Ruth Mazur, Chairperson



MEETING MINUTES

IICMVA Insurers Only Meeting

April 24, 2008

Little America Hotel

2800 West Lincolnway

Cheyenne, WY 82009

800-235-6383

In Attendance

| |Company Name |Email Address |

| | | |

| | | |

|Representative Name | | |

|Ali, Annette |Progressive |Annette_Ali@ |

|Allard, Marianne |Travelers |MMallard@ |

|Babich, Sandy |The Hartford Financial Services |sandy.babich@ |

|Bellafiore, Mary |Amica Mutual Insurance Company |mbellafiore@ |

|Bernens, Donald |Liberty Mutual |Donald.BernensJr@ |

|Clark, Jerry |Cincinnati Insurance Company |Jerry_Clark@ |

|Collins, Connie |Direct General Corporation |conniecollins@ |

|Cooper, George |State Farm |George.Cooper.bqbg@State |

|DeForge, Paul |USAA |Paul.DeForge@ |

|ElHindi, Christine |Progressive |Christine_Elhindi@ |

|Gibson, Laurie |Foremost Insurance |Laurie.Bustance@ |

|Goulbourne, Vernon |Foremost Insurance |Vernon.goulbourne@ |

|Hageli, Alex |PCI |Alex.Hageli@ |

|Harrison, Cheryl |Allstate |Cheryl Harrison |

|Hering, Keith |USAA |Keith.Hering@ |

|Hinds, Bill |GEICO |Bhinds@ |

|Kelly, Ruth |The Hartford |Ruth.Kelly@ |

|Kratochvil, Joe |Allstate |jkfuo@ |

|Lachina, Diana |Progressive |dlachina@ |

|Losacco, Dino |Allstate |Dino.Losacco@ |

|Maguire, Kathleen |State Farm |Kathleen.s.maguiregi1y@ |

|McGlade, Loren |AIG |Loren.McGlade@ |

|Miller, gena |Progressive |Gena.miller@ |

|Nelson, Julie |Farmers Insurance |Julie.nelson@ |

|Olsen, Kelly |Zurich North America |Kelly.olsen@ |

|Powers, Dan |Federated Insurance Companies |DAPowers@ |

|Schroeder, Bill |American Family |wschroeder@ |

|Snyder, Dave |AIA |Dsnyder@ |

|Sollenberger, George |AIG |George.Sollenberger@ |

|Sullivan, Henry |BIS Services |HJSullivan@ |

|Talley, Richard |GEICO |Dtalley@ |

|Traeger, Doug |USAA |Doug.Traeger@ |

|Traut, Dave |Cincinnati Insurance Company |Dave.traut@ |

|Treccariche, Kim |Farmers |Kim.treccariche@ |

|Truesdale, Craig |Allstate |ctrue@ |

|Vollmer, Cathy |Farmers |Cathy.vollmer@ |

| | | |

| | | |

| | | |

| | | |

| | | |

April 24, 2008

ITEM 1 – Antitrust Reading

The Chair, Loren McGlade, read the Antitrust Preamble[i].

ITEM 2 – Approval of the November 2007 Orlando Meeting Minutes

After a brief discussion, a motion was made and seconded, and the November, 2007 Orlando meeting minutes were approved by voice vote.

ITEM 3 – Budget Update

The Treasurer, Jerry Clark, provided the group with documents outlining the IICMVA financials and explained that the IICMVA is in sound financial shape. These documents provided details on the following items:

• 2007 Year-end Financials

• 2008 YTD Financials

• YTD Budget

In addition, Jerry provided members with an update on the following topics:

CGL Update

• We received an unrealistic quote for $10,000. Jerry stated that the annual premium should be closer to $600.

Illinois SOS

• The Illinois Secretary of State Annual Report for Not for Profit Corporations was filed along with the Illinois Attorney General Registration.

PayPal for Invoices

• An IICMVA Pay Pal account has been established. Anyone wishing to pay via this method will incur an additional handling fee to cover the cost of maintaining this service.

• Pay Pal should be used for situations where no other method of payment is available. The associated fees are 2.9% of the amount, plus an additional $.30 for each transaction under $3,000.

ITEM 4 – Online Verification Phase II – Members only Discussion

Loren asked members for their approval of the revised OLV Phase II document. After addressing several issues, revisions were made on the spot and the new methodology was unanimously approved by members.

ITEM 5 – Task Force Updates

New York IIES Transaction Overlap – Dino Losacco provided the group with a recently written memo from Jerry Clark, Director of Insurance Services Bureau with the New York DMV.

In that memo, Jerry acknowledged that a transaction overlap problem does in fact exist. Jerry stated that although the DMV has explored several different approaches to improving this situation they have yet to fully address the matter. He also added that the original proposal developed by the Transaction Overlap Committee – to utilize the ICC code form matching transactions - had formally been researched by DMV’s IT group, who determined that the system change would not be feasible.

Jerry indicated that the most recent proposal, to expand the ICC comparison rule beyond 90 days, appears to be conceptually promising as it would provide many of the benefits of the initial proposal and hopefully address many of the problem transactions troubling the industry. However, preliminary conversations with DMV’s IT unit have been less than promising as they expressed concern that the proposal may be wrought with many of the issues associated with the last proposal, that is, risk to the system stability and scarcity of resources.

As for the new error codes that went into effect on January 8, 2008, Jerry indicated that based on the first three months of data, inquiry volumes for the 2008 calendar year are expected to decrease by 15% from 2007. This decrease represents only the most recent success of the system as the volume of inquiry letters generated has consistently dropped since the implementation of IIES. As recently as 2004, over 800,000 first inquiry letters were generated. This year Jerry expects that number to be less than 500,000.

Members of the IICMVA NY task forces agreed to combine their respective members into one committee for the purpose of allowing better interaction with the NY DMV. Ruth Kelly volunteered to take the lead role on this new committee.

An updated list of Task Froce members is as follows:

Ruth Kelly (The Hartford) Chair

Ginny Boyles (ACE-INA)

Marianne Allard (St. Paul – Travelers)

Loren McGlade (AIG)

Kelly Olsen (Zurich NA)

Dino Losacco (Allstate)

Bill Hinds (GEICO)

Annette Ali (Progressive)

Gena Miller (Progressive)

Rob Bryant (State Farm)

PennDOT – This task force is no longer needed and has therefore been retired. Virginia Boyles, ACE-INA, chair should be contacted if there is any update or need to reactivate the PennDOT Task Force.

Financial Responsibility Program and Procedures Guide (SR22 Guide) –

Bill Hinds informed the group that he hopes to secure a new list of contacts from the AAMVA regional directors so that a new batch of surveys can be sent out.

An updated list of Task Force members is as follows:

Bill Hinds (GEICO)

Don Bernens (Liberty)

George Cooper (State Farm)

Bill McKinley (Nationwide)

Annette Ali (Progressive)

Gena Miller (Progressive)

Julie Nelson (Farmers)

Cheryl Harrison (Allstate)

Connecticut Commercial – Ruth Kelly and Marianne Allard provided an update on the recently introduced SB-503. This piece of legislation included a variety of different items including a web service verification program.

Ruth Kelly stated that the Connecticut DMV has voiced their concern in reference to their existing database program being somewhat inadequate. The main concern is that the program does not go far enough to target repeat offenders.

Loren McGlade stated that the CT DMV is considering pursuing the IICMVA Web Service model as a way to monitor their repeat offenders. CNA, AIG and The Hartford have volunteered to pilot a web service program with the state.

An updated list of Task Force members is as follows:

Loren McGlade (AIG) Chair

Ruth Kelly (The Hartford)

Marianne Allard (St. Paul – The Travelers)

Virginia Boyles (ACE-INA)

Patricia Barkdoll (CNA)

Dave Snyder (AIA)

Nevada – George Cooper stated that the letter that outlined the industry’s concern to the Nevada DMV did not achieve its objective -- to steer the DMV to make the necessary changes as to eliminate the existing flaws in their process. Instead, the DMV appeared to have diverted their concerns away from the issues at hand. As such, George recommended that we try to focus our attention on the security aspect of the existing technology, claiming that the DMV may be more willing to work with us if they don’t feel overwhelmed with numerous requests.

George told the group that several vendors have approached the DMV with their respective solutions, and that the DMV appears to be willing to listen.

An updated list of Task Force members is as follows:

George Cooper (State Farm) Chair

Annette Ali (Progressive)

Marianne Allard (St. Paul – Travelers)

Paul Deforge (USAA)

Alex Hageli (PCI)

Kathleen Maguire (State Farm)

Gena Miller (Progressive)

Bar Coded ID Card – Cathy Vollmer stated that this task force will be drafting a white paper to outline an IICMVA standard. The premise is that this white paper will not necessarily be used as a means to suggest that states should implement bar-coded ID cards, but rather, to recognize the industry’s viewpoint on this topic.

Doug Traeger stated that the cost for companies to introduce bar-coded ID cards can be significant. Doug went on to say that the PDF417 format may require some additional effort to implement.

Dino Losacco suggested that the white paper needs to address the need for states to confirm that the information contained in the bar-code truly reflects that of the vehicle in question. This will be necessary in order to prevent fraud.

An updated list of Task Force members is as follows:

Julie Nelson (Farmers) Chair

Cathy Vollmer (Farmers)

Marianne Allard (St. Paul – Travelers)

Ginny Boyles (ACE-INA)

George Cooper (State Farm)

Doug Traeger (USAA)

IICMVA Web Services Brochure – The concept of this brochure has been broadly embraced by members as it helps convey the message of the IICMVA Web Service much more so than a model guide and/or white paper.

Marianne Allard has been working with the IICMVA technical representatives to address the content of the IICMVA Web Services brochure. She stated that the newly adopted OLV methodology will be included in the brochure.

The Hartford has offered to cover the cost of printing these brochures. Both the brochure and a PDF version will be available for publishing within 8 - 10 weeks.

An updated list of Task Force members is as follows:

Marianne Allard (St Paul – (Travelers) Chair

George Cooper (State Farm)

Ruth Kelly (The Hartford)

IICMVA Website Redesign – Keith Hering proposed that the following productivity tools be incorporated into our website:

• A document sharing technology similar to GOOGLE Documents.

• Wiki Technology – A powerful and simple way to update and power community websites. It enables authorized users to update websites with little to no knowledge of web development. This tool could be useful in that it would enable the board members to directly update the IICMVA website.

• Addition of an online meeting registration page. This would provide much benefit by way of making available an ongoing, updated list of registered attendees.

The board approved up to $4,000 in expenditures for web development, vendor services.

An updated list of Task Force members is as follows:

Keith Hering (USAA) Chair

George Cooper (State Farm)

Ross Hoffner (GEICO)

Dino Losacco (Allstate)

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[i] The text of the IICMVA Preamble is as follows: (To be recited at all IICMVA meetings.) “As members of the Insurance Industry Committee on Motor Vehicle Administration (IICMVA) or participants in this meeting, we need to be mindful of the constraints of the antitrust laws. There shall be no discussions of agreements or concerted actions that may restrain competition, such as price fixing, boycotts, refusals to deal or allocations of markets. This prohibition includes the exchange of information concerning individual company rates, coverages, market practices, claims settlement practices or any other competitive aspect of an individual company's operation. Each member or participant is obligated to follow the published agenda and to speak up immediately for the purpose of preventing any discussion falling outside the bounds indicated. Please refer to the more detailed antitrust preamble included with the materials for this meeting.”

ACE-INA

AIG

Alea North America Insurance Company

Allstate Insurance Company

American Family Insurance Company

AIA

American Modern Insurance Group

Assurant Specialty Property

Cincinnati Insurance Company

|CNA Insurance

Employers Mutual Casualty

Farmers Insurance Group

Federated Insurance Company

Fireman’s Fund

Foremost Insurance Group

GEICO Corporation

Liberty Mutual Group

NAMIC

Nationwide Insurance Companies

|One Beacon Insurance

The Progressive Group of Insurance Companies

PCI

Scottsdale Insurance Company

State Farm Insurance Group

St. Paul Travelers

The Hartford Insurance Group

USAA

Zurich | |

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Insurance Industry Committee on Motor Vehicle Administration

Insurance Industry Committee on Motor Vehicle Administration

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