Barry Switzer is promoting insurance verification company with Oklahoma officials'

Barry Switzer has been using his state and national contacts to promote a company called InsureNet that is part of a consortium bidding on a multimillion dollar state contract to use highway traffic cameras and identify motorists without vehicle insurance.

"It's something that needs to be done, whether it's InsureNet or whoever,” Switzer said. "It's a procedure that should be in place for all states — get these damn cars off the road that aren't insured.”

The former Sooner and Dallas Cowboysfootball coach confirmed he has been traveling across the country helping promote InsureNet, a Chicago-based company part of an entity called the Oklahoma Public Safety Consortium.

The consortium is one of four bidders competing for an Oklahoma insurance verification enforcement contract. Other bidders include Canadian-based Intelligent Imaging Systems of Edmonton, Alberta; MV VeriSol, headquartered in Kingston, Ga.; and American Traffic Solutions, based in Scottsdale, Ariz.

Randy Ross, deputy director of the Oklahoma Department of Central Services, said his agency is evaluating the bids and hopes to award a contract soon. He said state officials hope it will help close Oklahoma's budget gap by generating at least $50 million in new revenue.

Oklahoma Insurance Department officials estimate between 18 and 23 percent of the vehicles on Oklahoma roads are uninsured. The contract calls for fixed or mobile cameras to photograph license plates on moving vehicles. Computers would transmit the data and match it to insurance verification information on national, state and insurance company databases.

Industry officials say technology has advanced to the point it is possible to almost instantaneously determine whether a car is listed as having insurance. If no insurance is found, the owner of the vehicle would be sent a letter giving the individual the opportunity to show that a mistake has been made or pay a $250 fine.

Privacy issues raised

While some opponents claim the system smacks of government spying, industry executives say the system is not that intrusive and has many benefits for motorists who do carry insurance.

"There are no privacy issues. No personal data is involved,” said Charles Pecchio, chairman of MV VeriSol.

Switzer said the cameras don't take pictures of people in the cars.

People who have insurance will benefit because the cost of uninsured motorist coverage will drop as more people are forced to buy insurance, Pecchio said. It should also help with health insurance rates because a lot of uninsured motorists injured in accidents are going to emergency rooms and having Medicaid pay for their treatment.

The combination of improved technology and declining revenue has prompted many states to consider adopting new insurance verification enforcement systems, Pecchio said.

Switzer's connection

Switzer said InsureNet officials about a year ago asked whether he could help introduce them to state Treasurer Scott Meacham and officials at the Oklahoma Department of Public Safety.

Switzer said he was happy to oblige because he believes in their product. He said he was introduced to the InsureNet executives by insurance agent and former University of Oklahoma football player Tinker Owens, who is a company consultant.

Former Republican state Rep. Wayne Pettigrew of Edmond has also done national marketing and government relations work for the company.

Switzer said he introduced InsureNet officials to executives in several states, including Oklahoma, Texas, Tennessee, Kansas, Missouri and New Mexico.

"All I do is open the door for them,” Switzer said. "I've done that, haven't been paid a dime. ... I've invested a lot of money just flying myself around. They haven't paid my expenses or anything. ... If the states go on these contracts, I'm sure I'll get paid for doing it.”

Switzer said he has no written contract, has never invested in the company and doesn't own a share of stock. "I've done business like that,” he said. "I do business with a lot of people by handshake and so far this has been that way.”

Switzer's support of Brad Henry in the 2002 gubernatorial campaign was credited by many political observers with helping the governor get elected, but Switzer said he doesn't think his relationship had anything to do with InsureNet seeking him out.

"Brad Henry is not even involved in this,” he said.

Bids discussed

Ross said contents of pending bids are being kept secret, so it is not known exactly how various companies are proposing to construct their systems.

Jonathan Miller, chairman of InsureNet, said his company is willing to guarantee the state his consortium's system would see tags of at least 80 percent of the vehicles on Oklahoma roads each year. This would require installation of at least 200 cameras, some in marked mobile units.

Miller said his company is also willing to guarantee the state will net $40 million to $50 million in revenue during the first full year of implementation if the state's insurance verification data is accurate. The consortium would receive 30 percent of gross revenues, which would amount to more than $21 million if the state makes $50 million.

However, the winning bidder will also be responsible for paying costs of installing and operating the system. Each camera can be as much as $22,000 to $50,000, officials said.

Pecchio said his company doesn't guarantee state revenues, but he thinks the state's projection of $50 million can be reached.