REPORT TITLE:
Arbitration; Binding


DESCRIPTION:
Limits collection of any arbitration award to the applicable
liability policy limit; provides that arbitration award is not
binding on underinsured motorist claim.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2213
HOUSE OF REPRESENTATIVES                H.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO BINDING ARBITRATION AWARDS.



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

 1      SECTION 1.  Section 431:10C-213.5, Hawaii Revised Statutes,
 
 2 is amended to read as follows:
 
 3      "[[]431:10C-213.5[]]  Binding arbitration.(a)  A claimant
 
 4 or defendant shall have the option to elect arbitration to
 
 5 resolve a claim in tort that is covered by motor vehicle
 
 6 liability insurance.
 
 7      (b)  A claimant or defendant may submit any dispute relating
 
 8 to a tort claim to binding arbitration by either filing a written
 
 9 request with the clerk of the circuit court in the circuit where
 
10 the accident occurred or by agreement.
 
11      (c)  A claimant or defendant shall have the opportunity to
 
12 decline arbitration.
 
13      (d)  Except as otherwise provided herein, arbitration shall
 
14 be in accordance with and governed by chapter 658.
 
15      (e)  Fees and costs of arbitration shall be borne equally by
 
16 the parties, unless otherwise agreed to by the parties.
 
17      (f)  [Any] Collection of any arbitration award issued under
 
18 this section shall be limited to the applicable liability policy
 
19 limit, unless the insured tortfeasor otherwise agrees.
 

 
Page 2                                                     2213
                                     H.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (g)  The amount of an arbitration award under this section
 
 2 shall not be binding on a subsequent underinsured motorist
 
 3 claim."
 
 4      SECTION 2.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 3.  This Act shall take effect upon its approval.