Report Title:

No-Fault Ins; Sticker

Description:

Requires stickers on motor vehicles as proof of effective no-fault insurance policy.

HOUSE OF REPRESENTATIVES

H.B. NO.

852

TWENTY-SECOND LEGISLATURE, 2003

 

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. Section 431:10C-107, Hawaii Revised Statutes, is amended to read as follows:

"§431:10C-107 Verification of insurance: motor vehicles. (a) Every insurer shall issue to its insureds a sticker and a motor vehicle insurance identification card for each motor vehicle for which the basic motor vehicle insurance coverage is written. The identification card shall contain the following:

(1) Name of make and factory or serial number of the motor vehicle; provided that insurers of five or more motor vehicles which are under common registered ownership and used in the regular course of business shall not be required to indicate the name of make and the factory or serial number of each motor vehicle;

(2) Policy number;

(3) Names of the insured and the insurer; and

(4) Effective dates of coverage including the expiration date.

(b) The identification card shall be in the insured motor vehicle at all times and shall be exhibited to a law enforcement officer upon demand. The sticker shall be affixed to the vehicle.

(c) The identification card and the sticker shall be resistant to forgery by whatever means appropriate. The commissioner shall approve the construction, form, and design of the identification card and sticker to ensure that the card and the sticker is forgery resistant.

(d) The commissioner shall issue a sticker and certificate of self-insurance periodically, as necessary, for use in each motor vehicle insured under section 431:10C-105.

(e) The identification card and sticker issued by an insurer shall not be issued for a period exceeding the period for which premiums have been paid or earned; provided that this subsection shall apply only to the first application of a person for a motor vehicle insurance policy and shall not apply to applications for commercial and fleet vehicles."

SECTION 2. Section 431:10C-108, Hawaii Revised Statutes, is amended to read as follows:

"§431:10C-108 Unlawful use of motor vehicle insurance identification card[.] or sticker. It shall be a violation of this article:

(1) For any person to make, issue, or knowingly use any fictitious or fraudulently altered motor vehicle insurance identification card[;] or sticker; or

(2) For any person to display or cause or permit to be displayed a motor vehicle insurance identification card or sticker knowing that the motor vehicle insurance policy was canceled as provided in section 431:10C-111 and section 431:10C-112."

SECTION 3. Section 431:10C-109, Hawaii Revised Statutes, is amended to read as follows:

"§431:10C-109 Motor vehicle insurance identification card and sticker after cancellation of policy; return to insurer, civil sanctions. (a) When a motor vehicle insurance policy is canceled before the end of the policy period, the insured [shall], within thirty days after being notified of the cancellation:

(1) [Return] Shall return the motor vehicle insurance identification card and sticker to the insurer for the policy; or

(2) If the card or sticker is lost or stolen, shall submit to the insurer an affidavit signed by the insured stating that fact to the insurer.

(b) The insurer's notice of cancellation shall include:

(1) The reason for the cancellation; and

(2) A statement of actions which may be taken under this section if the card or sticker is not returned.

(c) If the card, sticker, or affidavit is not returned within the period specified, the insurer [may]:

(1) If the premiums for the period shown on the motor vehicle insurance identification card have been prepaid, may withhold the unearned portions of the premiums until the identification card or an affidavit signed by the insured has been returned. [In addition, all] All premiums shall be considered "earned" until the card is returned.

(2) If the premiums for the period shown on the identification card have not been paid in full, may bring a civil action for three times the unpaid portion of the premiums. Notwithstanding section 607-14 and section 607-17, the insurer shall be awarded reasonable attorney's fees and court costs. If the motor vehicle insurance identification card is returned after the civil action is filed but before the matter is taken to trial, the insurer shall be awarded damages of not less than $100, but not more than the amount of the unpaid premiums together with reasonable attorney's fees and costs as provided in this section.

(d) Notwithstanding the provisions of this section, the imposition of criminal sanctions under section 431:10C-117 shall not be precluded."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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