476-8 Insurance provisions. (a) The amount, if any, charged for insurance shall not exceed the premiums chargeable in accordance with rate filings made with the state insurance commissioner under chapter 431 for similar insurance.

The seller or holder, if dual interest insurance on the goods is included in a credit sale contract and a separate charge is made therefor, shall within thirty days after execution of the credit sale contract send or cause to be sent to the buyer a policy or policies or certificate of insurance, written by an insurance company authorized to do business in this State, clearly setting forth the amount of the premium, the kind or kinds of insurance, and the scope of the coverage and all the terms, exceptions, limitations, restrictions, and conditions of the contract or contracts of insurance.

The buyer of goods under a credit sale contract may purchase any required insurance from an insurance producer of the buyer's own selection, and in an insurance company of the buyer's own selection authorized to do business in this State; provided that the seller or holder shall have the right for reasonable cause to disapprove of the insurance company selected by the buyer to underwrite the insurance.

(b) In any credit sale contract for the sale of a motor vehicle where insurance is contracted for as a part of the sale, and the insurance does not include public liability insurance for bodily injury and property damage, the contract shall contain, on the same page as the disclosures therein concerning insurance, a notice substantially similar to the following:

"THIS DOES NOT INCLUDE INSURANCE ON YOUR LIABILITY FOR BODILY INJURY OR PROPERTY DAMAGE. IT DOES NOT MEET THE REQUIREMENTS FOR PROOF OF FINANCIAL RESPONSIBILITY UNDER HAWAII LAW."

(c) If any insurance policy or certificate is canceled, the unearned insurance premium refund received by the holder of the contract shall at the option of the holder either be credited to the final maturing installments of the credit sale contract or be paid to the buyer, except to the extent applied toward payment for similar insurance protecting the interests of the buyer and holder of the contract or either of them. [L 1961, c 102, pt of 1; Supp, 201A-5; am L 1967, c 285, 3; HRS 476-6; am and ren L 1984, c 86, pt of 1; gen ch 1985; am L 2003, c 212, 129; am L 2008, c 19, 2]

 

Cross References

 

Proof of financial responsibility, see chapter 287.

 

Previous Vol11_Ch0476-0490 Next