"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.

"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 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.

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.

A few years ago, Peony Hammerquist was satisfied with her family’s health care coverage.

That was before her husband suffered an unusual brain infection that left him permanently disabled and unable to continue working as a corporate accountant.

It was before her 19-year-old daughter took out her own health insurance only to have the insurance company cancel her coverage when doctors found she had thyroid cancer.

“There’s a lot of things that need to be fixed,” Peony Hammerquist said. “You can’t live with health insurance, you can’t live without it.”

For her family, everything changed in September 2007. Before that, her husband, Don, had always been healthy.

Then one night, Don began having seizures. A sinus infection had traveled to his brain, and he slipped into a coma.

“They basically didn’t think he was going to live,” Peony said. “They told everybody, ‘Say goodbye.’”

After two months in the hospital, Don spent another six months relearning to walk, talk, and do “everything we take for granted,” Peony said. It could take five to seven years before they know what brain damage is permanent and what is temporary.

Don Hammerquist had insurance through his job. When he became ill and was unable to return to work, he was covered by COBRA insurance for 18 months — “which is atrocious, $1,000 a month just so he could stay insured,” his wife said. “Nobody would insure him at that point.”

Under the Consolidated Omnibus Budget Reconciliation Act – often referred to as COBRA — people who lose their health benefits can continue group health benefits for limited periods of time. Qualified individuals may be required to pay the entire premium for coverage, up to 102 percent of the cost.

Meanwhile, their daughter, Sara Hammerquist, unsure whether she wanted to attend college, took out her own health insurance policy, since state law no longer allowed her to be covered under her parents’ policy.

In fall 2008, Sara was in a car accident. As doctors were checking her for internal injuries, they found a lump in her throat and mentioned that she might want to have it checked.

When Sara went to the doctor for other reasons a few months later, the lump had grown. Doctors determined it was thyroid cancer, and Sara underwent two surgeries. Her cancer is currently in remission.

Meanwhile, her insurance company dropped her, rescinding coverage back to the day she took out the policy. The company claimed her cancer was a pre-existing condition that Sara must have known about.

Sara works two jobs to pay off her medical bills. She lives at home with her parents or stays with her sister in Rapid City because she can’t afford to pay rent.

The family has hired an attorney to try to get her insurance reinstated. Rates would likely be higher, though, and the insurance company is pushing to have Sarah pay more than a year’s worth of back premiums.

Attorney bills likely will amount to thousands. “But without that attorney … we wouldn’t even have a chance,” Peony said. Insurance companies “won’t listen to people like us.”

Luckily, she said, she was hired by the Spearfish School District as a teacher’s aide just as her husband’s COBRA policy was about to run out. He is now covered through her school insurance.

“I basically work for the insurance, because it’s so high,” she said. “When everything you make goes to insurance and medical bills, it’s kind of tough.”

For families like the Hammerquists, the new health care reform law could prove to be a blessing. The law’s provisions could also prevent others from finding themselves in a similar situation. Sara would have been able to stay on her parents’ insurance longer, despite the fact that she wasn’t going to school. The new law also prevents insurance companies from rescinding coverage if the policyholder has paid all premiums.

“I think it is definitely a start,” Peony said. “I think insurance companies have way too much power to just, you know, do what they want to do. You pay this insurance, but as soon as something bad happens, they want to drop you.”

Contact Heidi Bell Gease at 394-8419 or heidi.bell@rapidcityjournal.com