REPORT TITLE:
Free No-Fault Insurance


DESCRIPTION:
Amends free no-fault insurance coverage statute by adding a
grandfather provision which would restore free no-fault coverage
to individuals who received public assistance benefits in the
form of medical services prior to 7/1/94, and are still receiving
the benefits.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           485
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO FREE NO-FAULT MOTOR VEHICLE INSURANCE.



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

 1      SECTION 1.  Section 431:10C-407, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  The plan shall provide all personal injury protection
 
 4 benefits and services and bodily injury and property damage
 
 5 liability coverages to the limits and coverages specified in this
 
 6 article for all classes of persons, motor vehicles, and motor
 
 7 vehicle uses specified in this part upon the payment of premiums
 
 8 as provided in subpart C, as follows:
 
 9      (1)  The plan shall provide personal injury protection
 
10           benefits and policies for each of the following
 
11           classes, and each class shall be able to secure a
 
12           personal injury protection and bodily injury and
 
13           property damage liability policy through the plan:
 
14           (A)  All motor vehicles owned by licensed assigned risk
 
15                drivers as the commissioner, by rules, shall
 
16                define.  The commissioner shall regulate the class
 
17                in accordance with the general practice of the
 
18                industry, the applicable results, if any, of the
 
19                commissioner's examination of the motor vehicle
 

 
Page 2                                                     
                                     S.B. NO.           485
                                                        
                                                        

 
 1                insurers' business records and experience, and any
 
 2                applicable and scientifically credible
 
 3                governmental or academic studies of the multi-
 
 4                accident or high-risk motor vehicle driver;
 
 5           (B)  All motor vehicles owned by licensed drivers
 
 6                convicted within the thirty-six months immediately
 
 7                preceding the date of application, in any
 
 8                jurisdiction of any one or more of the offenses
 
 9                of, or of the offenses cognate to:
 
10                (i)  Heedless and careless driving;
 
11               (ii)  Driving while license suspended or revoked;
 
12              (iii)  Leaving the scene of an accident;
 
13               (iv)  Manslaughter, if resulting from the operation
 
14                     of a motor vehicle; or
 
15                (v)  Driving under the influence of an
 
16                     intoxicating liquor as provided in section
 
17                     291-4 or any drug as provided in section
 
18                     291-7;
 
19           (C)  All commercial uses, first class, defined as any
 
20                commercial use engaged in the transport of
 
21                passengers for hire or gratuity;
 
22           (D)  All commercial uses, second class, defined as any
 

 
 
 
Page 3                                                     
                                     S.B. NO.           485
                                                        
                                                        

 
 1                commercial, business, or institutional use other
 
 2                than the transport of passengers as described in
 
 3                subparagraph (C) or the exclusive use of a vehicle
 
 4                for domestic-household-familial purposes; and
 
 5           (E)  All other motor vehicles, not classified under
 
 6                subparagraph (A), (B), (C), or (D), owned by
 
 7                licensed drivers who are unable to obtain motor
 
 8                vehicle insurance policies and optional additional
 
 9                insurance through ordinary methods;
 
10      (2)  The plan shall provide personal injury protection
 
11           benefits and bodily injury and property damage policies
 
12           for all classes of persons, motor vehicles, and motor
 
13           vehicle uses, at the premiums specified under subpart
 
14           C, at the option of the owners, for the following
 
15           classes, which the commissioner, by rules, shall
 
16           further define and regulate:
 
17           (A)  All licensed drivers, or unlicensed permanently
 
18                disabled individuals unable to operate their motor
 
19                vehicles, who are receiving public assistance
 
20                benefits consisting of direct cash payments, or
 
21                who received public assistance benefits in the
 
22                form of medical services prior to July 1, 1996,
 

 
 
 
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                                     S.B. NO.           485
                                                        
                                                        

 
 1                and are still receiving the benefits, through the
 
 2                department of human services, or benefits from
 
 3                either the [supplemental security income]
 
 4                Supplemental Security Income program or Disability
 
 5                Insurance under the Social Security
 
 6                Administration; provided that the licensed
 
 7                drivers, or unlicensed permanently disabled
 
 8                individuals unable to operate their motor
 
 9                vehicles, are the sole registered owners of the
 
10                motor vehicles to be insured; provided further
 
11                that not more than one vehicle per public
 
12                assistance unit shall be insured under this part,
 
13                unless extra vehicles are approved by the
 
14                department of human services as being necessary
 
15                for medical or employment purposes; provided
 
16                further that the motor vehicle to be insured shall
 
17                be used strictly for personal purposes, and not
 
18                for commercial purposes; and
 
19           (B)  Any licensed physically handicapped driver,
 
20                including drivers with any auditory limitation.
 
21           Each category of driver/owner under subparagraphs (A)
 
22           and (B) may secure motor vehicle insurance coverage
 

 
 
 
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                                     S.B. NO.           485
                                                        
                                                        

 
 1           through the plan at the individual's option; provided
 
 2           any previous motor vehicle insurance policy has expired
 
 3           or has been canceled.  Any person becoming eligible for
 
 4           plan coverage under subparagraph (A) shall first
 
 5           exhaust all paid coverage under any motor vehicle
 
 6           insurance policy then in force before becoming eligible
 
 7           for plan coverage.
 
 8                Any person eligible or becoming eligible under
 
 9           rules adopted by the commissioner under subparagraph
 
10           (B), may at any time elect coverage under the plan and
 
11           terminate any prior private insurer's coverage.
 
12                A certificate shall be issued by the department of
 
13           human services indicating that the person is a bona
 
14           fide public assistance recipient as defined in
 
15           subparagraph (A).  The certificate shall be deemed a
 
16           policy for the purposes of this chapter [431] upon the
 
17           issuance of a valid motor vehicle insurance
 
18           identification card pursuant to section 431:10C-107;
 
19           and
 
20      (3)  Under the joint underwriting plan, the required motor
 
21           vehicle policy coverages as provided in section
 
22           431:10C-301 shall be offered by every insurer to each
 

 
 
 
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                                     S.B. NO.           485
                                                        
                                                        

 
 1           eligible applicant assigned by the bureau.  In
 
 2           addition, uninsured motorist and underinsured motorist
 
 3           coverages shall be offered in conformance with section
 
 4           431:10C-301, and optional additional coverages shall be
 
 5           offered in conformance with section 431:10C-302, for
 
 6           each class except [that] the class defined in paragraph
 
 7           (2)(A), as the commissioner, by rules, shall provide."
 
 8      SECTION 2.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 3.  This Act shall take effect upon its approval.
 
11 
 
12                              INTRODUCED BY:______________________