| 47 | | - | SECTION 1. The legislature finds that the State faces rising inflation due to the coronavirus disease 2019 (COVID-19) pandemic. The legislature further finds that motor vehicle insurance minimum coverage requirements have remained unamended since the enactment of Act 275, Session Laws of Hawaii 1998, nearly twenty-five years ago. Accordingly, the required liability insurance minimum coverage requirements currently in effect are insufficient. The legislature also finds that with rising inflation, the failure to increase these amounts will operate as a tax on tort victims throughout the State. Therefore, the legislature concludes that it must take action to mitigate the impacts on Hawaii residents. Accordingly, the purpose of this Act is to increase the minimum amounts of liability insurance coverage required under motor vehicle insurance policies. SECTION 2. Section 431:10C-301, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) A motor vehicle insurance policy shall include: (1) Liability coverage of: (A) Until December 31, 2026, not less than [$20,000] $ per person, with an aggregate limit of [$40,000] $ per accident[,]; and (B) Beginning January 1, 2027, not less than $ per person, with an aggregate limit of $ per accident, for all damages arising out of accidental harm sustained as a result of any one accident and arising out of ownership, maintenance, use, loading, or unloading of a motor vehicle; (2) Liability coverage of: (A) Until December 31, 2026, not less than [$10,000] $ ; and (B) Beginning January 1, 2027, not less than $ , for all damages arising out of damage to or destruction of property including motor vehicles and including the loss of use thereof, but not including property owned by, being transported by, or in the charge of the insured, as a result of any one accident arising out of ownership, maintenance, use, loading, or unloading, of the insured vehicle; (3) With respect to any motor vehicle registered or principally garaged in this State, liability coverage provided therein or supplemental thereto, in limits for bodily injury or death set forth in paragraph (1), under provisions filed with and approved by the commissioner, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom; provided that the coverage required under this paragraph shall not be applicable where any named insured in the policy shall reject the coverage in writing; and (4) Coverage for loss resulting from bodily injury or death suffered by any person legally entitled to recover damages from owners or operators of underinsured motor vehicles. An insurer may offer the underinsured motorist coverage required by this paragraph in the same manner as uninsured motorist coverage; provided that the offer of both shall: (A) Be conspicuously displayed so as to be readily noticeable by the insured; (B) Set forth the premium for the coverage adjacent to the offer in a manner that the premium is clearly identifiable with the offer and may be easily subtracted from the total premium to determine the premium payment due in the event the insured elects not to purchase the option; and (C) Provide for written rejection of the coverage by requiring the insured to affix the insured's signature in a location adjacent to or directly below the offer." SECTION 3. (a) The insurance commissioner shall issue a memorandum to solicit rate filings from motor vehicle insurers to reflect amendments to section 431:10C-301(b)(1)(A) and (2)(A), Hawaii Revised Statutes, no later than July 1, 2023. Rate filings shall be due no later than December 1, 2023, and the relevant rate changes shall be effective for new and renewal policies on or after July 1, 2024. (b) The insurance commissioner shall issue a memorandum to solicit rate filings from motor vehicle insurers to reflect amendments to section 431:10C-301(b)(1)(B) and (2)(B), Hawaii Revised Statutes, no later than January 1, 2026. Rate filings shall be due no later than July 1, 2026, and the relevant rate changes shall be effective for new and renewal policies on or after January 1, 2027. SECTION 4. This Act shall apply to motor vehicle insurance policies entered into, amended, or renewed on or after the effective date of this Act. SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 6. This Act shall take effect on June 30, 3000. |
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| 47 | + | SECTION 1. The legislature finds that the State faces rising inflation due to the coronavirus disease 2019 (COVID-19) pandemic. The legislature further finds that motor vehicle insurance minimum coverage requirements have remained unamended since the enactment of Act 275, Session Laws of Hawaii 1998, nearly twenty-five years ago. Accordingly, the required liability insurance minimum coverage requirements currently in effect are insufficient. The legislature further finds that with rising inflation, the failure to increase these amounts will operate as a tax on tort victims throughout our State. Therefore, the legislature finds that it must take action to mitigate the impacts on Hawaii residents. Accordingly, the purpose of this Act is to increase the minimum amounts of liability insurance coverage required for motor vehicle insurance policies. SECTION 2. Section 431:10C-301, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) A motor vehicle insurance policy shall include: (1) Liability coverage of: (A) Until December 31, 2026, not less than [$20,000] $50,000 per person, with an aggregate limit of [$40,000] $100,000 per accident[,]; and (B) Beginning January 1, 2027, not less than $100,000 per person, with an aggregate limit of $200,000 per accident, for all damages arising out of accidental harm sustained as a result of any one accident and arising out of ownership, maintenance, use, loading, or unloading of a motor vehicle; (2) Liability coverage of: (A) Until December 31, 2026, not less than [$10,000] $20,000; and (B) Beginning January 1, 2027, not less than $40,000, for all damages arising out of damage to or destruction of property including motor vehicles and including the loss of use thereof, but not including property owned by, being transported by, or in the charge of the insured, as a result of any one accident arising out of ownership, maintenance, use, loading, or unloading, of the insured vehicle; (3) With respect to any motor vehicle registered or principally garaged in this State, liability coverage provided therein or supplemental thereto, in limits for bodily injury or death set forth in paragraph (1), under provisions filed with and approved by the commissioner, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom; provided that the coverage required under this paragraph shall not be applicable where any named insured in the policy shall reject the coverage in writing; and (4) Coverage for loss resulting from bodily injury or death suffered by any person legally entitled to recover damages from owners or operators of underinsured motor vehicles. An insurer may offer the underinsured motorist coverage required by this paragraph in the same manner as uninsured motorist coverage; provided that the offer of both shall: (A) Be conspicuously displayed so as to be readily noticeable by the insured; (B) Set forth the premium for the coverage adjacent to the offer in a manner that the premium is clearly identifiable with the offer and may be easily subtracted from the total premium to determine the premium payment due in the event the insured elects not to purchase the option; and (C) Provide for written rejection of the coverage by requiring the insured to affix the insured's signature in a location adjacent to or directly below the offer." SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ |
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