Motor Vehicle Insurance

Requires insurers to notify the city and county of Honolulu
within 48 hours of issuance, cancellation, non-renewal, or lapse
of a motor vehicle insurance policy.

THE SENATE                              S.B. NO.           2740
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that in section 2 of Act
 2 142, Session Laws of Hawaii 1999, the 1999 legislature requested
 3 the Motor Vehicle Insurance Benefits Task Force to submit its
 4 findings and final recommendations to the 2000 legislature.  This
 5 Act represents the Task Force's recommendation to establish a
 6 data base of vehicle identification numbers that will enable law
 7 enforcement officers to determine whether a motor vehicle has
 8 complied with the motor vehicle insurance laws and to require
 9 motor vehicle insurers to update this data base on a timely
10 basis.
11      SECTION 2.  Section 431:10C-107, Hawaii Revised Statutes, is
12 amended to read as follows:
13      "431:10C-107  Verification of insurance:  motor
14 vehicles[.]; notification of issuance, cancellation, non-renewal,
15 or lapse of motor vehicle insurance.  (a)  Every insurer shall
16 issue to its insureds a motor vehicle insurance identification
17 card for each motor vehicle for which the basic motor vehicle
18 insurance coverage is written.  The identification card shall
19 contain the following:

Page 2                                                     
                                     S.B. NO.           2740

 1      (1)  Name of make and factory or serial number of the motor
 2           vehicle; provided that insurers of five or more motor
 3           vehicles which are under common registered ownership
 4           and used in the regular course of business shall not be
 5           required to indicate the name of make and the factory
 6           or serial number of each motor vehicle;
 7      (2)  Policy number;
 8      (3)  Names of the insured and the insurer; and
 9      (4)  Effective dates of coverage including the expiration
10           date.
11      (b)  The identification card shall be in the insured motor
12 vehicle at all times and shall be exhibited to a law enforcement
13 officer upon demand.
14      (c)  The identification card shall be resistant to forgery
15 by whatever means appropriate.  The commissioner shall approve
16 the construction, form, and design of the identification card to
17 ensure that the card is forgery resistant.
18      (d)  The commissioner shall issue a certificate of self-
19 insurance periodically, as necessary, for use in each motor
20 vehicle insured under section 431:10C-105.
21      (e)  In counties where the population exceeds 500,000, every
22 insurer shall electronically notify the motor vehicle and
23 licensing division within forty-eight hours of the issuance,

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                                     S.B. NO.           2740

 1 cancellation, non-renewal, or lapsing of any motor vehicle
 2 insurance policy."
 3      SECTION 3.  There is appropriated out of the general
 4 revenues of the State of Hawaii the sum of $20,000, or so much
 5 thereof as may be necessary for fiscal year 2000-2001, to
 6 establish the vehicle identification number data base as provided
 7 by section 431:10C-107(e), Hawaii Revised Statutes.
 8      SECTION 4.  The sum appropriated shall be expended by the
 9 city and county of Honolulu for the purposes of this Act.
10      SECTION 5.  Statutory material to be repealed is bracketed.
11 New statutory material is underscored.
12      SECTION 6.  This Act shall take effect on July 1, 2000.
14                       INTRODUCED BY:  ___________________________