR 22 Filing
(2) SR 26 Policy Cancel
(3) Cancel Vehicle from SR 22 Filing
C. Only the following types of transactions may be reported by agencies:
(1) All FR4a compliance transactions for new/renewed policies that have been added/reinstated in response to FR-4 notices (Compliance Reporting).
90-007. Types of Policies.
A. Only private passenger automobile liability policies for vehicles registered and insured in South Carolina will be reported.
B. No commercial vehicle policies will be reported.
90-008. Data Elements.
The insurers will report the data elements defined in the Implementation Guide.
90-009. Implementation Guide.
The Implementation Guide will be revised as necessary, upon recommendation of the Working Group. Insurers will be provided with a minimum of ninety days notification of changes to the Implementation Guide.
90-010. Compliance Reporting.
Insurers or agencies must begin reporting compliance transactions electronically with the implementation of these regulations. Insurers have the option of reporting these transactions through the insurer's own system, or by allowing their agencies to report individual transactions using the SC-ALIR website.
90-010.1. Reporting Options for Compliance Reporting.
A. Insurers. If the insurer-level option is chosen, insurers have the option of using any SC-ALIR reporting methods to report these transactions (also referred to as FR4a transactions) on the insurer level. Reference the South Carolina Automobile Liability Insurance Reporting (SC ALIR) System Implementation Guide for Insurance Companies, (section dealing with compliance transactions).
B. Agencies. If agencies report compliance transactions on behalf of insurers, insurance agencies may report individual compliance transactions after registering on the SC-ALIR website. Complete registration details can be found in the South Carolina Automobile Liability Insurance Reporting (SC ALIR) System - Supplemental Information Guide for Agencies - Agency Reporting.
90-011. Frequency of Reporting.
A. Notices of Cancellation/Refusal to Renew (FR4). Insurers must submit cancellation transactions using the SC ALIR system on an as-needed basis, as frequently as required to ensure that DMV receives notice of cancellation immediately after the insurer determines the customer to be ineligible for reinstatement, according to the insurer's own business practices.
(1) If no cancellations are processed within a given reporting month, insurers must transmit a "no activity" report at least once within a 30-day period.
B. Compliance Transactions. In order to prevent unnecessary suspension actions from taking place, insurers or their agencies must submit compliance transactions on a daily basis, or as frequently as they occur, using the reporting options described in 90-010 above.
90-012. Other Types of Transactions.
The Working Group may direct that enhancements be made to the SC ALIR system that would allow insurers or agencies to report other types of insurance or compliance transactions. Details of these enhancements will be documented in Supplementary Implementation Guides that will be available to insurers and their agencies through posting on the SC ALIR website. The website address is www. sc-alir.com.
Insurers will be provided with a minimum of ninety days notification of changes to the Implementation Guide.
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