Provides motor vehicle insurance premium discounts to those who complete an accident prevention course.

A BILL FOR AN ACT

SECTION 1. The legislature finds that most people do not continue to receive training after their initial training for a driver's license. However, continuing education in driver training is extremely valuable in refreshing a driver's knowledge of driving safety. Most states already have continuing driver education legislation in place. In these states, insurance premiums have been reduced by ten to twenty per cent.

The purpose of this Act is to authorize the motor vehicle insurers to reduce premium charges for insureds who complete a motor vehicle accident prevention course.

SECTION 2. Chapter 431, article 10C, part II, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§431:10C-   Premium reductions. (a) Any rates, rating schedules, or rating manuals for the liability, personal injury protection, and collision coverages of a motor vehicle insurance policy submitted to or filed with the commissioner may provide for an appropriate reduction in premium charges as to those coverages when the principal operator on the covered vehicle is an insured who successfully completes a motor vehicle accident prevention course approved by the department of transportation. Any discount used by an insurer shall be presumed appropriate unless credible data demonstrates otherwise.

(b) The premium reduction allowed by this section shall be effective for an insured for a three-year period after successful completion of the approved course, except that the insurer may require conditions of providing and maintaining the discount.

(c) Upon successfully completing the approved course, each person shall be issued a certificate by the organization offering the course, which shall be used to qualify for the premium discount allowed by this section.

(d) This section shall not apply in the event the approved course is specified by a court or other governmental entity resulting from a moving traffic violation.

(e) Each participant shall take an approved course every three years to continue to be eligible for the reduction in premiums."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.