Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 1433 entitled:

begs leave to report as follows:

The purpose of this measure is to further penalize uninsured motorists. Under this measure, the driver of an uninsured motor vehicle that is involved in an accident may not bring a lawsuit against any other person, and passengers in an uninsured vehicle may only sue the driver of the vehicle.

Your Committee received testimony in support of this measure from State Farm Insurance Company. The Department of Commerce and Consumer Affairs and Consumer Lawyers of Hawaii submitted testimony in opposition to this measure. The Hawaii Insurers Council provided comments.

Your Committee finds that despite the existing penalties for driving without insurance, uninsured motorists continue to be a major problem in Hawaii. When uninsured motorists are involved in an accident, the costs associated with that accident are borne by the State and by other insured motorists.

Your Committee finds that it is unfair to require the State and insured motorists to pay for persons who drive without insurance. This measure would provide further deterrence, by prohibiting drivers of uninsured vehicles from suing any other party to an accident, regardless of who is at fault. Passengers in uninsured vehicles are also precluded from suing any person other than the driver of the vehicle. These measures will provide extra incentive for drivers to obtain auto insurance, as required by law.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1433 and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.