Requires award of attorney's fees and costs to beneficiary or policyholder who successfully establishes insurer's liability under insurance policy in arbitration.

A BILL FOR AN ACT

SECTION 1. 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 an arbitration proceeding.

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, or an arbitration panel 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."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.