Report Title:

Insurance Contract Enforcement; Attorney's Fees; Uniform Arbitration Act; Extension of Time

Description:

Requires award of attorney's fees and costs to beneficiary or policyholder who successfully establishes insurer's liability under insurance policy in judicial proceeding, arbitration, or other proceeding before the insurance commissioner; extends the effective date of the uniform arbitration act from 6/30/04 to 6/30/05. (SD2)

HOUSE OF REPRESENTATIVES

H.B. NO.

2786

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

PROPOSED

S.D. 2


 

A BILL FOR AN ACT

 

RELATING TO ARBITRATION.

 

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

SECTION 1. Part I of this Act requires the awarding of attorney's fees and costs to a beneficiary or policyholder who successfully establishes an insurer's liability under an insurance policy in a judicial proceeding, arbitration, or other proceeding before the insurance commissioner. Part II of this Act extends the effective date of the uniform arbitration act from 6/30/04 to 6/30/05.

PART I

SECTION 2. Section 431:10-242, Hawaii Revised Statutes, is amended to read as follows:

"431:10-242 Policyholder and other [suits] proceedings against insurer. Where an insurer has contested its liability under a policy and is ordered by the courts, an arbitrator, an arbitration panel, or the commissioner 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."

PART II

SECTION 3. Section 658A-3, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) After June 30, [2004,] 2005, this chapter governs an agreement to arbitrate whenever made."

PART III

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval; provided that section 3 shall take effect on June 30, 2004.