Report Title:

Arbitration; insurance disputes; attorney's fees and costs

Description:

Provides that a policyholder, beneficiary, or designee shall be awarded reasonable attorney's fees and costs of arbitration in an arbitrated insurance dispute when an arbitrator or arbitration panel orders an insurer to pay benefits to the policyholder. (HB2786 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2786

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO ARBITRATION.

 

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

SECTION 1. Section 431:10-242, Hawaii Revised Statutes, is amended to read as follows:

"431:10-242 Policyholder and other suits against insurer. (a) Where an insurer has contested its liability under a policy and is ordered by the courts to pay benefits under the policy, the policyholder, the beneficiary under [a] the policy, or the person who has acquired the rights of the policyholder or beneficiary under the policy shall be awarded reasonable attorney's fees and the costs of suit, in addition to the benefits under the policy.

(b) Where an insurer has contested coverage under a policy and is ordered by an arbitrator or arbitration panel to pay benefits under the policy, the policyholder, the beneficiary under the policy, or the person who has acquired the rights of the policyholder or beneficiary under the policy shall be awarded reasonable attorney's fees and the costs of arbitration, in addition to the benefits under the policy."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect July 1, 2345.