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Protects Privacy .... Ensures Safety ....and, Supports the Rule of Law .... because it's ....

NLETS ''''':':'In:troduction: The following document is intended to provide a brief tutorial regarding both the emerging use of License Plate Recognition and the NonInvasive uses of that technology controlled by Law Enforcement. This is always and only a direct extension of Law Enforcement. Only an Oklahoma-Certified Law Enforcement Officer can provide a final review and approval of a citation for "No Proof." This is nothing other than providing an extension of Law Enforcement at roadside. The only difference is that it is far more efficient. InsureNet technology and our use of License Plate Recognition does not support or even permit the use of "red light or speed cameras." This is not only NOT some "Big Brother" technology, but is exactly the opposite ... a method to eliminate current requirements in . Oklahoma-and elsewhere to use names and addresses to identify vehicles.

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This system has no names and addresses. In fact, it cannot accept them and certainly cannot maintain and use them. ~'the, urrent system in Oklahoma is designed to use a person's name and c address whenever there is no clear link in the existing database to a particular vehicles, to then "broadcast email" those personal details out to hundreds of insurers over the internet with only PGP, (Pretty Good Protection) encryption. This system has the support of privacy advocates and even then Nation's largest chapter of the NAACP, (Detroit). It cannot identify any person, group of neighborhood. It is the only possible means to ensure against current and potential Federal agendas and other efforts to identify vehicles using data that clearly violates the DPPA, (Drivers Privacy Protection Act), and State Law. Please see the attached "Legal Considerations" document prepared for DMVs.

This system has one goal: identification of objects, (in this case, vehicles), and to determine with total accuracy if those objects are in full legal "compliance. --...-. It does not matter who is driving the vehicle. If it is on a public

roadway and uninsured, it is there illegally and is a threat to every person in every other vehicle on that same road. This system can identify vehicles from every State, every Canadian Province and Mexico, (Mexican commercial vehicles only at this time). The founders and management of this Company are, without exception, Conservative Republicans. Our passion for privacy protection is the result of an acceptance on our part that government systems and those entities that purchase privacy-laden data from them, cannot be trusted to properly protect the Public. This system fully supports the rule of law.... but takes dangerous decisions away from those that have demonstrated little regard
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This is not about penalties and fines, it's about protection .....
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The State does not want to fine people ...

;if'wan'~;~'lo,protecthem by enforcing existing laws .... but .... t

Fines assist with compliance and can dramatically benefit Oklahoma as the Uninsured Vehicle Rate continues to fall and protection increases
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providing"~~somplete NLETS-based solution with dramatic advar1i~ges.... but. .. without funding requirements
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Ail Additional Revenue Center and the


Best;'Possible Privacy Protection ...
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Has No Names and Addresses Eliminates the Need for DMV and Other Government Entities to N/;ls$Bro-adcast Names and Addresses via email.

"Using,Thiri;'5ystemWhich

"::izt:;~7'~:.;;"Jhj,~~g<;l~~rvi~w; Highlights A Method to Begin Benefits Quickly . '','.';X -:'withaNo~CosUNo-Trauma/No-Risk Initial System

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No Cost no fees and new equipment or software purchase of any .kind for Government or Insurers No New or Additional Effort ..... for all insurers regarding at least 90%+ of aU policies written. Insurers will do less than they do now for other States and no insurer will be disadvantaged

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Belbw is a very ;;~~i~"list of potential benefits planned. Because this is not intended as a "benefits and costs" document, we have intentionally provided little details herein-but you will find whatever additional information you may nee~ at oklahomaihsur~:,~et
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Fihanci~1 benefits to.\~ldahoma: ~ ."


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""E'stirnated savings~and projected additional income: :-ACJlli:ft'iohaL~i~21tionRevenue from "No Proof of Insurance", (Roadside: $22.4 O1iHTon,~~.ri6ni'ate(l: $235.7 million) for a total of $258 million

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"No or Improper Registration", (Roadside: 3Y?;'~;.~f~~'$:~m'1)~i'p;.p,Rolice'Multiplier: $55.2 million) for a total of $63 million .'~;fr~tResponders/Emergency Rooms - Government: $62.6 million i<~';IDAsanCf other Prosecutors Savings to Government: $1.6 million ;';'!'~AdditfonalFines - Insurance Commissioner - Income: $640,000. -Savinqsfor Law Enforcement: $2.6 million -Savinqs 'for all Courts Involved with Traffic Matters, incl. both Subrogation and Respcnslbility Issues, $4 million -Vehiclelnsurers - Additional Income over $1.5 billion
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- Vehicle Insurer~i;c'iNew Savings: over $400 million - Healthcare Ins~u~~~fS -Savings: $48 million - Additional Premium Tax, Income to Government: $30.2.
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.We caution thattheseare only estimates that represent the maximum possible . -the first full year ofoperation once implementation is complete and as people will rush to' purchaseinsurance, the revenue levels will quickly fall, (approximately 42fi)' affer just the first full year). See "lnsureNet Presentation to Sjt~ll~'DQma" more details, for F~f.gre8't~~Kep)riva'Cy protection, this is a totally non-invasive system. No abuse is possible because no privacy details are accepted or maintained. Free 'po;q~.I;~/,Jgr;pnitoriug and oversight are provided to any/all privacy protection m Jgi~~;@M:i~~,)i~n';ft0at requests them. 1~:2.,;ldentification of:
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-Undocumented, pnreg.ist~red and -Unlnsured Vehicles from Oklahoma and, , -every other State in the US and,

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every Province of Canada and, Mexican vehicles, (commercial only at this time, no passenger vehicle files are yet available) ~Silve~'Ale'rtsJSafety"'~-et-'In 2007, 114,288 people at risk were reported -missinq. By2059,y'16-frlillion Americans are expected to have Alzheimer's disease. Autism affects 1 in every 150 children. Through both Project Lifesaver and CMEC, (Amber Alerts), both supported by Nlets, we will provide SiJ.{~tlSaf~~~~jXrert system linked to all scanner units in the system
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- Full Amber Alerts are carried now via Nlets

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Hot List, {Stolen Vehicles) Alerts


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)r>Smog:~lerts, (C02 Emission Sensor Stations)

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c~'rfiere'~%no cost of any kind to any government entity or to any insurer for use :;~;:';bfhis 'system. It is paid for by a percentage of new revenues. This is provided t . asasirnple "turnkey" solution.

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How can this be non-invasive? - Privacy Net

This; system is incapable of receiving, maintaining and thus using', cihy name or address.
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Drive Private ... Drive Safe .... Drive with Confi~ence from InsureNet's Pnvacy Net

notidentifysuch e'lements or record them. The system

.prq\(;;ig~ no-cost, built-in secure portals for the ACLU, ~);~Pf.':" ",.,:t~~fTi::?!:i' , ~~CP ar-tf'l.':;'pther: Minority and privacy advocacy groups and encourages all
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to monitor the actual files to confirm the non-invasive themselves at any time. IICMVA type systems

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implemented now in Oklahoma, use names and addresses

I'n broadcast emails to hundreds of insurers and even other current DMV
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this ls different. .. this system has no names and addresses.

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NAfc Code which shq~ld be part of the transmission 10, 3) Effective and/or
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recorrfed,~theAsset 10 or OOT#), 5) ZIP Code, 6) Make/Model/Year,

'.'7);~tJ.enHol&t~r.IONumber and Policy levels for Comprehensive, Collision, UMI, ,'~~;PI~~~~~H9pble, but again ..no names or addresses.

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system shows respect for everyone. No vehicle can be unless the insurer of record specifically indicates that the No

vehlcle was insured, is no longer and no insurer currently provides coverage.

"thallenge" or random sampling program is necessary. The status of a vehicle's InsUrabce is always and only exactly what the insurer of record indicates for , intrastate and interstate vehicles .... equal protection and enforcement.
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by License Plate

The 'Sf~te has use.d;I'~utomated vehicle identification systems for many ......years. Unitsin~lic~vehicles monitor and record traffic stops all day__ .

'eve:h!Y' day. ~:PlJchsystems protect both those stopped and the officer(s) i~\f~lveGl~~~~n~t.iring there is a record of the incident. The license plate
,<,:~,~,~l?~longsthe State, never the vehicle owner. It is in plain sight and on to
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'~f:\iieh:i~le"l.lsihg public surface. The ability to accurately identify a a ~~~ehiCI,e not a person but a vehicle .... is critical to the entire law ....
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enforcement community, including the Courts and also regarding ,'VetntcJe;Registration and Revenue.

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Identification by License Plate

All across the State, automated vehicle identification systems are used now. iT'~ese inehrdellcense
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plate scanners for commercial trucking

purposes at'weigQ:.st~tions and also includes checking for insurance and


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registration at those sites. The State has been doing this for years. The sys~eFh'prop'used is simply adding that ability regarding other vehicles and, as with 'commercial trucking, ensuring there is equal protection and
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::.8~l~-:';e~:f~~1l~rrl\e:fl~:"'1DY identification of non-compliant vehicles from all

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The 'question is not if automated enforcement will be used

but how to use it efficiently and provide proper privacy protection .... th is system

is that

answer and it is an answer that treats all vehicles equally.

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A young officer pulls up behind a vehicle on a cold dark night and tries to deterrhine if the driver's <movements indicates that he is frantically searching for- documents or a eriforcementh-as
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under the seat or in the glove box. For decades, law

1~a {,led fa r the "th ird leg of the stool" ... or veh icle insu rance They already

::~,:'statO$1tthat does-net need confirmation by a paper document. ha'$1vehie'(~~tr.ati~n and driving/criminal

history access from every State

'-i~~~~i'.~~;~,n~t,RrQ,YlDG~ They have nothing they can count on for insurance. via Nlets.

'tfu~~r~~~~~I~ NI~ts-approved

solution for law enforcement. Additionally ...

~;i{~ls'uralice, like registration, is not questionable or related to the driver. ..if the

'vehicle is on the road, it is illegal. For those non-invasive purposes, police


multipliers can dramatically reduce effort and
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increase efficiency by a ratio of at least 3:80.

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Police Multipliers at Roadside Have Six Parts:


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1) Antenna for Cell, Mesh and/or Line-of-Sight Communications ~ 2) Communications System to Serve One Primary and At Least One Back-up Communications System Channels
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3) 8 Gig Updatable Database on Chip-Based Hard Drive with License Plate Numbers of All Known Non-Compliant Vehicles 4) Scanner System, (Must be DOT-Approved Product from APL) 5) Infrared/Other Light Sources

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6) Post/Pole, (Mounting Done by Certified DOT Contractor after Approval of Certified Engineer's Drawings and Detailed Analysis of Weight and Wind Loads, Power Requirements, etc., These Units Do Not Require Communications Cables All Units Are Self-Contained and Wireless).

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Police Multipliers Do Nine Things:


1. As vehicle goes by, light source assists, (even during daylight hours), in helping obtain a bright, clear image. 2. Scanner records rear of vehicle, with sharp detail of tag. No view of the front of vehicle, or any form of personal identification is possible. 3. Character recognition software on-board the server itself, mounted in a hardened case on the pole, (one server serves all scanners in a single location), determines license plate number. 4. In-built memory, (which is kept constantly updated), is checked and system instantly determines if the vehicle is a non-compliant intrastate vehicle regarding vehicle insurance and/or registration. 5. If compliant, query is instantly purged to be over-written. No record is maintained past 1 second. If non-compliant or no record of proper vehicle insurance and/or registration, the file is held for transfer.

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Police Multipliers Do Nine Things, continued:


The system will read only about 90% of Intrastate license plates. It is left to other units to see a vehicle that was missed. It is our goal to identify 80% of all vehicles sometime during the year. If system does not identify the vehicle as intrastate, it is assumed to be interstate. Character recognition software on-site will, about 90% of the time, then determine by text, shape, colors, reflection levels and much else, the jurisdiction and read the number of those interstate/other vehicles. 7. If the vehicle is from a jurisdiction served by InsureNet, the insurance status will be known and if non-compliant, status will be recorded in the on-site system. Images of those interstate vehicles known to be noncompliant will be held for transfer, If compliant, the query is instantly purged to be over-written. As with intrastate vehicles, no such record is maintained past 1 second. 8. For this approximately 10% of non-Oklahoma vehicle license plates not fully read by the system, those images will be held for transfer. 9. Each time the on-board chip based server reaches 50% capacity, it instantly sends all files held for transfer to the Central NLETS-compliant InsureNet Servers for processing.

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All over the Nation, Law Enforcement uses systems from Federal Signal/PIPS, Motorola, PlateScan, NRI, Elsag and other companies to view license plates and identify, up to 3000 vehicles/hour. From Alabama to California, these "Smart Cruisers" deal with Hot Lists, (stolen cars), Amber Alerts, vehicles linked to drivers with outstanding warrants, and much more. Fixed sites are also becoming very common but can address only limited requirements. The system proposed can be both mobile -- inside a police vehicle or on fixed sites along the roadway. We are assuming fixed sites only at this time but can also provide this system and services for mobile platforms. What we can never do is to deal with any personal data as we never get that and do not want it. We see only the back of a vehicle and can identify nothing regarding a person.

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Actual PIPS Camera... identical to those that will be used

Computer processing works on the global information (the entire image) for detecting the plate, then zooms into the data in order to handle the small details and finally extract the license plate characters. The end result of the recognition process is a data String which is the license plate number. The transformation of the image data into a result string is actually a very large compression of the,original raw data (1:31600 ). The typical format, is composed of 256 grey levels ranging from black (grey level 0) to white (grey level 255). For a typical format there are 768 X 288 pixels (PICture ELements), or about 0.2 Million elements. This vast amount of information is processed by the recognition software in order to automatically locate and read the plate. The initial image starts from the raw data, then repeatedly zooms up, (with factor x2) until the pixel level is reached.
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Insurance Status: VALID Insurer: Nationwide General Insurance Date of Last Update: Thursday, October VIN: 1HGCM56705A192297 Policy Number: 52 07 G 104885 Physical description of the vehicle Confirm if included: VMA (Honda) VMO (Accord 4D) VYR (2005) --END--

NOT\CE THAT NO RECORD fOR p.N"l ~~~a~~H'CLE fROM p.N"l STATE OR PROViNCE SHOWS A NA.N\E OR ADDRESS .... BECAUSE NO NAME OR ADDRESS WAS EVER PROV'DED OR
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What is processed at roadside or transmitted looks like this, assuming that 15% of all vehicles are interstate: 11.7% of the total, (78% of the 15% of vehicular traffic that is Interstate) is compliant and those records are also instantly purged 66% of the total, (78% of the 85% of vehicular traffic that is Intrastate) is compliant and these records are instantly purged also

So, 77.7 of all records are purged within one second. But 18.7% of Intrastate Vehicles will either be seen as non-compliant or having "no record." Vehicles regarding those files can only be cited if, within one minute, it can be demonstrated there is a clear no insurance and/or no registration record. Otherwise, those records also disappear. This percentage will fall quickly. Within a year it is estimated that there will be a 42% reduction in intrastate files being transmitted.

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A total of 20.07%, (the approximately 90% identified of the 22.3% which is interstate), will be transmitted.

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A total of 22.3% net, will be transmitted. Nineteen percent represents non-compliant and "no records found" intrastate vehicles. All others regarding intrastate vehicles are immediately purged. Over time, as the uninsured vehicle rate falls, fewer files will be reviewed within the one second/one minute deadline. Rememberthat each Police Multiplier has a list of license plates identifying onlynon-compliant vehicles. This starts as a highly-efficient system that then becomes even more so.
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A total of 3.3%, (3% of which is non-compliant and 03% which is "no record"), of interstate traffic will be transmitted

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Citations for "No Proof' are processed as vehicles are fully and accurately identified as non-compliant. Only a vehicle on which the actual insurer of record and its government of registration show no insurance will be listed as requiring a citation be sent to the owner. Once this happens, only a Certified Law Enforcement Officer can review the vehicle description from the DMV file along with the photo of the vehicle, see the status report regarding insurance, (and/or registration), and approve the citation. Once the citation is sent, a period of not less than 45 days is provided to show proof. Over forty net sites have been organized to assist that process. "800" numbers supporting three languages, fax lines and a 'live" Help Desk are also available. This support system operates '24//7" and its role is to ensure that every person is treated with upmost respect and courtesy. Letters to each vehicle owner cited will include a photo of the back of the vehicle, a close-up of the license plate, a date and time stamp of the incident, a privacy statement detailing that no use of personal data was involved prior to the vehicle being identified as uninsured by previous insurer and government, a code reference and fine amount.
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The citation letter also contains details of any/all additional code/ statute references along with penalties and/or possible penalties provided for in the State involved if this was an interstate vehicle. Additionally, references to the National Offender Clearing House, Interstate Compacts and more will explain how and why the fact that this is an interstate vehicle is not relevant. ..the owner must comply. All funds collected go directly to a government bank account for distribution, never to InsureNet. The government has no cost of any kind. InsureNet is the sole entity with which the State deals. It alone stands responsible and will bond to secure the contract. Its partners, (Federal Signal, Adesta and liS), have operations in almost every State, including this one. This system is already the National Law Enforcement Standard and will be used at roadside in vehicles by all Officers. Does it not seem logical to use it also for intrastate use and both protect the public and generate far greater revenue?

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