REPORT TITLE:
Mandatory Insurance


DESCRIPTION:
Requires motor vehicle insurers to electronically notify the
insurance commissioner and county motor vehicle licensing
agencies of policies that are lapsed or canceled.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2018
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 legislature finds that the number of
 
 2 uninsured motor vehicles are increasing at a rate that endangers
 
 3 the public welfare.  Uninsured vehicles do not carry insurance to
 
 4 pay for medical expenses and bodily injury claims.  The injured
 
 5 person incurs out-of-pocket expenditures and may be forced to
 
 6 apply for public benefits, causing further burdens on the State's
 
 7 general fund.
 
 8      The legislature further finds that an enforcement problem
 
 9 exists because the police do not know if a motor vehicle is
 
10 uninsured.  Police need a central data base to determine if a
 
11 motor vehicle is uninsured.
 
12      The purpose of this Act is to provide for the notification
 
13 to the insurance commissioner and the county motor vehicle
 
14 licensing agencies of a motor vehicle insurance policy that
 
15 becomes canceled, lapsed, or non-renewed.  In this manner, the
 
16 county police will be able to access county information on
 
17 insurance immediately upon stopping a motor vehicle.
 
18      SECTION 2.  Section 431:10C-104, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 

 
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                                     S.B. NO.           2018
                                                        
                                                        

 
 1      "�431:10C-104  Conditions of operation and registration of
 
 2 motor vehicles.(a)  Except as provided in section 431:10C-105,
 
 3 no person shall operate or use a motor vehicle upon any public
 
 4 street, road, or highway of this State at any time unless such
 
 5 motor vehicle is insured at all times under a motor vehicle
 
 6 insurance policy.
 
 7      (b)  Every owner of a motor vehicle used or operated at any
 
 8 time upon any public street, road, or highway of this State shall
 
 9 obtain a motor vehicle insurance policy upon such vehicle which
 
10 provides the coverage required by this article and shall maintain
 
11 the motor vehicle insurance policy at all times for the entire
 
12 motor vehicle registration period.
 
13      (c)  Any person who violates the provisions of this section
 
14 shall be subject to the provisions of section 431:10C-117(a).
 
15      (d)  The provisions of this article shall not apply to any
 
16 vehicle owned by or registered in the name of any agency of the
 
17 federal government, or to any antique motor vehicle as defined in
 
18 section 249-1.
 
19      (e)  Every insurer shall electronically notify the insurance
 
20 commissioner and each county motor vehicle licensing agency of a
 
21 cancellation, lapsing, or nonrenewal of a motor vehicle insurance
 
22 policy that the insurer has issued.  The notification shall be
 
23 made immediately upon the occurrence of the cancellation,
 
24 lapsing, or nonrenewal."
 

 
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                                     S.B. NO.           2018
                                                        
                                                        

 
 1      SECTION 3.  New statutory material is underscored.
 
 2      SECTION 4.  This Act shall take effect upon its approval.
 
 3 
 
 4                           INTRODUCED BY:  _______________________