Hawaii 2022 Regular Session

Hawaii House Bill HB1898 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	HOUSE OF REPRESENTATIVES H.B. NO. 1898 THIRTY-FIRST LEGISLATURE, 2022 STATE OF HAWAII A BILL FOR AN ACT relating to MOTOR vehicle valuation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
2	2
3	3	HOUSE OF REPRESENTATIVES H.B. NO. 1898
4	4	THIRTY-FIRST LEGISLATURE, 2022
5	5	STATE OF HAWAII
6	6
7	7	HOUSE OF REPRESENTATIVES
8	8
9	9	H.B. NO.
10	10
11	11	1898
12	12
13	13	THIRTY-FIRST LEGISLATURE, 2022
14	14
15	15
16	16
17	17	STATE OF HAWAII
18	18
19	19
20	20
21	21
22	22
23	23
24	24
25	25
26	26
27	27
28	28
29	29
30	30
31	31	A BILL FOR AN ACT
32	32
33	33
34	34
35	35
36	36
37	37	relating to MOTOR vehicle valuation.
38	38
39	39
40	40
41	41
42	42
43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
44	44
45	45
46	46
47	47	SECTION 1. The legislature finds that the methodology that insurance companies use to assign value to motor vehicles does not accurately reflect the value of electric vehicles. Mileage tends to be a primary factor in valuations, and many insurers do not include any assessment of an electric vehicle's primary battery, known as the traction battery pack, in their vehicle valuations. With electric vehicles, current battery capacity should have much more value than mileage. Because electric vehicles do not have a transmission, motor oil, or an internal combustion engine, including a head gasket or timing belt, wear and tear issues with electric vehicles revolve nearly entirely around battery condition. If an older electric vehicle has a new battery installed, that value should be considered when assessing insurance claims. The legislature further finds that the comparable value of similar vehicles on other islands does not account for the price of shipping and traveling to view and test drive a vehicle on a different island. The purpose of this Act is to update the criteria that insurance companies use to assign value to motor vehicles when examining or processing claims. SECTION 2. Section 431:10C-310, Hawaii Revised Statutes, is amended to read as follows: "§431:10C-310 Total loss motor vehicle claims: replacement. When an insurer elects under section 431:10C-309 to offer the insured a replacement vehicle as defined in section 431:10C-103, the insurer shall comply with the following requirements: (1) The insurer shall consider the following criteria when identifying a replacement vehicle: (A) Availability of the replacement vehicle on the same island as the total loss vehicle; provided that if a replacement vehicle is not available on the same island as the total loss vehicle, the insurer shall include in its offer the costs of shipping the replacement vehicle and the insured's travel for pre-purchase inspection of the replacement vehicle; and (B) If the total loss vehicle is an electric vehicle, the remaining life and capacity of the vehicle's primary battery, known as the traction battery pack, which shall have equal or greater weight than mileage on the vehicle; [(1)] (2) The claim file, which is maintained by the insurer, shall contain a description of the replacement vehicle, including the vehicle identification number and a schedule of options; [(2)] (3) Replacement vehicles of the current model plus the three previous model years shall be purchased through motor vehicle dealers licensed under chapter 437. This requirement may be waived in writing by the insured. The signed waiver shall be maintained in the insurer's claim file; [(3)] (4) If the insurer offers a replacement vehicle to the insured and the insured rejects the offer and elects a cash settlement instead of the replacement vehicle, the insurer need pay only the amount it would have otherwise paid on the replacement vehicle[.], including the costs of shipping the replacement vehicle and the insured's travel for pre-purchase inspection of the replacement vehicle if the replacement vehicle offered is not on the same island as the total loss vehicle. Evidence of the insured's rejection shall be apparent in the file; and [(4)] (5) If the insurer offers a replacement vehicle to the insured and the insured rejects the offer and wants another vehicle substantially similar in value, the insurer need pay only the amount it would have otherwise paid on the replacement vehicle[.], including the costs of shipping the replacement vehicle and the insured's travel for pre-purchase inspection of the replacement vehicle if the replacement vehicle offered is not on the same island as the total loss vehicle. The insurer shall maintain in the claim file the insured's written waiver that the acceptance of another vehicle is of the insured's own free will and choice." SECTION 3. Section 431:10C-311, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) When an insurer elects under section 431:10C-309 to offer the insured a cash settlement for a total loss motor vehicle claim, the following shall apply: (1) The cash settlement shall be based upon the retail value of the motor vehicle as determined from a source or sources which are reflective of the market value of the total loss vehicle[.]; (2) The use of dealer quotations (when the vehicle is available at the quoting dealer's lot) and newspaper advertisements may be used in lieu of the source generally used by the insurer, if the claim file reflects that the vehicle was not quoted in the source generally used by the insurer or the source was not reflective of the market value. Dealer quotations and newspaper advertisements shall not be considered sole sources reflective of market values. When dealer quotations are used, the vehicle identification number shall be contained in the insured's claim file; (3) Estimates from at least three licensed dealers may be used when vehicles are not quoted in the source usually used by the insurer and are not available for replacement. Dealer estimates shall take into consideration the condition of the insured vehicle prior to the loss; [and] (4) Regardless of the source used to determine the market value of the total loss vehicle, the value shall include the following: (A) Availability on the same island as the total loss vehicle; provided that if the source is not for a vehicle on the same island as the total loss vehicle, the insurer shall include the costs of shipping the vehicle and the insured's travel for pre-purchase inspection of the vehicle in its cash settlement offer; and (B) If the total loss vehicle is an electric vehicle, the remaining battery life and capacity of the vehicle's primary battery, known as the traction battery pack, which shall have equal or greater weight than mileage on the vehicle; and [(4)] (5) The documentation of the determination of the total loss vehicle market value shall be maintained in the insurer's claim file." SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 6. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
48	48
49	49	SECTION 1. The legislature finds that the methodology that insurance companies use to assign value to motor vehicles does not accurately reflect the value of electric vehicles. Mileage tends to be a primary factor in valuations, and many insurers do not include any assessment of an electric vehicle's primary battery, known as the traction battery pack, in their vehicle valuations. With electric vehicles, current battery capacity should have much more value than mileage. Because electric vehicles do not have a transmission, motor oil, or an internal combustion engine, including a head gasket or timing belt, wear and tear issues with electric vehicles revolve nearly entirely around battery condition. If an older electric vehicle has a new battery installed, that value should be considered when assessing insurance claims.
50	50
51	51	The legislature further finds that the comparable value of similar vehicles on other islands does not account for the price of shipping and traveling to view and test drive a vehicle on a different island.
52	52
53	53	The purpose of this Act is to update the criteria that insurance companies use to assign value to motor vehicles when examining or processing claims.
54	54
55	55	SECTION 2. Section 431:10C-310, Hawaii Revised Statutes, is amended to read as follows:
56	56
57	57	"§431:10C-310 Total loss motor vehicle claims: replacement. When an insurer elects under section 431:10C-309 to offer the insured a replacement vehicle as defined in section 431:10C-103, the insurer shall comply with the following requirements:
58	58
59	59	(1) The insurer shall consider the following criteria when identifying a replacement vehicle:
60	60
61	61	(A) Availability of the replacement vehicle on the same island as the total loss vehicle; provided that if a replacement vehicle is not available on the same island as the total loss vehicle, the insurer shall include in its offer the costs of shipping the replacement vehicle and the insured's travel for pre-purchase inspection of the replacement vehicle; and
62	62
63	63	(B) If the total loss vehicle is an electric vehicle, the remaining life and capacity of the vehicle's primary battery, known as the traction battery pack, which shall have equal or greater weight than mileage on the vehicle;
64	64
65	65	[(1)] (2) The claim file, which is maintained by the insurer, shall contain a description of the replacement vehicle, including the vehicle identification number and a schedule of options;
66	66
67	67	[(2)] (3) Replacement vehicles of the current model plus the three previous model years shall be purchased through motor vehicle dealers licensed under chapter 437. This requirement may be waived in writing by the insured. The signed waiver shall be maintained in the insurer's claim file;
68	68
69	69	[(3)] (4) If the insurer offers a replacement vehicle to the insured and the insured rejects the offer and elects a cash settlement instead of the replacement vehicle, the insurer need pay only the amount it would have otherwise paid on the replacement vehicle[.], including the costs of shipping the replacement vehicle and the insured's travel for pre-purchase inspection of the replacement vehicle if the replacement vehicle offered is not on the same island as the total loss vehicle. Evidence of the insured's rejection shall be apparent in the file; and
70	70
71	71	[(4)] (5) If the insurer offers a replacement vehicle to the insured and the insured rejects the offer and wants another vehicle substantially similar in value, the insurer need pay only the amount it would have otherwise paid on the replacement vehicle[.], including the costs of shipping the replacement vehicle and the insured's travel for pre-purchase inspection of the replacement vehicle if the replacement vehicle offered is not on the same island as the total loss vehicle. The insurer shall maintain in the claim file the insured's written waiver that the acceptance of another vehicle is of the insured's own free will and choice."
72	72
73	73	SECTION 3. Section 431:10C-311, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
74	74
75	75	"(a) When an insurer elects under section 431:10C-309 to offer the insured a cash settlement for a total loss motor vehicle claim, the following shall apply:
76	76
77	77	(1) The cash settlement shall be based upon the retail value of the motor vehicle as determined from a source or sources which are reflective of the market value of the total loss vehicle[.];
78	78
79	79	(2) The use of dealer quotations (when the vehicle is available at the quoting dealer's lot) and newspaper advertisements may be used in lieu of the source generally used by the insurer, if the claim file reflects that the vehicle was not quoted in the source generally used by the insurer or the source was not reflective of the market value. Dealer quotations and newspaper advertisements shall not be considered sole sources reflective of market values. When dealer quotations are used, the vehicle identification number shall be contained in the insured's claim file;
80	80
81	81	(3) Estimates from at least three licensed dealers may be used when vehicles are not quoted in the source usually used by the insurer and are not available for replacement. Dealer estimates shall take into consideration the condition of the insured vehicle prior to the loss; [and]
82	82
83	83	(4) Regardless of the source used to determine the market value of the total loss vehicle, the value shall include the following:
84	84
85	85	(A) Availability on the same island as the total loss vehicle; provided that if the source is not for a vehicle on the same island as the total loss vehicle, the insurer shall include the costs of shipping the vehicle and the insured's travel for pre-purchase inspection of the vehicle in its cash settlement offer; and
86	86
87	87	(B) If the total loss vehicle is an electric vehicle, the remaining battery life and capacity of the vehicle's primary battery, known as the traction battery pack, which shall have equal or greater weight than mileage on the vehicle; and
88	88
89	89	[(4)] (5) The documentation of the determination of the total loss vehicle market value shall be maintained in the insurer's claim file."
90	90
91	91	SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
92	92
93	93	SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
94	94
95	95	SECTION 6. This Act shall take effect upon its approval.
96	96
97	97
98	98
99	99	INTRODUCED BY: _____________________________
100	100
101	101	INTRODUCED BY:
102	102
103	103	_____________________________
104	104
105	105
106	106
107	107
108	108
109	109	Report Title: Motor Vehicles; Electric Vehicles; Valuation; Motor Vehicle Insurance Description: When identifying a replacement vehicle or cash settlement value, requires an insurer to take into consideration costs of shipping the vehicle and the insured's travel for pre-purchase inspection of the replacement vehicle, if not on the same island, and, if the insured vehicle is an electric vehicle, the remaining battery life and capacity of the vehicle's primary battery, known as the traction battery pack, which shall have equal or greater weight than mileage on the vehicle. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
110	110
111	111
112	112
113	113
114	114
115	115	Report Title:
116	116
117	117	Motor Vehicles; Electric Vehicles; Valuation; Motor Vehicle Insurance
118	118
119	119
120	120
121	121	Description:
122	122
123	123	When identifying a replacement vehicle or cash settlement value, requires an insurer to take into consideration costs of shipping the vehicle and the insured's travel for pre-purchase inspection of the replacement vehicle, if not on the same island, and, if the insured vehicle is an electric vehicle, the remaining battery life and capacity of the vehicle's primary battery, known as the traction battery pack, which shall have equal or greater weight than mileage on the vehicle.
124	124
125	125
126	126
127	127
128	128
129	129
130	130
131	131	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.