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Sponsors outline plan for real-time auto insurance verification system to curb uninsured and 'fake LLC' registrations
Summary
Representative Abrams and joint sponsor Jack Daniels presented House Bill 678 to create a BMV‑run real‑time auto insurance verification system; sponsors said it would allow law enforcement and registrars to verify coverage, send notices for lapses, and (after a pilot) permit suspension of registration items for confirmed noncompliance. Lawmakers asked about false positives, appeals, funding (a proposed $40 'blackout' plate), and privacy safeguards.
Representative Abrams presented detailed sponsor testimony on House Bill 678, which would establish an online Ohio Insurance Verification System run by the Bureau of Motor Vehicles (BMV) to allow real‑time confirmation of a vehicle’s insurance status.
Abrams described recurring enforcement problems including vehicles registered to so‑called "fake LLCs" and hit‑and‑runs where victims have no insurance recourse. The bill would require cooperation between insurers and the registrar, enable the registrar to verify added, dropped or changed financial responsibility data using insurer feeds and VIN/policy information, and require notification to individuals electronically or…
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