REPORT TITLE:
Insurance


DESCRIPTION:
Clarifies that criminal wrongdoers are not entitled to personal
injury protection benefits or to uninsured or underinsured
motorist coverage.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.1269       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR VEHICLE INSURANCE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 431:10C-301, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  A motor vehicle insurance policy shall include:
 
 4      (1)  Liability coverage of not less than $20,000 per person,
 
 5           with an aggregate limit of $40,000 per accident, for
 
 6           all damages arising out of accidental harm sustained as
 
 7           a result of any one accident and arising out of
 
 8           ownership, maintenance, use, loading, or unloading of a
 
 9           motor vehicle;
 
10      (2)  Liability coverage of not less than $10,000 for all
 
11           damages arising out of damage to or destruction of
 
12           property including motor vehicles and including the
 
13           loss of use thereof, but not including property owned
 
14           by, being transported by, or in the charge of the
 
15           insured, as a result of any one accident arising out of
 
16           ownership, maintenance, use, loading, or unloading, of
 
17           the insured vehicle;
 
18      (3)  With respect to any motor vehicle registered or
 
19           principally garaged in this State, liability coverage
 

 
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                                     H.B. NO.1269       
                                                        
                                                        

 
 1           provided therein or supplemental thereto, in limits for
 
 2           bodily injury or death set forth in paragraph (1),
 
 3           under provisions filed with and approved by the
 
 4           commissioner, for the protection of persons insured
 
 5           thereunder who are legally entitled to recover damages
 
 6           from owners or operators of uninsured motor vehicles
 
 7           because of bodily injury, sickness, or disease,
 
 8           including death, [resulting therefrom;] as a result of
 
 9           a motor vehicle accident and rising out of the
 
10           ownership, maintenance, or use of the uninsured motor
 
11           vehicle; provided that the coverage required under this
 
12           paragraph shall not be applicable where any named
 
13           insured in the policy shall reject the coverage in
 
14           writing[;] or where the person insured thereunder was
 
15           engaged in criminal conduct; and
 
16      (4)  Coverage for loss resulting from bodily injury or death
 
17           suffered by any person legally entitled to recover
 
18           damages from owners or operators of underinsured motor
 
19           vehicles[.] as a result of a motor vehicle accident and
 
20           arising out of the operation, maintenance, or use of
 
21           the underinsured motor vehicle; provided that the
 
22           coverage required under this paragraph shall not apply
 
23           where the person otherwise legally entitled to recover
 

 
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                                     H.B. NO.1269       
                                                        
                                                        

 
 1           damages was engaged in criminal conduct.  An insurer
 
 2           may offer the underinsured motorist coverage required
 
 3           by this paragraph in the same manner as uninsured
 
 4           motorist coverage; provided that the offer of both
 
 5           shall:
 
 6           (A)  Be conspicuously displayed so as to be readily
 
 7                noticeable by the insured;
 
 8           (B)  Set forth the premium for the coverage adjacent to
 
 9                the offer in a manner that the premium is clearly
 
10                identifiable with the offer and may be easily
 
11                subtracted from the total premium to determine the
 
12                premium payment due in the event the insured
 
13                elects not to purchase the option; and
 
14           (C)  Provide for written rejection of the coverage by
 
15                requiring the insured to affix the insured's
 
16                signature in a location adjacent to or directly
 
17                below the offer."
 
18      SECTION 2.  Section 431:10C-305, Hawaii Revised Statutes, is
 
19 amended by amending subsection (d) to read as follows:
 
20      "(d)  The following persons are not eligible to receive
 
21 payment of personal injury protection benefits:
 
22      (1)  Occupants of a motor vehicle other than the insured
 
23           motor vehicle;
 

 
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                                     H.B. NO.1269       
                                                        
                                                        

 
 1      (2)  [Operator or user of a motor vehicle engaging in
 
 2           criminal conduct which causes any loss; or] Any person
 
 3           who suffers a loss while engaging in criminal conduct;
 
 4           or
 
 5      (3)  Operator of a motorcycle or motor scooter as defined in
 
 6           section 286-2.
 
 7 [This] With the exception of paragraph (2), this subsection shall
 
 8 not preclude recovery in other capacities under a motor vehicle
 
 9 insurance policy covering a vehicle which the person did not
 
10 occupy at the time of the accident."
 
11      SECTION 3.  Statutory material to be repealed is bracketed.
 
12 New statutory material is underscored.
 
13      SECTION 4.  This Act shall take effect upon its approval.
 
14 
 
15                           INTRODUCED BY:  _______________________