HOUSE OF REPRESENTATIVES	H.R. NO.	230
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

HOUSE RESOLUTION

REQUESTING A STUDY ON THE FEASIBILITY OF requiring proof of MOTOR VEHICLE INSURANCE to PURCHASE fuel.

     WHEREAS, according to a January 2009 article in The Honolulu Advertiser, an Insurance Research Council report stated that one in eight, or approximately twelve per cent, of Hawaii drivers were uninsured in 2007; and

     WHEREAS, the report by the Insurance Research Council also found a strong correlation between the per cent of uninsured motorists and the unemployment rate; and

     WHEREAS, an increase in the unemployment rate of one percentage point is associated with an increase in the uninsured motorist rate of more than three-quarters of a percentage point; and

     WHEREAS, the Insurance Commissioner responded to the report and said the rate could even be higher, and some analysts believed several years ago that it was closer to one in five, or twenty per cent; and

     WHEREAS, uninsured motorists are a problem because when an uninsured motorist is in an accident, other motorists often have to sue to collect damages or rely on insurance to recover any loss; and

     WHEREAS, uninsured motorist coverage is intended to pay for damages to an insured driver on behalf of an uninsured motorist; and

     WHEREAS, one suggested approach to removing uninsured drivers from the road is to deny them access to purchase gasoline at gas stations, by issuing motor vehicle insurance cards to insured motorists to allow them to purchase gas; and

     WHEREAS, a motor vehicle insurance card that is electronically readable has other benefits, such as:

     (1)  Reducing the number of uninsured motorists;

     (2)  Reducing insurance costs by reducing the premium of uninsured motorist coverage; and

     (3)  Coordinating insurance requirements with other requirements such as driver licenses and safety checks; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2011, that the Insurance Commissioner is requested to study the feasibility of requiring motor vehicle insurance companies to issue motor vehicle insurance cards to insured drivers and to require that the card be scanned electronically or examined by sellers of gasoline as a precondition to purchasing gasoline; and

     BE IT FURTHER RESOLVED that the Insurance Commissioner report its findings and recommendations to the Legislature, including any proposed legislation, no later than twenty days prior to the convening of the Regular Session of 2012; and

     BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Insurance Commissioner.

OFFERED BY:

_____________________________

Report Title: 

Motor Vehicle Insurance Cards; Gas Purchases