HB 0636

AN ACT relative to mandatory automobile insurance.

SPONSORS: Rep. Arnold, Hills 46

II. Requires adjustments to minimum motor vehicle liability insurance amounts based on the consumer price index.

III. Requires the collection of unexpired number plates prior to cancellation of automobile insurance.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Words and Phrases Defined; Motor Vehicle Liability Policy. Amend RSA 259:61 by inserting after paragraph III the following new paragraph:

IV. The commissioner of insurance shall adjust annually the minimum coverage amounts established in paragraph I using the consumer price index published by the Bureau of Labor Statistics, United States Department of Labor. The commissioner of insurance shall publish the adjusted coverage amounts, which shall apply to all motor vehicle liability policies issued during the calendar year.

2 Application for Registration; Proof of Insurance Required. Amend RSA 261:52 to read as follows:

I. Application for the registration of vehicles may be made by the owner thereof by mail or otherwise to the department, upon blanks prepared by the director. In addition to such other particulars as the director may require, the application shall contain the applicant's birth date, unless the vehicle is registered in the name of a person other than a natural person, in which case the date assigned by the director shall be used as the date of birth. All applications shall contain the words: "This application is signed and any additional information is offered under penalty of unsworn falsification pursuant to RSA 641:3." The proper fee shall be deposited before the application is granted.

II. The applicant shall submit with the application proof of motor vehicle liability insurance indicating that such insurance is valid for the duration of the registration period or longer. No registration shall be issued, renewed, or transferred without adequate proof of insurance.

3 Amount of Proof of Financial Responsibility. Amend RSA 264:20 to read as follows:

264:20 Amount of Proof of Financial Responsibility. Proof of financial responsibility shall mean proof of ability to respond in damages for any liability thereafter incurred, as a result of accidents which occur in New Hampshire, arising out of the ownership, maintenance, control, or use of a motor vehicle, trailer, or semi-trailer in the amount of $25,000 because of bodily injury or death to any one person; and subject to said limit respecting one person, in the amount of $50,000 because of bodily injury to or death to 2 or more persons in any one accident, and in the amount of $25,000 because of injury to and destruction of property in any one accident. The commissioner of insurance shall adjust annually the minimum coverage amounts established in this section using the consumer price index published by the Bureau of Labor Statistics, United States Department of Labor. The commissioner of insurance shall publish the adjusted coverage amounts, which shall apply to all motor vehicle liability policies issued during the calendar year. Whenever required under this chapter such proof in such amounts shall be furnished for each motor vehicle, trailer or semi-trailer registered by such person.

4 New Section; Collection of Plates Upon Cancellation. Amend RSA 417-A by inserting after section 5-a the following new section:

417-A:5-b Collection of Plates Upon Cancellation. No cancellation of an automobile insurance policy shall be effective unless the number plates of the automobile have been returned to the division of motor vehicles. The insurer shall be responsible for collecting the number plates from the insured. For good cause shown, the insurer may request that the department of safety collect the number plates. The provisions of this section shall not apply if the registration of the automobile has expired.

The Department of Safety has determined this bill will increase state highway fund expenditures by an indeterminable amount in FY 2004 and each year thereafter. There will be no fiscal impact on state, county and local revenue or county and local expenditures.

The Department stated this bill intends to require all registered vehicles to have liability insurance. The Department cannot estimate the fiscal impact, but believes the Department will need an additional employee to enter the proof of insurance requirement, extensions and cancellations. Additional computer programming would be needed to keep the database of proof of insurance. There would also be additional costs for training, collection of uninsured plates and accurate tracking.