REPORT TITLE:
Motor Vehicle Insurance


DESCRIPTION:
Deems motor vehicle insurance coverage to recover damages from
owners or operators of underinsured motor vehicles and personal
injury protection benefits not applicable where the injured
person was engaged in criminal conduct at the time of the injury
warranting damages.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1260
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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                                     S.B. NO.           1260
                                                        
                                                        

 
 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 arising 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 the injured
 
13           person is engaged in criminal conduct or any named
 
14           insured in the policy shall reject the coverage in
 
15           writing; 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 be
 
23           applicable where the injured person is engaged in
 

 
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                                     S.B. NO.           1260
                                                        
                                                        

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

 
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                                     S.B. NO.           1260
                                                        
                                                        

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