HOUSE OF REPRESENTATIVES

H.B. NO.

1967

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to Electronic verification of insurancE motor vehicles.

 

 

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

 


SECTION 1. The purpose of this Act is to amend Section 431:10C-107, Section 431:10G-106 and Section 286-116, Hawaii Revised Statutes, to allow for the presentation of electronic proof of motor vehicle insurance.

Forty-three states including California have already passed similar legislation, reflecting the need for the state of Hawaii to modernize the outdated paper-based insurance identification system. Under the proposed changes, motorists will be guaranteed the right to present proof of current motor vehicle insurance on an electronic mobile device. This change will reduce the number of tickets issued to motorists for their inability to produce a current paper copy of their active insurance policy. As a result, the number of motorists utilizing the court system for "fix it tickets" will decline, saving the state and tax payers money.

SECTION 2. 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 motor vehicle insurance identification card or electronic evidence of insurance coverage, or both, for each motor vehicle for which the basic motor vehicle insurance coverage is written. The identification [card] issued 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 issued [card] shall be maintained in the insured motor vehicle at all times and shall be exhibited to a law enforcement officer upon demand.

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

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

(e) The identification [card] 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 3. Section 431:10G-106 is amended to read as follows:

"431:10G-106 Verification of insurance. Every insurer shall issue to each of its insureds a proof of insurance card or electronic evidence of insurance coverage, or both for each motorcycle or motor scooter for which a liability policy under this article is written. The proof of insurance card or electronic evidence of insurance coverage issued shall show the following:

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

(2) Policy number;

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

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

The proof of insurance card or electronic evidence of insurance coverage, or both shall be carried on the person operating the insured motorcycle or motor scooter at all times and shall be exhibited to a law enforcement officer upon demand."

SECTION 4. Section 286-116, Hawaii Revised Statutes, is amended to read as follows:

"[286-116] License, proof of insurance, [insurance identification card,] possession, exhibition. (a) Every licensee shall have a valid driver's license in the licensee's immediate possession at all times, and paper-based or electronic proof of [a] valid motor vehicle or liability insurance [identification card] applicable to the motor vehicle operated as required under section 431:10C-107 [and section 431:10G-106,] when operating a motor vehicle, and section 431:10G-106 when operating a motorcycle, or motor scooter, and shall display the same upon demand of a police officer. Every police officer or law enforcement officer when stopping a vehicle or inspecting a vehicle for any reason shall demand that the driver or owner display the driver's or owner's driver's license and paper-based or electronic proof of insurance. [identification card.] No person charged with violating this section shall be convicted if the person produces in court, or proves from the proper official or other records that the person was the holder of a driver's license or [a] paper-based or electronic proof of motor vehicle or liability insurance [identification card] and policy conforming to article 10C and article 10G of chapter 431 or a certificate of self-insurance issued by the insurance commissioner pursuant to section 431:10C-107 and section 431:10G-103, theretofore issued to the person and valid at the time of the person's arrest.

(b) At any time a law enforcement officer finds a motor vehicle in operation by a driver not in possession of paper-based or electronic proof of [the] motor vehicle or liability insurance [identification card] as required under section 431:10C-107 and section 431:10G-106, the officer shall issue a citation with the earliest possible date for court appearance in every instance.

(c) In all instances in which a citation shall be issued under subsection (b), whenever the driver cited is not found to be the registered owner of the motor vehicle under operation, the citation shall also be issued to the driver as the owner's agent and to the registered owner of the motor vehicle. Whenever the registered owner of any motor vehicle permits any person to operate the registered owner's motor vehicle, the registered owner appoints, designates, and constitutes the driver the registered owner's agent for all purposes under this section and section 431:10C-107, section 431:10G-106, and section 805-13.

(d) The operation of any motor vehicle required to be licensed on a highway by a driver, whether or not licensed, who knows, or has reason to believe, that the motor vehicle is not insured in compliance with article 10C and article 10G of chapter 431, shall constitute a violation of this chapter.

(e) Any registered owner of any motor vehicle required to be licensed, who directly or indirectly permits the operation of such motor vehicle on any highway at any time the motor vehicle is not insured in compliance with article 10C and article 10G of chapter 431, shall be guilty of a violation of this chapter. The registered owner shall, in all cases, be presumed to know whether a motor vehicle is insured in compliance with article 10C and article 10G of chapter 431."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

 

 

INTRODUCED BY:

_____________________________

 

 

 

_____________________________


 


 

Report Title:

Electronic Proof of Motor Vehicle Insurance

 

 

Description:

Guarantees motorists the right to display evidence of current motor vehicle insurance by electronic mobile device.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.