§431:10C-302  Required optional additional insurance.  (a)  In addition to the motor vehicle insurance coverages described in section 431:10C-301, every insurer issuing a motor vehicle insurance policy shall make available to the insured the following optional insurance under the following conditions.  Every insurer issuing a commercial motor vehicle insurance policy shall make available to the insured the following optional insurance, except for those benefits under paragraphs (4), (5), (9), (10), and (11) under the following conditions:

     (1)  At the option of the insured, provisions covering loss resulting from damage to the insured's motor vehicle with such deductibles, including but not limited to collision and comprehensive deductibles of $50, $100, $250, $500, $1,000, $1,500, and $2,000, at appropriately reduced premium rates, as the commissioner, by rule, shall provide;

     (2)  At the option of the insured, compensation to the insured, the insured's spouse, any dependents, or any occupants of the insured's vehicle for damages not covered by personal injury protection benefits;

     (3)  Additional coverages and benefits with respect to any injury or any other loss from motor vehicle accidents or from operation of a motor vehicle for which the insurer may provide for aggregate limits with respect to such additional coverage so long as the basic liability coverages provided are not less than those required by section 431:10C-301(b)(1) and (2);

     (4)  At the option of the insured, an option in writing for coverage for wage loss benefits for monthly earnings loss for injury arising out of a motor vehicle accident.  Any change in the wage loss benefits coverage selected by an insured shall apply only to benefits arising out of motor vehicle accidents occurring after the date the change becomes effective.  Coverage shall be offered in multiples of $500 a month/$3,000 per accident per person, from $500 a month/$3,000 per accident to $2,000 a month/$12,000 per accident; however, nothing shall prevent an insurer from making available higher limits of coverage;

     (5)  An option in writing for minimum coverage for death benefits for death arising out of a motor vehicle accident in an amount of $25,000, to be paid to the surviving spouse, for the benefit of the spouse and dependent children, or if there are no surviving spouse or dependent children, then to the estate.  Coverage shall also be made available for increased death benefits in increments of $25,000 up to $100,000; however, nothing shall prevent an insurer from making available higher limits of coverage.  At the option of the insured, coverage for funeral expenses of $2,000 shall be made available;

     (6)  Terms, conditions, exclusions, and deductible clauses, coverages, and benefits which:

          (A)  Are consistent with the required provisions of the policy;

          (B)  Limit the variety of coverage available so as to give buyers of insurance reasonable opportunity to compare the cost of insuring with various insurers; and

          (C)  Are approved by the commissioner as fair and equitable;

     (7)  At appropriately reduced premium rates, deductibles applicable only to claims of an insured in the amounts of $100, $300, $500, and $1,000 from all personal injury protection benefits otherwise payable; provided that if two or more insureds to whom the deductible is applicable under the contract of insurance are injured in the same accident, the aggregate amount of the deductible applicable to all of them shall not exceed the specified deductible, which amount where necessary shall be allocated equally among them;

     (8)  Every insurer shall fully disclose the availability of all required and optional coverages and deductibles, including the nature and amounts, at the issuance or delivery of the policy; or, for a policy already issued on January 1, 1998, disclosure shall be made at the first renewal after January 1, 1998.  The insurer shall also disclose at issuance or renewal, as applicable, the effect on premium rates and savings of each option and deductible.  Further offers or disclosures thereafter shall be required to be included with every other renewal or replacement policy.  All elections of coverages, options, and deductibles by a named insured shall be binding upon additional insureds covered under the named insured's policy.  The purpose of this paragraph is to inform insureds or prospective insureds of the coverages under this article;

     (9)  (A)  An insurer may make available, and provide at the option of the named insured, the benefits described in section 431:10C-103.5(a) through managed care providers such as a health maintenance organization or a preferred provider organization.  The option may include conditions and limitations to coverage, including deductibles and coinsurance requirements, as approved by the commissioner.  The commissioner shall approve those conditions and limitations which are substantially comparable to or exceed the coverage provided under section 431:10C-103.6;

          (B)  An insurer may make available, and provide at the option of the named insured, deductible and coinsurance arrangements whereby the recipient of care, treatment, services, products, expenses, or accommodations shares in the payment obligation;

          (C)  No deductible or coinsurance under a policy covered under section 431:10C-302(a)(9)(A) or (B) shall be applied with respect to care, treatment, services, products, or accommodation provided or expenses incurred by an insured during the first twenty-four hours in which emergency treatment has been provided or until the insured patient's emergency medical condition is stabilized, whichever is longer;

          (D)  (i)  The optional coverage prescribed in section 431:10C-302(a)(9)(A) and (B) shall apply only to the named insured, resident spouse, or resident relative; and

             (ii)  "Resident relative" means a person who, at the time of the accident, is related by blood, marriage, or adoption to the named insured or resident spouse and who resides in the named insured's household, even if temporarily living elsewhere, and any ward or foster child who usually resides with the named insured, even if living elsewhere;

          (E)  An agreement made under section 431:10C-302(a)(9) must be a voluntary agreement between the insured and the insurer, and no insurer shall require an insured to agree to those policy provisions as a condition of providing insurance coverage.  Requiring an agreement as a precondition to the provision of insurance shall constitute an unfair insurance practice and shall be subject to the provisions, remedies, and penalties provided in article 13; and

          (F)  An insurer providing the coverages authorized in section 431:10C-302(a)(9)(A) and (B) shall demonstrate in rate filings submitted to the commissioner the savings to the insured to be realized under the plan;

    (10)  An insurer shall make available optional coverage for naturopathic, acupuncture, nonmedical remedial care, and treatment rendered in accordance with the teachings, faith, or belief of any group which relies upon spiritual means through prayer for healing; and

    (11)  An insurer may make available optional coverage for chiropractic treatment in addition to chiropractic treatment provided under section 431:10C-103.6 for not more than the lesser of the following:

          (A)  Thirty additional visits at no more than $75 a visit; or

          (B)  Treatment as defined by the Hawaii Chiropractic Association guidelines in effect on January 25, 1997.

     The commissioner shall adopt rules, including policy limits, terms, and conditions as necessary to implement the requirements of this section.

     (b)  In accordance with the rules adopted by the commissioner, a policy of insurance described in this section shall contain a provision specifying the periods within which claims may be filed and action may be brought against the insurer. [L 1987, c 347, pt of §2; am L 1988, c 306, §2; am L 1992, c 124, §10; am L 1997, c 251, §39; am L 1998, c 275, §18]


Case Notes


  Trial court erred in granting summary judgment in favor of insurer because this section required insurer to offer death benefits coverage for death arising out of all motor vehicle accidents, regardless of whether a motorcycle was involved.  107 H. 227, 112 P.3d 713 (2005).

  Inter-policy stacking of applicable wage loss coverages must be permitted for each covered accident; insurer's "non-duplication of benefits" clause, which purported to limit wage loss benefits of insurer's two policies, was invalid to the extent that it impaired coverage of actual wage loss.  103 H. 181 (App.), 80 P.3d 1002 (2003).

  Circuit court did not err in granting insured summary judgment where, under the plain language of insured's policy and Act 251, L 1997 amendments to this section, no per accident cap on wage loss benefits was incorporated into this section, and amendments by Act 275, L 1998 did not disclose a legislative intent to have adopted, in 1997, a cap on overall wage loss benefits; thus, insured was entitled to wage loss benefits that "shall terminate upon insured's death".  124 H. 426 (App.), 246 P.3d 358 (2010).

  Cited:  77 H. 39, 881 P.2d 526 (1994).