Report Title:

Motor Vehicle Insurance; Subrogation

 

Description:

Allows an insurer providing underinsured motorist coverage to assert a subrogation right against a third-party tortfeasor.

 

THE SENATE

S.B. NO.

939

TWENTY-FIRST LEGISLATURE, 2001

 

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. Chapter 431:10C, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§431:10C- Underinsured motorist coverage; subrogation. An insurer providing underinsured motorist coverage may assert a subrogation right against a third-party tortfeasor, if the insurer extends additional underinsured motorist coverage in an amount equal to the liability policy limits of the third-party tortfeasor. An insurer's failure to extend additional coverage shall preclude the assertion of a subrogation right."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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