Subpart B. Coverages and Assignment of Claims

 

§431:10C-407  Classifications.  (a)  Thecommissioner shall establish classifications of eligible persons and uses forwhich the joint underwriting plan shall provide both the required motor vehicleinsurance policies and any optional additional insurance an eligible person oruser applies for.  The commissioner shall, by rule, establish, implement, andsupervise the joint underwriting plan, through the bureau, assuring thatinsurance for motor vehicles will be conveniently and expeditiously afforded,subject only to payment or provision for payment of the premium, to allapplicants for insurance required by this part to provide insurance for paymentof bodily injury and property damage liability insurance, or optionaladditional benefits, and who cannot reasonably obtain insurance at rates not inexcess of those applicable to applicants under the plan, or who otherwise arein good faith entitled to, but unable to obtain, the insurance through ordinarymethods.

(b)  The plan shall provide all personal injuryprotection benefits and services and bodily injury and property damageliability coverages to the limits and coverages specified in this article forall classes of persons, motor vehicles, and motor vehicle uses specified inthis part upon the payment of premiums as provided in subpart C, as follows:

(1)  The plan shall provide personal injury protectionbenefits and policies for each of the following classes, and each class shallbe able to secure a personal injury protection and bodily injury and propertydamage liability policy through the plan:

(A)  All motor vehicles owned by licensedassigned risk drivers as the commissioner, by rules, shall define.  Thecommissioner shall regulate the class in accordance with the general practiceof the industry, the applicable results, if any, of the commissioner'sexamination of the motor vehicle insurers' business records and experience, andany applicable and scientifically credible governmental or academic studies ofthe multi-accident or high-risk motor vehicle driver;

(B)  All motor vehicles owned by licenseddrivers convicted within the thirty-six months immediately preceding the dateof application, in any jurisdiction of any one or more of the offenses of, orof the offenses cognate to:

(i)  Heedless and careless driving;

(ii)  Driving while license suspended or revoked;

(iii)  Leaving the scene of an accident;

(iv)  Manslaughter, if resulting from theoperation of a motor vehicle;

(v)  Operating a vehicle under the influence ofan intoxicant as provided in section 291E-61; or

(vi)  Driving under the influence of anintoxicating liquor as provided in section 291-4 or any drug as provided insection 291-7, as those sections were in effect on or before December 31, 2001;

(C)  All commercial uses, first class, definedas any commercial use engaged in the transport of passengers for hire orgratuity;

(D)  All commercial uses, second class, definedas any commercial, business, or institutional use other than the transport ofpassengers as described in subparagraph (C) or the exclusive use of a vehiclefor domestic-household-familial purposes; and

(E)  All other motor vehicles, not classifiedunder subparagraph (A), (B), (C), or (D), owned by licensed drivers who areunable to obtain motor vehicle insurance policies and optional additionalinsurance through ordinary methods;

(2)  The plan shall provide personal injury protectionbenefits and bodily injury and property damage policies for all classes of persons,motor vehicles, and motor vehicle uses, at the premiums specified under subpartC, at the option of the owners, for the following classes, which thecommissioner, by rules, shall further define and regulate:

(A)  All licensed drivers, or unlicensedpermanently disabled individuals unable to operate their motor vehicles, whoare receiving public assistance benefits consisting of direct cash payments, orwho received public assistance benefits in the form of medical services priorto July 1, 1994, and are still receiving the benefits, through the departmentof human services, or benefits from the Supplemental Security Income programunder the Social Security Administration; provided that the licensed drivers,or unlicensed permanently disabled individuals unable to operate their motorvehicles, are the sole registered owners of the motor vehicles to be insured;provided further that not more than one vehicle per public assistance unitshall be insured under this part, unless extra vehicles are approved by thedepartment of human services as being necessary for medical or employmentpurposes; provided further that the motor vehicle to be insured shall be usedstrictly for personal purposes, and not for commercial purposes;

(B)  Any licensed physically handicappeddriver, including drivers with any auditory limitation; and

(C)  Any licensed driver who is a minor underfoster care and whose parents are unable to pay for the minor's motor vehicleinsurance as provided in section 587‑90.

Each category of driver/owner undersubparagraphs (A), (B), and (C) may secure motor vehicle insurance coveragethrough the plan at the individual's option; provided any previous motorvehicle insurance policy has expired or has been canceled.  Any person becomingeligible for plan coverage under subparagraph (A) shall first exhaust all paidcoverage under any motor vehicle insurance policy then in force before becomingeligible for plan coverage.

Any person eligible or becoming eligibleunder rules adopted by the commissioner under subparagraph (B) or (C) may atany time elect coverage under the plan and terminate any prior privateinsurer's coverage.

A certificate shall be issued by thedepartment of human services indicating that the person is a bona fide publicassistance recipient as defined in subparagraph (A).  The certificate shall bedeemed a policy for the purposes of this chapter upon the issuance of a validmotor vehicle insurance identification card pursuant to section 431:10C‑107;and

(3)  Under the joint underwriting plan, the requiredmotor vehicle policy coverages as provided in section 431:10C‑301 shallbe offered by every insurer to each eligible applicant assigned by the bureau. In addition, uninsured motorist and underinsured motorist coverages shall beoffered in conformance with section 431:10C‑301, and optional additionalcoverages shall be offered in conformance with section 431:10C‑302, foreach class except the class defined in paragraph (2)(A), as the commissioner,by rules, shall provide.

(c)  The commissioner may further refine thedefinitions of the classifications provided for in subsection (b). [L 1987, c347, pt of §2; am L 1990, c 253, §2; am L 1993, c 205, §29; am L Sp 1993, c 4,§7; am L 1994, c 225, §1; am L 1997, c 251, §51; am L 1998, c 275, §31; am L1999, c 142, §3; am L 2001, c 157, §32; am L 2006, c 289, §4]