Subpart B. 

Coverages and Assignment of Claims

 

     §431:10C-407  Classifications.  (a)  The

commissioner shall establish classifications of eligible persons and uses for

which the joint underwriting plan shall provide both the required motor vehicle

insurance policies and any optional additional insurance an eligible person or

user applies for.  The commissioner shall, by rule, establish, implement, and

supervise the joint underwriting plan, through the bureau, assuring that

insurance for motor vehicles will be conveniently and expeditiously afforded,

subject only to payment or provision for payment of the premium, to all

applicants for insurance required by this part to provide insurance for payment

of bodily injury and property damage liability insurance, or optional

additional benefits, and who cannot reasonably obtain insurance at rates not in

excess of those applicable to applicants under the plan, or who otherwise are

in good faith entitled to, but unable to obtain, the insurance through ordinary

methods.

     (b)  The plan shall provide all personal injury

protection benefits and services and bodily injury and property damage

liability coverages to the limits and coverages specified in this article for

all classes of persons, motor vehicles, and motor vehicle uses specified in

this part upon the payment of premiums as provided in subpart C, as follows:

     (1)  The plan shall provide personal injury protection

benefits and policies for each of the following classes, and each class shall

be able to secure a personal injury protection and bodily injury and property

damage liability policy through the plan:

         (A)  All motor vehicles owned by licensed

assigned risk drivers as the commissioner, by rules, shall define.  The

commissioner shall regulate the class in accordance with the general practice

of the industry, the applicable results, if any, of the commissioner's

examination of the motor vehicle insurers' business records and experience, and

any applicable and scientifically credible governmental or academic studies of

the multi-accident or high-risk motor vehicle driver;

         (B)  All motor vehicles owned by licensed

drivers convicted within the thirty-six months immediately preceding the date

of application, in any jurisdiction of any one or more of the offenses of, or

of 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 the

operation of a motor vehicle;

              (v)  Operating a vehicle under the influence of

an intoxicant as provided in section 291E-61; or

             (vi)  Driving under the influence of an

intoxicating liquor as provided in section 291-4 or any drug as provided in

section 291-7, as those sections were in effect on or before December 31, 2001;

         (C)  All commercial uses, first class, defined

as any commercial use engaged in the transport of passengers for hire or

gratuity;

         (D)  All commercial uses, second class, defined

as any commercial, business, or institutional use other than the transport of

passengers as described in subparagraph (C) or the exclusive use of a vehicle

for domestic-household-familial purposes; and

         (E)  All other motor vehicles, not classified

under subparagraph (A), (B), (C), or (D), owned by licensed drivers who are

unable to obtain motor vehicle insurance policies and optional additional

insurance through ordinary methods;

     (2)  The plan shall provide personal injury protection

benefits and bodily injury and property damage policies for all classes of persons,

motor vehicles, and motor vehicle uses, at the premiums specified under subpart

C, at the option of the owners, for the following classes, which the

commissioner, by rules, shall further define and regulate:

         (A)  All licensed drivers, or unlicensed

permanently disabled individuals unable to operate their motor vehicles, who

are receiving public assistance benefits consisting of direct cash payments, or

who received public assistance benefits in the form of medical services prior

to July 1, 1994, and are still receiving the benefits, through the department

of human services, or benefits from the Supplemental Security Income program

under the Social Security Administration; provided that the licensed drivers,

or unlicensed permanently disabled individuals unable to operate their motor

vehicles, are the sole registered owners of the motor vehicles to be insured;

provided further that not more than one vehicle per public assistance unit

shall be insured under this part, unless extra vehicles are approved by the

department of human services as being necessary for medical or employment

purposes; provided further that the motor vehicle to be insured shall be used

strictly for personal purposes, and not for commercial purposes;

         (B)  Any licensed physically handicapped

driver, including drivers with any auditory limitation; and

         (C)  Any licensed driver who is a minor under

foster care and whose parents are unable to pay for the minor's motor vehicle

insurance as provided in [section 346-17.3].

          Each category of driver/owner under

subparagraphs (A), (B), and (C) may secure motor vehicle insurance coverage

through the plan at the individual's option; provided any previous motor

vehicle insurance policy has expired or has been canceled.  Any person becoming

eligible for plan coverage under subparagraph (A) shall first exhaust all paid

coverage under any motor vehicle insurance policy then in force before becoming

eligible for plan coverage.

              Any person eligible or becoming eligible

under rules adopted by the commissioner under subparagraph (B) or (C) may at

any time elect coverage under the plan and terminate any prior private

insurer's coverage.

              A certificate shall be issued by the

department of human services indicating that the person is a bona fide public assistance

recipient as defined in subparagraph (A).  The certificate shall be deemed a

policy for the purposes of this chapter upon the issuance of a valid motor

vehicle insurance identification card pursuant to section 431:10C‑107;

and

     (3)  Under the joint underwriting plan, the required

motor vehicle policy coverages as provided in section 431:10C‑301 shall

be offered by every insurer to each eligible applicant assigned by the bureau. 

In addition, uninsured motorist and underinsured motorist coverages shall be

offered in conformance with section 431:10C‑301, and optional additional

coverages shall be offered in conformance with section 431:10C‑302, for

each class except the class defined in paragraph (2)(A), as the commissioner,

by rules, shall provide.

     (c)  The commissioner may further refine the

definitions of the classifications provided for in subsection (b). [L 1987, c

347, 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 L

1999, c 142, §3; am L 2001, c 157, §32; am L 2006, c 289, §4]