Can the Mississippi Insurance Commissioner require auto insurers to send driver coverage data daily, and can a state agency share that data with a third-party vendor?

Plain-English summary

Mississippi runs a Motor Vehicle Insurance Verification System (MVIVS), a state-run database that lets law enforcement and the courts check whether a particular vehicle has the legally required liability insurance. The system is set up by the Public Safety Verification and Enforcement Act, §§ 63-16-1 et seq. The Department of Public Safety (DPS) operates it, with cooperation from the Department of Insurance and the Department of Revenue.

Insurance Commissioner Mike Chaney asked the AG two operational questions:

1. Can the Insurance Commissioner require insurers to send a "data dump" of motor vehicle liability policies on a yearly, monthly, or weekly basis?

No. The Insurance Commissioner has the legal authority to cooperate in the MVIVS system but does not have authority to require insurers to provide policy data. That authority sits with DPS. Both § 63-16-3(3)(f) and § 63-16-7(2)(d) cap the data-pull frequency at "not more often than every thirty (30) days." So even DPS cannot demand more than monthly data from insurers. Weekly is not allowed.

2. Can a state agency release MVIVS information to a third-party vendor?

Yes, but only if DPS authorizes the release under its rules. Section 63-16-3(3)(c) lists who can access MVIVS without a fee: department personnel, courts, law enforcement, "and other entities authorized by the department under the provisions of Section 63-16-7." DPS is the gatekeeper. A third-party vendor could be authorized, but it requires DPS rulemaking and an authorization act, not just an Insurance Commissioner decision.

The opinion is a clean read of the statute that puts most of the operational authority in DPS's hands, with the Insurance Commissioner cooperating but not directing. That allocation matters because DPS's authority is constrained by the 30-day cap, so neither agency can insist on more frequent data flows from insurers.

What this means for you

If you administer auto insurance compliance for an insurance carrier

The opinion holds insurer data is received "not more often than every thirty (30) days" (§§ 63-16-3(3)(f), 63-16-7(2)(d)), and that "no insurer shall be required to provide information in a format other than those set forth by the Insurance Industry Committee on Motor Vehicle Administration 'Insurance Data Transfer Guide.'"

If you are at the Mississippi Department of Insurance

The opinion holds the Commissioner of Insurance "has the legal authority to cooperate in the establishment of the MVIVS system but not to require insurers to provide motor vehicle liability policy status information" (§ 63-16-3(1)). It places the directive authority with DPS.

If you are at the Mississippi Department of Public Safety

The opinion holds DPS "has the authority to direct the MVIVS program and promulgate its rules," subject to the 30-day cap on receiving insurer data. It holds MVIVS information "may be released to private entities if and when such action is authorized by DPS in accordance with its rules as set forth in Sections 63-16-3 and 63-16-7."

If you are a third-party vendor

The opinion holds MVIVS is accessible "to authorized personnel of the department, the courts, law enforcement personnel, and other entities authorized by the department under the provisions of Section 63-16-7," and that release to a private entity is permitted only "if and when such action is authorized by DPS in accordance with its rules."

Common questions

Q: Who is in charge of MVIVS, DPS or the Insurance Department?
A: The opinion holds DPS, "in cooperation with the Commissioner of Insurance and the Department of Revenue," establishes MVIVS, and that DPS "has the authority to direct the MVIVS program and promulgate its rules." The Commissioner of Insurance has authority to "cooperate," not to direct.

Q: How often can insurers be required to provide data?
A: The opinion holds insurer data is received "not more often than every thirty (30) days," citing both § 63-16-3(3)(f) and § 63-16-7(2)(d).

Q: What data format can insurers be required to use?
A: Per the statute the opinion quotes, "no insurer shall be required to provide information in a format other than those set forth by the Insurance Industry Committee on Motor Vehicle Administration 'Insurance Data Transfer Guide,' as amended."

Q: When can a third-party vendor receive MVIVS data?
A: The opinion holds release to a private entity is permitted "if and when such action is authorized by DPS in accordance with its rules as set forth in Sections 63-16-3 and 63-16-7." It does not address what a vendor may do with the data once authorized.

Background and statutory framework

The Public Safety Verification and Enforcement Act, §§ 63-16-1 et seq., creates the framework. The agency allocation, § 63-16-3(1):

[DPS], in cooperation with the Commissioner of Insurance and the Department of Revenue, shall establish [MVIVS], a database for verifying a motor vehicle's compliance with Mississippi's mandatory insurance laws.

The data frequency cap, § 63-16-3(3)(f):

Not more often than every thirty (30) days, receive insurance information from insurers under specifications and standards set forth in paragraph (a) of this subsection or other data file formats as approved by the department to identify motor vehicle insurance policy information; however, no insurer shall be required to provide information in a format other than those set forth by the Insurance Industry Committee on Motor Vehicle Administration "Insurance Data Transfer Guide," as amended.

DPS rulemaking authority, § 63-16-7:

(1) The Department of Public Safety . . . shall administer and enforce the provisions of this chapter, as applicable, and shall make rules necessary for the administration of the motor vehicle insurance verification system created under Section 63-16-3.

DPS rule requirements, § 63-16-7(2)(d), repeating the 30-day cap:

Provide for insurance information from insurers, not more often than every thirty (30) days, to identify motor vehicle insurance policy information; however, no insurer shall be required to provide such information in a format other than those set forth by the Insurance Industry Committee on Motor Vehicle Administration "Insurance Data Transfer Guide," as amended.

Authorized users of MVIVS, § 63-16-3(3)(c):

[B]e accessible, without fee, to authorized personnel of the department, the courts, law enforcement personnel, and other entities authorized by the department under the provisions of Section 63-16-7.

So DPS has the authorization gate for "other entities," which is the path for third-party vendors.

Citations

• Miss. Code Ann. §§ 63-16-1 et seq.
• Miss. Code Ann. § 63-16-3(1)
• Miss. Code Ann. § 63-16-3(3)(c), (f)
• Miss. Code Ann. § 63-16-7
• Miss. Code Ann. § 63-16-7(2)(d)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2024/05/M.Chaney-May-21-2024-Data-Transfer-for-the-Motor-Vehicle-Information-Verification-System.pdf

Original opinion text

May 21, 2024
The Honorable Mike J. Chaney
Commissioner of Insurance
State of Mississippi
501 North West Street, Suite 1001
Jackson, Mississippi 39201
Re: Data Transfer for the Motor Vehicle Information Verification System

Dear Commissioner Chaney:
The Office of the Attorney General has received your request for an official opinion.

Questions Presented

1. Does the Commissioner of Insurance have the legal authority to require insurers to provide motor vehicle liability policy status information, referred to in your request as a "data dump", on a yearly, monthly, or weekly basis?
2. May a state agency release motor vehicle liability policy status information provided by insurers to a third-party vendor, and if so, under what circumstances?

Brief Response

1. Statutorily, the Commissioner of Insurance has the legal authority to cooperate in the establishment of the Motor Vehicle Insurance Verification System ("MVIVS") but not to require insurers to provide motor vehicle liability policy status information. Rather, pursuant to Mississippi Code Annotated Sections 63-16-3(3)(f) and 63-16-7(2)(d), the Department of Public Safety ("DPS") has the authority to direct the MVIVS program and promulgate its rules, which includes mandating the receipt of insurance information "not more often than every thirty (30) days."
2. Information recovered from MVIVS may be released to private entities if and when such action is authorized by DPS in accordance with its rules as set forth in Sections 63-16-3 and 63-16-7.

Applicable Law and Discussion
The Public Safety Verification and Enforcement Act is set forth in Sections 63-16-1, et seq. Pursuant to Section 63-16-3 therein, DPS, in cooperation with the Commissioner of Insurance and the Department of Revenue, shall establish MVIVS, a database for verifying a motor vehicle's compliance with Mississippi's mandatory insurance laws. Section 63-16-3(3) sets forth various statutory requirements for MVIVS. Among these, Section 63-16-3(3)(f) provides that MVIVS must:

Not more often than every thirty (30) days, receive insurance information from insurers under specifications and standards set forth in paragraph (a) of this subsection or other data file formats as approved by the department to identify motor vehicle insurance policy information; however, no insurer shall be required to provide information in a format other than those set forth by the Insurance Industry Committee on Motor Vehicle Administration "Insurance Data Transfer Guide," as amended.

Further, Section 63-16-7 states that DPS "shall administer and enforce the provisions of this chapter, as applicable, and shall make rules necessary for the administration of the motor vehicle insurance verification system created under Section 63-16-3." Section 63-16-7(2) lists the requirements for said rules, including a requirement that the rules:

(d) Provide for insurance information from insurers, not more often than every thirty (30) days, to identify motor vehicle insurance policy information; however, no insurer shall be required to provide such information in a format other than those set forth by the Insurance Industry Committee on Motor Vehicle Administration "Insurance Data Transfer Guide," as amended.

You ask if the Commissioner of Insurance has the legal authority to require insurers to provide motor vehicle liability policy status information on a yearly, monthly, or weekly basis. Statutorily, the Commissioner of Insurance has the legal authority to cooperate in the establishment of the MVIVS system but not to require insurers to provide motor vehicle liability policy status information. Miss. Code Ann. § 63-16-3(1). Instead, DPS has the authority to direct the MVIVS program and promulgate its rules, which includes mandating the receipt of insurance information "not more often than every thirty (30) days." Miss. Code Ann. §§ 63-16-3(3)(f) and 63-16-7(2)(d).

Next, you ask if a state agency may release motor vehicle liability policy status information provided by insurers to a third-party vendor, and if so, under what circumstances. Section 63-16-3(3)(c) provides that MVIVS must "[b]e accessible, without fee, to authorized personnel of the department, the courts, law enforcement personnel, and other entities authorized by the department under the provisions of Section 63-16-7." Moreover, Section 63-16-7 gives DPS broad authority over the administration and enforcement of MVIVS and grants DPS the power to enact rules for the same:

(1) The Department of Public Safety . . . shall administer and enforce the provisions of this chapter, as applicable, and shall make rules necessary for the administration of the motor vehicle insurance verification system created under Section 63-16-3.
...
(3) The department may adopt additional rules to:
(a) Assist authorized users in interpreting responses received from the motor vehicle insurance verification system and determining the appropriate action to be taken as a result of a response; and
(b) Otherwise clarify system operations and business rules.

Given these provisions, information recovered from MVIVS may be released to private entities if and when such action is authorized by DPS in accordance with its rules as set forth in Sections 63-16-3 and 63-16-7.

If this office may be of any further assistance to you, please do not hesitate to contact us.

Sincerely,
LYNN FITCH, ATTORNEY GENERAL
By: /s/ Maggie Kate Bobo
Maggie Kate Bobo
Special Assistant Attorney General