NAII Backs Auto License Standard

By Daniel Hays

NU Online News Service, June 17, 12:02 p.m.EST?A proposal pushed by motor vehicle administrators, fora federally standardized drivers license, has won the conditionalsupport of an insurers' group.

The idea, which is a legislative issue being pushed by twoDemocratic congressmen, has the backing of the National Associationof Independent Insurers. Des Plaines, Ill.-based NAII said thesystem should ferret out bad drivers, who add to carriers'costs.

Charles Taylor, NAII assistant vice president for governmentrelations in Washington, said the group's announcement followed abriefing from the director of the American Association of MotorVehicle Administrators.

AAMVA, he said, has been promoting the idea of creating minimumstandards as a homeland security issue.

According to U.S. Sen. Dick Durbin, D-Ill., who held a hearingon the topic, eight of the 19 men linked to the Sept. 11 terroristattack were able to obtain official state-issued identificationcards. They exploited a loophole in Virginia allowing them toreceive a license simply by showing a notarized form vouching forin-state residency, he said.

More than 240 types of drivers licenses are in use throughoutthe nation and some require no proof of residency, according to Mr.Durbin, who is drafting legislation.

In the House, Rep. Jim Moran, D-Va., has already submitted abill with Rep. Thomas Davis, R-Va. The measure would, among otherthings, require the state motor vehicle databases to be linked andthat licenses have a security feature such as a retinal scan orfingerprint imbedded on an encrypted smart chip.

Mr. Taylor said members on the NAII Personal Auto/NonstandardAuto Insurance Committee like the idea of one driver record."However, we're going to monitor its possible provisions" he saidbecause of possible concerns over privacy issues.

He said the AAMVA has hired the Washington public relations firmof PodestaMatoon to push the issue, but it may be difficult to getit through a Congress focused on elections and appropriationsissues.

Terry Tyrpin, NAII senior vice president, insurance and researchservices said in addition to improving security, a linked andstandardized license system would mean motorists "would no longerbe able to hide bad driving records or other underwritinginformation by obtaining multiple drivers' licenses."

He added that "insurers should be more likely to discover if oneof their policyholders had an accident or serious violation inanother state. Insurance premiums then could be adjustedaccordingly and good drivers would not have to pay higher premiumsto subsidize bad drivers."

Mr. Tyrpin said, "Over time, highway safety will be improved bydeterring motorists from holding multiple licenses, hidingout-of-state traffic law violations or acquiring a driver's licenseunder false pretenses."

But the NAII noted that, while a "smart card" license could helplaw enforcement officers, issues could arise regarding what data isto be entered into the card, who has access to it, how theinformation is to be kept up-to-date, etc.

"A threat to national driver's license standards exists as someprivacy groups contend the new licensing procedures could evolveinto a national ID card," Mr. Tyrpin said. "It would be regrettableif these groups thwarted an initiative crucial to national securityinterests and to improving the integrity of the driver's licenseand driving record system."

Jason King, a spokesman for the AAMVA said the proposedstandards are "no silver bullet' to end security concerns, but hesaid the current auto license "product is defective and not assecure as it can be." He said AAMVA wants, "one license one driverhistory and one identity.