Mr. Miller said auto insurers are looking forward to the implementation of a computer-enhanced insurance checking system, which they expect to drive an increase in business. Additionally, he said that mortgage bankers have expressed interest in the technology to determine if insurance is being kept up on homes they have loans on.

His comments came as the company announced that they had just completed the nation's first proof of concept for its proprietary insurance verification system.

The InsureNet system, the company said, enables authorities to ascertain the actual real-time status of a vehicle's insurance policy on the spot.

InsureNet said this would mean that a police officer for the first time could be certain, at roadside, that an insurance policy is current and valid on an up-to-the-minute basis.

Mr. Miller said the technology would allow a cop in a patrol car to tap a license number into an onboard computer for an insurance verification procedure.

He said that Delaware police would use computers, but the InsureNet system can be used for verification using smart card technology, mobile card readers, cellular communications and a secure verification system as well.

The company said the smart card bears a chip, which is encrypted with 3DES security so it is virtually impossible to copy or tamper with. The card readers can be used in police vehicles, courthouses, DMV offices, or anywhere else that real-time status of a driver's insurance is required. The system can also support the use of bar codes, radio readers, touch-tone telephones and other technologies.

InsureNet noted estimates that almost 48 million vehicles are driven by uninsured motorists.

The InsureNet system was invented by Mr. Miller of InsureNet USA Inc. and developed by the company's business partners-- eGlobal International Ltd.

InsureNet said its system does not divulge a driver's or vehicle owner's personal details but instead provides only real-time status information--"active" or "inactive."

Additional details, such as the Vehicle Identification Number, policy number, and policy source are maintained in blind codes. No information of a personal nature or information that may have commercial value is ever kept by the system.

Mr. Miller said insurers liked this facet of the system because it would screen off the proprietary information in their data banks.

While a second level of proof-of-concept is now scheduled for the state of Delaware, Greg Craven, eGlobal chief technology officer, who provided the test software and systems, said that he is delighted, though not surprised, at the success of the field tests recently conducted.

"The InsureNet system uses very reliable technology, so we knew the tests would certainly be fine. They were, in fact, superb. It was really just a matter of providing an actual demonstration in a lifelike environment," said Mr. Craven.

Mr. Miller said the first test involved plate numbers from 123 vehicles.

The next test, InsureNet said, will use a police vehicle in three different locations throughout Delaware to verify the insurance status of 100 vehicle smart cards.

All of the cards in the first test accurately reported the real-time status of the simulated policy without exception. In actual practice this would allow the officer to take appropriate action to impound the vehicle, issue a ticket, or make an arrest.

"We are certain that the InsureNet system will benefit almost everyone in America. The only losers will be the criminals," said Mr. Miller. "The system obviously benefits insurance companies and governments, but it also has enormous long-term benefits to citizens and the society as a whole."

Mr. Miller said that as part of an agreement to use Delaware as its national pilot, the company is allowed to use the state's name. Current arrangements do not permit him to name the other five states working with the company, he said.

Following the first year that the system is online, he said, he would expect the initial boom in revenues from citations for failure to insure would dry up.