Report Title:

Motor Vehicle Insurance

Description:

Precludes uninsured motorists and DUI drivers from recovering noneconomic losses in a motor vehicle accident.

HOUSE OF REPRESENTATIVES

H.B. NO.

459

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO MOTOR VEHICLE INSURANCE.

 

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

SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new part to article 10C to be appropriately designated and to read as follows:

"PART    . AUTOMOBILE INSURANCE PERSONAL

RESPONSIBILITY ACT

§431:10C-A Short title. This part shall be known and may be cited as the "Automobile Insurance Personal Responsibility Act".

§431:10C-B Findings and purpose. The legislature finds that, after an accident, an insured Hawaii motorist has little realistic hope of recovering damages from an uninsured tortfeasor. On the other hand, an illegally uninsured injured person may make a claim against a financially responsible tortfeasor with a reasonable degree of certainty that the uninsured person will recover not only out-of-pocket economic loss, but noneconomic intangible loss as well, such as pain and suffering, once the tort threshold is reached. Thus, the tort liability insurance system, in effect, gives these uninsured persons a "free ride", entitling them to take advantage of a compensation structure to which they do not contribute. Responsible motorists, by contrast, must purchase increasingly expensive uninsured motor vehicle insurance in order to be fully protected for accidents caused by uninsured drivers. In addition, other irresponsible parties, including those who are found to be driving under the influence of intoxicating liquor or drugs, put a far greater burden on responsible motorists by way of increased insurance costs and injuries than the irresponsible parties can pay for in insurance premiums. The purpose of this part is to remedy the unfairness of this system, avoid ineffective and cumbersome proposals to increase compliance with compulsory insurance requirements, and reduce insurance costs by precluding uninsured motorists and drivers under the influence of intoxicating liquor or drugs from recovering noneconomic losses in a motor vehicle accident.

§431:10C-C Definitions. As used in this chapter:

"Driving under the influence of intoxicating liquor or drugs" means a conviction or entering of a guilty plea or plea of nolo contendere under section 291-3.1, 291-3.2, 291-3.3, 291E-61, or 291E-64.

"Economic loss" means pecuniary loss and monetary expense incurred by or on behalf of an injured person in connection with operation or use of a motor vehicle.

"Felony" shall be as defined in section 701-107.

"Noneconomic loss" means any loss other than economic loss, including pain, suffering, loss of enjoyment of life, loss of future economic capacity, mental anguish, emotional distress, and all other noneconomic damages.

§431:10C-D Limitations on recovery of noneconomic loss. Except as provided in section 431:10C-E, in any legal action to recover damages arising out of the operation or use of a motor vehicle, an injured person shall not recover for noneconomic loss if the injured person was:

(1) At the time of the accident driving under the influence of intoxicating liquor or drugs;

(2) An owner of an uninsured motor vehicle involved in the accident and was unable to produce proof of financial responsibility under section 287-5;

(3) The operator of the motor vehicle involved in the accident and was operating the motor vehicle in violation of section 431:10C-104;

(4) The operator of the motor vehicle involved in the accident and was operating the motor vehicle in violation of section 286-132 or 291E-62; or

(5) The operator of a motor vehicle, a passenger in a motor vehicle, or a pedestrian and the injured person's injuries were caused during the course of the injured person's commission of a felony, or immediate flight therefrom, and the injured person was either convicted of that felony, or entered a plea of guilty or nolo contendere, and has waived or exhausted all rights to an appeal.

§431:10C-E Exception to limitations on recovery or noneconomic loss. An injured person shall not be precluded from recovering for noneconomic loss to the extent provided for under section 431:10C-306 in the event that the accident was caused by the intentional act of another motorist or if the injured person is a person described in section 431:10C-D(2), (3), or (4) and:

(1) Was injured by a motorist who at the time of the accident was driving under the influence of intoxicating liquor or drugs; or

(2) Was injured by a motorist, passenger in a motor vehicle, or a pedestrian, who at the time of the accident was committing a felony, or was in immediate flight therefrom, and was convicted of that felony, entered a plea of guilty or nolo contendere, and has waived or exhausted all rights to an appeal.

§431:10C-F Limitations on insurance coverage. Except as provided in section 431:10C-E, an insurer shall not be liable, either directly or indirectly, under any insurance policy that provides liability coverage, uninsured motorist coverage, or underinsured motorist coverage to indemnify the noneconomic loss of any person subject to the limitations described in section 431:10C-D.

§431:10C-G Procedure for pending claims. Notwithstanding any other provision of law to the contrary, in the event that an injured person has been charged with the violation of sections 286-132, 287-5, 291-3.1, 291-3.2, 291-3.3, 291E-61, 291E-62, 291E-64, or 431:10C-104, or any felony, in connection with the accident, but a final decision has not been made, an insurer to which a claim for damages has been presented under a policy which provides liability, uninsured, or underinsured motorist coverage may advise the injured person that settlement of the claim will await final decision of the case. The injured person claiming damages shall present documentation of the final outcome of the charges. Upon receipt of the documentation, the insurer may take reasonable steps to verify the validity of the evidence, including but not limited to obtaining the verification of insurance from other insurers."

SECTION 2. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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