How does it work?
First, the system is hosted and controlled by Nlets, the Nation’s Law Enforcement Communications System. Nothing is more secure and safe. It is linked to every state, Provinces of Canada, the FBI, INTERPOL, and other Law Enforcement Agencies and Organizations. It is also linked to NICB, (National insurance Crime Bureau), which operates on behalf of the Insurance Industry.

Next, much of the data received and maintained by insurers is inaccurate; in fact the only data that they can be absolutely certain of is the policy number because they issued it. Much of the data received and maintained by governments is also inaccurate, (in fact, it is estimated that thirty percent of all Vehicle Identification Numbers maintained by State governments are wrong), and, similar to the situation with insurers and policy numbers, the only field they can be certain of is the registration number because that government issued it. InsureNet is simply the "perfect bridge" between insurers and governments. Using our proprietary, (patent pending), "clean bridge" technology, all concerns regarding inaccurate VINs and the need for many fields of invasive, personal data to try and match policies to vehicles, disappears due to our "UC" or "Unique Code", described below.

During the initiation of an "Add", (the addition of a new vehicle to an existing policy or a new vehicle insurance policy), policy information is entered by the Agent, Broker, Customer Service Representative, or by an automated internet-based system. This application is either accepted or rejected by the insurer's system or representative. If rejected, InsureNet remains unaware of the application. If accepted, the vehicle's VIN (Vehicle Identification Number) and policy number combination is automatically assigned a unique all-digit code that may be also linked to other identifiers, such as the State and insurance company. This assignment is done assignment might also be done by the insurer or an authorized insurer association using blocks of UCs obtained via secure portals. All data is kept in "blind code" so that even if every security measure in this most secure of all facilities failed, the data would be seen by a hacker only as "gibberish" and impossible to manipulate or modify in any way, but again…..since 1961, no one has ever “broken in” to this data center.

The code, ("UC" or "Unique Code"), assigned, is used to ensure that vehicle registrations and any other status checks result in totally accurate status. Status is always current to that very minute. Status can be provided to any law enforcement officer anywhere in the nation checking a vehicle's registration, to the courts using special "readers", or by calling an "800" telephone number and entering the UC verbally or by "touch tone", and also by using a computer or PDA. Courts get current insurance status, status the date of citation and, to eliminate back-dated policies, status the date prior to citation.

What does 'non-invasive' really mean?
InsureNet does not require and does not receive personal information of any kind. This unique approach has gained the support of privacy groups and demonstrates that it is possible to use systems capable of properly enforcing compliance with the law while not invading the privacy of individuals or insurers in any manner. This system creates certain reports, (for example, when three or more insurers have insured the same vehicle, which almost certainly identifies a "repair scam"). In that case, the system automatically sends out notices to the governments and insurers involved, but this and other reports never require personal details.

Who pays for it?
The InsureNet system makes and/or saves money for every participant. Policyholders, Governments, Law Enforcement, the Courts, Registration/DMV Offices, Insurance Agents and Insurance Companies are all substantial beneficiaries. No Law Enforcement entity ever pays in using this system to protect the Public. Likewise, the Public itself never pays. For any other entity that might pay, the cost will always be only a small fraction of demonstrable savings. There is NO NET COST to anyone or any entity. Optional, non-invasive reports of great value to the insurance industry are available, but again, these are optional. There may be other sources of revenue, but again, no insurer pays to lodge data and no Law Enforcement Agency or Officer ever pays for use. With market forces at work, the new funds that are created for the government, insurers and agents, will eventually reduce the financial burden placed on policyholders to insure vehicles; everyone benefits from InsureNet.

What if I am traveling in another State?
If you are stopped in a another State and assuming your state and/or you insurer is then interfaced to the Nlets National Insurance System, your insurance status can be instantly and accurately verified by the law enforcement officer involved. Nlets is owned by all US States, Puerto Rico and the District of Columbia. It currently handles out-of-State transmissions regarding driver's licenses and vehicle registrations. Over 81 million transactions are handled monthly.

Do All Insurers Embrace this System?
They should, but unfortunately some insurers pay management on market share, and are not positioned initially to gain many new policyholders. As risk pools grow, those managers make less income. Likewise, some insurers still believe that insurance should not be mandatory and especially resist government reporting requirements and accountability. All that said, insurers which evaluate the system and consider its vast benefits, embrace it and as they participate the benefits of a national system continue to grow dramatically. Insurers which understand the benefits, wish to dramatically increase their ROI long-term, and wishing to enable their policyholders and Agents to also benefit, will ensure acceptance and use by all insurers. They can’t afford to be left behind.

How does it force people to buy insurance?
Vehicle insurance is required in every state. Sometimes called “Financial Responsibility”, it is still insurance. With InsureNet, requirements will be fully enforceable for the first time. Whenever a law enforcement officer verifies the status of vehicle registration, insurance status is supplied automatically. Registration, (both counter and "e" registration), can also be easily and automatically linked, ensuring that no registration is possible without current, valid insurance; in fact, this is the only possible method ever devised to ensure accurate "e" registration. Likewise, safety and/or emission control stations, toll booths, linked traffic cameras and other sites can automatically check for insurance status without the requirement for names, addresses, or any other personal details. It is after all, not a person that is insured, but a vehicle. This is a complete, accurate, secure…..yet totally non-invasive system. There is no delay and no excuses with InsureNet. Registration without valid insurance is simply impossible.

Can this be just a "Law Enforcement" System?
Yes, in fact any Government entity or any individual insurer can implement the system, and do so almost immediately. They do so with little or no cost or trauma and yet will enjoy immediate, massive benefits. A State Police organization, for example, can via Nlets, ensure that all Law Enforcement personnel with access to their system can know, with absolute certainty, the insurance status of every vehicle whose registration is checked and, with nightly data feeds, have reliable results that are never more than 24 hours old.

Can this be just an "Insurer" System?
Yes, an insurer can provide ID cards with both the UC which is unique to each policy and VIN along with an "800" number and email address that allows any policyholder, or anyone given an ID card by a policyholder, to verify status at any time. The system is available in English, Spanish and French. It can be used to confirm to a policyholder that he or she has remembered to pay for their policy, to report an accident, theft or other emergency, and to provide to Law Enforcement, the Courts or to another driver the proof that they are in compliance with the law. This then, is a system fully supportive of both insurers and law enforcement. These features are not required but optional. Some insurers want them while others have clearly stated they do not; it is their choice.

What happens if criminals copy the cards?
While no ID card is actually required by the system, registration can certainly not take place and uninsured status is instantly known if checked by law enforcement or the courts anywhere in the nation…with or without the card. The system will automatically return a "no record" response, alerting everyone. It will soon be understood as most unwise to try and use any form of fraudulent card; there is no way to circumvent the InsureNet.

How does the system know if the card is fraudulent?
If someone attempts to use a fake card in the registration or verification process, the system immediately identifies it as such. Only documents which either identify "active" or previous and now "inactive" coverage, are maintained in the system. All other queries will return a "no record" response. If either an "active" or "inactive" response should be delivered, a special warning is also provided to law enforcement, the courts, or other authorized user.

Why is this called the "National Insurance Status System"?
Because it is. This is not limited to a single company or group of companies, it is operational "24/7/365", not just at certain times, not limited to a single State but available to all jurisdictions, is based on a total "dump" technology which frees insurers from having to sort by States, (they simply send all daily activity to it), it is available for use to every law enforcement officer in the United States without cost, and also to every person in the United States free of charge via telephone or the internet. It is the first and only "National Insurance Status Database" in every possible regard, is accurate, non-invasive and complete and is certain to dramatically benefit the Nation.

If someone had insurance but did not renew, how does the system know?
Less than two dozen of the over 5,000 Property and Casualty Insurers in the U.S. account for over 80% of all volume. In order to accommodate certain states, those insurers are now providing daily electronic updates to states nationally. InsureNet takes data in any format and enables currently non-reporting insurers to also easily handle needs and enjoy dramatic benefits without cost. At least once each day the insurer's system automatically and without effort on the part of that insurer, will provide a list of "deletes", (suspensions, terminations, and/or cancellations). Because insurers' "deletes" only take effect once each day, the moment the system is notified, status is changed and/or the change is "logged", preparing to change. Often policies are cancelled at midnight, and InsureNet would have been notified earlier of the pending "delete", (certainly well before 12:01am), but at whatever time designated by the insurer, in choices documented previously, the policy is "turned off".

How can InsureNet stop an dishonest agent from 'backdating' a policy?
For insurers who wish to either use the UC, ("Unique Code"), as their activation code, as their binder number or link the UC to their binder number, InsureNet makes it impossible to back- date an insurance policy. In any of these cases, all policies are activated online and registered simultaneously. InsureNet also stops 'float', (premium diversion) which is when a dishonest Agent receives money for a policy and supplies documents that will never be processed or processed only by back dating in the event of a claim. These types of fraudulent activity have a very detrimental effect on the Industry as a whole and on the policyholders who inevitably pay for this type of fraud in increased rates.