REPORT TITLE:
Motor Vehicle Insurance


DESCRIPTION:
Requires motor vehicle insurers to give counties electronic
notice of policy issuances, cancellations, nonrenewals, and
lapses.  Appropriates funds for development of a database of
insured motorists.  (HB2751 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2751
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR VEHICLE INSURANCE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this Act is to implement the
 
 2 recommendation of the motor vehicle insurance benefits task force
 
 3 to:
 
 4      (1)  Have the counties establish respective databases of
 
 5           vehicle identification numbers to enable law
 
 6           enforcement officers to determine whether a motor
 
 7           vehicle is in compliance with the motor vehicle
 
 8           insurance laws; and
 
 9      (2)  Require motor vehicle insurers to update the databases
 
10           on a timely basis.
 
11      SECTION 2.  Section 431:10C-107, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§431:10C-107  Verification of insurance:  motor vehicles.
 
14 (a)  Every insurer shall issue to its insureds a motor vehicle
 
15 insurance identification card for each motor vehicle for which
 
16 the basic motor vehicle insurance coverage is written.  The
 
17 identification card shall contain the following:
 
18      (1)  Name of make and factory or serial number of the motor
 
19           vehicle; provided that insurers of five or more motor
 
20           vehicles which are under common registered ownership
 

 
Page 2                                                     2751
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           and used in the regular course of business shall not be
 
 2           required to indicate the name of make and the factory
 
 3           or serial number of each motor vehicle;
 
 4      (2)  Policy number;
 
 5      (3)  Names of the insured and the insurer; and
 
 6      (4)  Effective dates of coverage including the expiration
 
 7           date.
 
 8      (b)  The identification card shall be in the insured motor
 
 9 vehicle at all times and shall be exhibited to a law enforcement
 
10 officer upon demand.
 
11      (c)  The identification card shall be resistant to forgery
 
12 by whatever means appropriate.  The commissioner shall approve
 
13 the construction, form, and design of the identification card to
 
14 ensure that the card is forgery resistant.
 
15      (d)  The commissioner shall issue a certificate of self-
 
16 insurance periodically, as necessary, for use in each motor
 
17 vehicle insured under section 431:10C-105.
 
18      (e)  Every insurer shall electronically notify the county
 
19 motor vehicle licensing agency within forty-eight hours of the
 
20 issuance, cancellation, nonrenewal, or lapsing of any motor
 
21 vehicle insurance policy."
 
22      SECTION 3.  There is appropriated out of the general
 
23 revenues of the State of Hawaii the sum of $4 or so much thereof
 

 
Page 3                                                     2751
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 as may be necessary for fiscal year 2000-2001 to assist the
 
 2 counties in establishing the motor vehicle identification number
 
 3 database as follows:
 
 4      City and county of Honolulu                              $1
 
 5      County of Maui                                           $1
 
 6      County of Hawaii                                         $1
 
 7      County of Kauai                                          $1
 
 8      The sums appropriated shall be expended by the respective
 
 9 counties for the purposes of this Act.
 
10      SECTION 4.  New statutory material is underscored.
 
11      SECTION 5.  This Act shall take effect on         .