REPORT TITLE:
Motor Vehicle Insurance


DESCRIPTION:
Requires motor vehicle insurers to give counties electronic
notice of policy issuances, cancellations, non-renewals, and
lapses.  Appropriates funds for data base development.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2751
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR VEHICLE INSURANCE.



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

 1      SECTION 1.  The purpose of this Act is to implement the
 
 2 recommendation of the motor vehicle insurance benefits task force
 
 3 to have the counties establish respective data bases of vehicle
 
 4 identification numbers to enable law enforcement officers to
 
 5 determine whether a motor vehicle is in compliance with the motor
 
 6 vehicle insurance laws and to require motor vehicle insurers to
 
 7 update the data bases on a timely basis.
 
 8      SECTION 2.  Section 431:10C-107, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "�431:10C-107  Verification of insurance:  motor vehicles.
 
11 (a)  Every insurer shall issue to its insureds a motor vehicle
 
12 insurance identification card for each motor vehicle for which
 
13 the basic motor vehicle insurance coverage is written.  The
 
14 identification card shall contain the following:
 
15      (1)  Name of make and factory or serial number of the motor
 
16           vehicle; provided that insurers of five or more motor
 
17           vehicles which are under common registered ownership
 
18           and used in the regular course of business shall not be
 
19           required to indicate the name of make and the factory
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           or serial number of each motor vehicle;
 
 2      (2)  Policy number;
 
 3      (3)  Names of the insured and the insurer; and
 
 4      (4)  Effective dates of coverage including the expiration
 
 5           date.
 
 6      (b)  The identification card shall be in the insured motor
 
 7 vehicle at all times and shall be exhibited to a law enforcement
 
 8 officer upon demand.
 
 9      (c)  The identification card shall be resistant to forgery
 
10 by whatever means appropriate.  The commissioner shall approve
 
11 the construction, form, and design of the identification card to
 
12 ensure that the card is forgery resistant.
 
13      (d)  The commissioner shall issue a certificate of self-
 
14 insurance periodically, as necessary, for use in each motor
 
15 vehicle insured under section 431:10C-105.
 
16      (e)  Every insurer shall electronically notify the county
 
17 motor vehicle licensing agency within forty-eight hours of the
 
18 issuance, cancellation, non-renewal, or lapsing of any motor
 
19 vehicle insurance policy."
 
20      SECTION 3.  There is appropriated out of the general
 
21 revenues of the State of Hawaii the sum of $80,000, or so much
 
22 thereof as may be necessary for fiscal year 2000-2001, to
 
23 establish the motor vehicle identification number data base.
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 4.  The sum appropriated shall be expended $20,000
 
 2 each by the city and county of Honolulu, the county of Maui, the
 
 3 county of Hawaii, and the county of Kauai for the purposes of
 
 4 this Act.
 
 5      SECTION 5.  New statutory material is underscored.
 
 6      SECTION 6.  This Act shall take effect upon its approval.
 
 7 
 
 8                       INTRODUCED BY:  ___________________________