REPORT TITLE:
Motor Vehicle Insurance


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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           769
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.  The Hawaii Revised Statutes is amended by adding
 
 2 a new chapter to be appropriately designated and to read as
 
 3 follows:
 
 4                           "CHAPTER     
 
 5         AUTOMOBILE INSURANCE PERSONAL RESPONSIBILITY ACT
 
 6      §   -1  Short title.  This chapter shall be known and may be
 
 7 cited as the "Automobile Insurance Personal Responsibility Act."
 
 8      §   -2  Findings and purpose.  The legislature finds that,
 
 9 after an accident, an insured Hawaii motorist has little
 
10 realistic hope of recovering damages from an uninsured
 
11 tortfeasor.  On the other hand, an illegally uninsured injured
 
12 person may make a claim against a financially responsible
 
13 tortfeasor with a reasonable degree of certainty that the
 
14 uninsured person will recover not only out-of-pocket economic
 
15 loss, but noneconomic intangible loss as well, such as pain and
 
16 suffering, once the tort threshold is reached.  Thus, the tort
 
17 liability insurance system, in effect, gives these uninsured
 
18 persons a "free ride", entitling them to take advantage of a
 
19 compensation structure to which they do not contribute.
 

 
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 1 Responsible motorists, by contrast, must purchase increasingly
 
 2 expensive uninsured motor vehicle insurance in order to be fully
 
 3 protected for accidents caused by uninsured drivers.  In
 
 4 addition, other irresponsible parties, including those who are
 
 5 found to be driving under the influence of intoxicating liquor or
 
 6 drugs, put a far greater burden on responsible motorists by way
 
 7 of increased insurance costs and injuries than the irresponsible
 
 8 parties can pay for in insurance premiums.  The purposes of this
 
 9 chapter are to remedy the unfairness of this system, to avoid
 
10 ineffective and cumbersome proposals to increase compliance with
 
11 compulsory insurance requirements, and to reduce insurance costs.
 
12      §   -3  Definitions.  As used in this chapter:
 
13      "Driving under the influence of intoxicating liquor or
 
14 drugs" means a conviction or entering of a guilty plea or plea of
 
15 nolo contendere under section 291-3.1, 291-3.2, 291-3.3, 291-3.4,
 
16 291-4, 291-4.3, 291-4.4, or 291-7.
 
17      "Economic loss" means pecuniary loss and monetary expense
 
18 incurred by or on behalf of an injured person in connection with
 
19 operation or use of a motor vehicle.
 
20      "Felony" has the same meaning as in section 701-107.
 
21      "Noneconomic loss" means any loss other than economic loss,
 
22 including pain, suffering, loss of enjoyment of life, loss of
 
23 future economic capacity, mental anguish, emotional distress, and
 

 
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                                     S.B. NO.           769
                                                        
                                                        


 1 all other noneconomic damages.
 
 2      §   -4  Limitations on recovery of noneconomic loss.  Except
 
 3 as provided in section    -5, in any legal action to recover
 
 4 damages arising out of the operation or use of a motor vehicle,
 
 5 an injured person shall not recover for noneconomic loss if any
 
 6 of the following applies:
 
 7      (1)  The injured person was at the time of the accident
 
 8           driving under the influence of intoxicating liquor or
 
 9           drugs;
 
10      (2)  The injured person was an owner of an uninsured motor
 
11           vehicle involved in the accident and was unable to
 
12           produce proof of financial responsibility under section
 
13           287-5;
 
14      (3)  The injured person was the operator of the motor
 
15           vehicle involved in the accident and was operating the
 
16           motor vehicle in violation of section 431:10C-104;
 
17      (4)  The injured person was the operator of the motor
 
18           vehicle involved in the accident and was operating the
 
19           motor vehicle in violation of section 286-132; or
 
20      (5)  The injured person was the operator of a motor vehicle,
 
21           a passenger in a motor vehicle or a pedestrian and the
 
22           injured person's injuries were caused during the course
 
23           of the injured person's commission of a felony, or
 

 
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                                     S.B. NO.           769
                                                        
                                                        


 1           immediate flight therefrom, and the injured person was
 
 2           either convicted of that felony, or entered a plea of
 
 3           guilty or nolo contendere, and has waived or exhausted
 
 4           all rights to an appeal.
 
 5      §   -5 Exception to limitations on recovery or noneconomic
 
 6 loss.  An injured person shall not be precluded from recovering
 
 7 for noneconomic loss to the extent provided for under section
 
 8 431:10C-306 in the event that the accident was caused by the
 
 9 intentional act of another motorist or if the injured person is a
 
10 person described in section    -4(2), (3), or (4) and:
 
11      (1)  Was injured by a motorist who at the time of the
 
12           accident was driving under the influence of
 
13           intoxicating liquor or drugs; or
 
14      (2)  Was injured by a motorist, passenger in a motor
 
15           vehicle, or a pedestrian, who at the time of the
 
16           accident was committing a felony, or was in immediate
 
17           flight therefrom, and was convicted of that felony,
 
18           entered a plea of guilty or nolo contendere, and has
 
19           waived or exhausted all rights to an appeal.
 
20      §   -6 Limitations on insurance coverage.  Except as
 
21 provided in section    -5, an insurer shall not be liable, either
 
22 directly or indirectly, under any insurance policy that provides
 
23 liability coverage, uninsured motorist coverage, or underinsured
 

 
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                                     S.B. NO.           769
                                                        
                                                        


 1 motorist coverage to indemnify the noneconomic loss of any person
 
 2 subject to the limitations described in section    -4.
 
 3      §   -7 Procedure for pending claims.  Notwithstanding any
 
 4 other provision of law to the contrary, in the event that an
 
 5 injured person has been charged with the violation of a felony or
 
 6 of sections 286-132, 287-5, 291-3.1, 291-3.2, 291-3.3, 291-3.4,
 
 7 291-4, 291-4.3, 291-4.4, 291-7, or 431:10C-104, in connection
 
 8 with the accident, but a final decision has not been made, an
 
 9 insurer to which a claim for damages has been presented under a
 
10 policy which provides liability, uninsured, or underinsured
 
11 motorist coverage may advise the injured person that settlement
 
12 of the claim will await final decision of the case.  The injured
 
13 person claiming damages shall present documentation of the final
 
14 outcome of the charges.  Upon receipt of the documentation, the
 
15 insurer may take reasonable steps to verify the validity of the
 
16 evidence, including but not limited to obtaining the verification
 
17 of insurance from other insurers."
 
18      SECTION 2.  This Act shall take effect upon its approval.
 
19 
 
20                           INTRODUCED BY:  _______________________