Report Title:

MV Insurance; Low-income Insured

 

Description:

Establishes a pilot program of low-cost insurance for low-risk, low-income individuals.

 

THE SENATE

S.B. NO.

947

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO MOTOR VEHICLE INSURANCE.

 

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

SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10C to be appropriately designated and to read as follows:

"431:10C- Low-cost, low-income policies. (a) The commissioner shall establish a program to provide motor vehicle insurance coverage for purchase to low-income, low-risk state residents at an initial annual premium of $300. The premium shall be revised every two years to reflect changes in the consumer price index for Honolulu, published by the U.S. Department of Labor.

(b) A person shall be a low-income driver if the person's household income does not exceed one hundred fifty per cent of the federal poverty level and the person is not a person receiving public assistance benefits. A low-risk driver is a person who has not violated any provision under chapter 291 or 291C within the last five years and is not eligible for coverage under the joint underwriting plan.

(c) The program shall consist of all insurers authorized to write and engage in writing motor vehicle insurance in this State, except those insurers writing motor vehicle insurance exclusively under section 431:10C-106. All costs incurred in the operation of the program, including claims paid, shall be allocated fairly and equitably among the program insurers.

(d) The commissioner shall adopt rules under chapter 91 to implement this section."

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2001-2002, for the commissioner to establish the low-cost insurance program for low-income, low-risk drivers.

SECTION 3. The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2001 and shall be repealed on June 30, 2006.

INTRODUCED BY:

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