REPORT TITLE:
Motor Vehicle Insurance


DESCRIPTION:
Restores motor vehicle insurance coverage under the joint
underwriting plan to certain recipients of public assistance
medical services benefits. (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        485
THE SENATE                              S.B. NO.           S.D. 1
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                                                     485
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1                insurers' business records and experience, and any
 
 2                applicable and scientifically credible
 
 3                governmental or academic studies of the
 
 4                multi-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
 
23                commercial, business, or institutional use other
 

 
Page 3                                                     485
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1                than the transport of passengers as described in
 
 2                subparagraph (C) or the exclusive use of a vehicle
 
 3                for domestic-household-familial purposes; and
 
 4           (E)  All other motor vehicles, not classified under
 
 5                subparagraph (A), (B), (C), or (D), owned by
 
 6                licensed drivers who are unable to obtain motor
 
 7                vehicle insurance policies and optional additional
 
 8                insurance through ordinary methods;
 
 9      (2)  The plan shall provide personal injury protection
 
10           benefits and bodily injury and property damage policies
 
11           for all classes of persons, motor vehicles, and motor
 
12           vehicle uses, at the premiums specified under subpart
 
13           C, at the option of the owners, for the following
 
14           classes, which the commissioner, by rules, shall
 
15           further define and regulate:
 
16           (A)  All licensed drivers, or unlicensed permanently
 
17                disabled individuals unable to operate their motor
 
18                vehicles, who are receiving public assistance
 
19                benefits consisting of direct cash payments, or
 
20                who received public assistance benefits in the
 
21                form of medical services prior to July 1, 1994,
 
22                and are still receiving the benefits, through the
 
23                department of human services, or benefits from the
 

 
Page 4                                                     485
                                     S.B. NO.           S.D. 1
                                                        
                                                        

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

 
Page 5                                                     485
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           exhaust all paid coverage under any motor vehicle
 
 2           insurance policy then in force before becoming eligible
 
 3           for plan coverage.
 
 4                Any person eligible or becoming eligible under
 
 5           rules adopted by the commissioner under subparagraph
 
 6           (B), may at any time elect coverage under the plan and
 
 7           terminate any prior private insurer's coverage.
 
 8                A certificate shall be issued by the department of
 
 9           human services indicating that the person is a bona
 
10           fide public assistance recipient as defined in
 
11           subparagraph (A).  The certificate shall be deemed a
 
12           policy for the purposes of this chapter [431] upon the
 
13           issuance of a valid motor vehicle insurance
 
14           identification card pursuant to section 431:10C-107;
 
15           and
 
16      (3)  Under the joint underwriting plan, the required motor
 
17           vehicle policy coverages as provided in section
 
18           431:10C-301 shall be offered by every insurer to each
 
19           eligible applicant assigned by the bureau.  In
 
20           addition, uninsured motorist and underinsured motorist
 
21           coverages shall be offered in conformance with section
 
22           431:10C-301, and optional additional coverages shall be
 
23           offered in conformance with section 431:10C-302, for
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           each class except [that] the class defined in paragraph
 
 2           (2)(A), as the commissioner, by rules, shall provide."
 
 3      SECTION 2.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 3.  This Act shall take effect upon its approval.