Hawaii 2024 Regular Session

Hawaii Senate Bill SB1224 Compare Versions

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

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1	1	THE SENATE S.B. NO. 1224 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT relating to insurance. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 1224
4	4	THIRTY-SECOND LEGISLATURE, 2023
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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11	11	1224
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13	13	THIRTY-SECOND LEGISLATURE, 2023
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	relating to insurance.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	PART I SECTION 1. Section 431:10C-802, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) A peer-to-peer car-sharing program shall ensure that during each car-sharing period, the shared car shall be insured under a motor vehicle insurance policy that shall provide: (1) Primary insurance coverage for each shared car available and used through a peer-to-peer car-sharing program in amounts not less than [$750,000 for death, bodily injury, and property damage per accident, and costs of defense outside the limits;] the minimum amounts set forth in section 431:10C-301; provided that the primary insurance coverage under this paragraph shall provide coverage for death, bodily injury, and property damage per accident, and costs of defense outside the limits; (2) Primary insurance coverage for each shared car available and used through a peer-to-peer car-sharing program for personal injury protection coverage that meets the minimum coverage amounts required by section 431:10C-103.5; and (3) The following optional coverages, which any named insured may elect to reject or purchase, that provides primary coverage for each shared car available and used through a peer-to-peer car-sharing program: (A) Uninsured and underinsured motorist coverages as provided in section 431:10C-301, which shall be equal to the primary liability limits specified in this section; provided that uninsured and underinsured motorist coverage offers shall provide for written rejection of the coverages as provided in section 431:10C-301; (B) Uninsured and underinsured motorist coverage stacking options as provided in section 431:10C-301; provided that the offer of the stacking options shall provide for written rejection as provided in section 431:10C-301; (C) An offer of required optional additional insurance coverages as provided in section 431:10C-302; and (D) In the event the only named insured under the motor vehicle insurance policy issued pursuant to this section is the peer-to-peer car-sharing program, the insurer or the peer-to-peer car-sharing program shall: (i) Disclose the coverages in writing to the peer-to-peer car-sharing driver; (ii) Disclose to the peer-to-peer car-sharing driver in writing that all optional coverages available may not have been purchased under sections 431:10C-301 and 431:10C-302; and (iii) Obtain a written acknowledgement from the peer-to-peer car-sharing driver of receipt of the written disclosures required in paragraphs (1) and (2). The standard disclosure forms used in paragraphs (1) and (2), and every modification of such forms intended to be used, shall be filed with the commissioner within fifteen days of providing such disclosure to the peer-to-peer car-sharing driver. The insurer or the peer-to-peer car-sharing program shall also send to the peer-to-peer car-sharing driver every modified disclosure form within fifteen days of the filing of such modified disclosure form and comply with paragraph (3). Such disclosures and acknowledgement may be sent and received by electronic means." SECTION 2. Act 56, Session Laws of Hawaii 2022, is amended by amending section 5 to read as follows: "SECTION 5. This Act shall take effect on January 1, 2023[, and]; provided that sections 431:10C-C, 431:10C-D, 431:10C-E, 431:10C-F, 431:10C-G, as added by section 2 of this Act, shall be repealed on June 30, 2025." PART II SECTION 3. Section 431:10C-802, Hawaii Revised Statutes, is amended to read as follows: "[[]§431:10C-802[]] Insurance coverage during car-sharing period. [(a)] A peer-to-peer car-sharing program shall ensure that during each car-sharing period, the shared car shall be insured under a motor vehicle insurance policy that shall provide[: (1) Primary] insurance coverage for each shared car available and used through a peer-to-peer car-sharing program in amounts not less than the minimum amounts set forth in section 431:10C-301; provided that the primary insurance coverage under this [paragraph] section shall provide coverage for death, bodily injury, and property damage per accident, and costs of defense outside the limits[; (2) Primary insurance coverage for each shared car available and used through a peer-to-peer car-sharing program for personal injury protection coverage that meets the minimum coverage amounts required by section 431:10C-103.5; and (3) The following optional coverages, which any named insured may elect to reject or purchase, that provides primary coverage for each shared car available and used through a peer-to-peer car-sharing program: (A) Uninsured and underinsured motorist coverages as provided in section 431:10C-301, which shall be equal to the primary liability limits specified in this section; provided that uninsured and underinsured motorist coverage offers shall provide for written rejection of the coverages as provided in section 431:10C-301; (B) Uninsured and underinsured motorist coverage stacking options as provided in section 431:10C-301; provided that the offer of the stacking options shall provide for written rejection as provided in section 431:10C-301; (C) An offer of required optional additional insurance coverages as provided in section 431:10C-302; and (D) In the event the only named insured under the motor vehicle insurance policy issued pursuant to this section is the peer-to-peer car-sharing program, the insurer or the peer-to-peer car-sharing program shall: (i) Disclose the coverages in writing to the peer-to-peer car-sharing driver; (ii) Disclose to the peer-to-peer car-sharing driver in writing that all optional coverages available may not have been purchased under sections 431:10C-301 and 431:10C-302; and (iii) Obtain a written acknowledgement from the peer-to-peer car-sharing driver of receipt of the written disclosures required in paragraphs (1) and (2). The standard disclosure forms used in paragraphs (1) and (2), and every modification of such forms intended to be used, shall be filed with the commissioner within fifteen days of providing such disclosure to the peer-to-peer car-sharing driver. The insurer or the peer-to-peer car-sharing program shall also send to the peer-to-peer car-sharing driver every modified disclosure form within fifteen days of the filing of such modified disclosure form and comply with paragraph (3). Such disclosures and acknowledgement may be sent and received by electronic means. (b) If insurance maintained by a shared car owner or shared car driver in accordance with subsection (a) has lapsed, contains an exclusion for peer-to-peer car-sharing, or does not provide the required coverage, insurance maintained by a peer-to-peer car-sharing program shall provide the coverage required by subsection (a) beginning with the first dollar of a claim and shall have the duty to defend the claim. (c) Coverage under a motor vehicle insurance policy maintained by the peer-to-peer car-sharing program shall not be dependent on another motor vehicle insurer first denying a claim]." PART III 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; provided that part II of this Act shall take effect on June 30, 2025. INTRODUCED BY: _____________________________
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49	49	PART I
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51	51	SECTION 1. Section 431:10C-802, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
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53	53	"(a) A peer-to-peer car-sharing program shall ensure that during each car-sharing period, the shared car shall be insured under a motor vehicle insurance policy that shall provide:
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55	55	(1) Primary insurance coverage for each shared car available and used through a peer-to-peer car-sharing program in amounts not less than [$750,000 for death, bodily injury, and property damage per accident, and costs of defense outside the limits;] the minimum amounts set forth in section 431:10C-301; provided that the primary insurance coverage under this paragraph shall provide coverage for death, bodily injury, and property damage per accident, and costs of defense outside the limits;
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57	57	(2) Primary insurance coverage for each shared car available and used through a peer-to-peer car-sharing program for personal injury protection coverage that meets the minimum coverage amounts required by section 431:10C-103.5; and
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59	59	(3) The following optional coverages, which any named insured may elect to reject or purchase, that provides primary coverage for each shared car available and used through a peer-to-peer car-sharing program:
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61	61	(A) Uninsured and underinsured motorist coverages as provided in section 431:10C-301, which shall be equal to the primary liability limits specified in this section; provided that uninsured and underinsured motorist coverage offers shall provide for written rejection of the coverages as provided in section 431:10C-301;
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63	63	(B) Uninsured and underinsured motorist coverage stacking options as provided in section 431:10C-301; provided that the offer of the stacking options shall provide for written rejection as provided in section 431:10C-301;
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65	65	(C) An offer of required optional additional insurance coverages as provided in section 431:10C-302; and
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67	67	(D) In the event the only named insured under the motor vehicle insurance policy issued pursuant to this section is the peer-to-peer car-sharing program, the insurer or the peer-to-peer car-sharing program shall:
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69	69	(i) Disclose the coverages in writing to the peer-to-peer car-sharing driver;
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71	71	(ii) Disclose to the peer-to-peer car-sharing driver in writing that all optional coverages available may not have been purchased under sections 431:10C-301 and 431:10C-302; and
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73	73	(iii) Obtain a written acknowledgement from the peer-to-peer car-sharing driver of receipt of the written disclosures required in paragraphs (1) and (2). The standard disclosure forms used in paragraphs (1) and (2), and every modification of such forms intended to be used, shall be filed with the commissioner within fifteen days of providing such disclosure to the peer-to-peer car-sharing driver. The insurer or the peer-to-peer car-sharing program shall also send to the peer-to-peer car-sharing driver every modified disclosure form within fifteen days of the filing of such modified disclosure form and comply with paragraph (3). Such disclosures and acknowledgement may be sent and received by electronic means."
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75	75	SECTION 2. Act 56, Session Laws of Hawaii 2022, is amended by amending section 5 to read as follows:
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77	77	"SECTION 5. This Act shall take effect on January 1, 2023[, and]; provided that sections 431:10C-C, 431:10C-D, 431:10C-E, 431:10C-F, 431:10C-G, as added by section 2 of this Act, shall be repealed on June 30, 2025."
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79	79	PART II
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81	81	SECTION 3. Section 431:10C-802, Hawaii Revised Statutes, is amended to read as follows:
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83	83	"[[]§431:10C-802[]] Insurance coverage during car-sharing period. [(a)] A peer-to-peer car-sharing program shall ensure that during each car-sharing period, the shared car shall be insured under a motor vehicle insurance policy that shall provide[:
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85	85	(1) Primary] insurance coverage for each shared car available and used through a peer-to-peer car-sharing program in amounts not less than the minimum amounts set forth in section 431:10C-301; provided that the primary insurance coverage under this [paragraph] section shall provide coverage for death, bodily injury, and property damage per accident, and costs of defense outside the limits[;
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87	87	(2) Primary insurance coverage for each shared car available and used through a peer-to-peer car-sharing program for personal injury protection coverage that meets the minimum coverage amounts required by section 431:10C-103.5; and
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89	89	(3) The following optional coverages, which any named insured may elect to reject or purchase, that provides primary coverage for each shared car available and used through a peer-to-peer car-sharing program:
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91	91	(A) Uninsured and underinsured motorist coverages as provided in section 431:10C-301, which shall be equal to the primary liability limits specified in this section; provided that uninsured and underinsured motorist coverage offers shall provide for written rejection of the coverages as provided in section 431:10C-301;
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93	93	(B) Uninsured and underinsured motorist coverage stacking options as provided in section 431:10C-301; provided that the offer of the stacking options shall provide for written rejection as provided in section 431:10C-301;
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95	95	(C) An offer of required optional additional insurance coverages as provided in section 431:10C-302; and
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97	97	(D) In the event the only named insured under the motor vehicle insurance policy issued pursuant to this section is the peer-to-peer car-sharing program, the insurer or the peer-to-peer car-sharing program shall:
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99	99	(i) Disclose the coverages in writing to the peer-to-peer car-sharing driver;
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101	101	(ii) Disclose to the peer-to-peer car-sharing driver in writing that all optional coverages available may not have been purchased under sections 431:10C-301 and 431:10C-302; and
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103	103	(iii) Obtain a written acknowledgement from the peer-to-peer car-sharing driver of receipt of the written disclosures required in paragraphs (1) and (2). The standard disclosure forms used in paragraphs (1) and (2), and every modification of such forms intended to be used, shall be filed with the commissioner within fifteen days of providing such disclosure to the peer-to-peer car-sharing driver. The insurer or the peer-to-peer car-sharing program shall also send to the peer-to-peer car-sharing driver every modified disclosure form within fifteen days of the filing of such modified disclosure form and comply with paragraph (3). Such disclosures and acknowledgement may be sent and received by electronic means.
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105	105	(b) If insurance maintained by a shared car owner or shared car driver in accordance with subsection (a) has lapsed, contains an exclusion for peer-to-peer car-sharing, or does not provide the required coverage, insurance maintained by a peer-to-peer car-sharing program shall provide the coverage required by subsection (a) beginning with the first dollar of a claim and shall have the duty to defend the claim.
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107	107	(c) Coverage under a motor vehicle insurance policy maintained by the peer-to-peer car-sharing program shall not be dependent on another motor vehicle insurer first denying a claim]."
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109	109	PART III
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111	111	SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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113	113	SECTION 5. This Act shall take effect upon its approval; provided that part II of this Act shall take effect on June 30, 2025.
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117	117	INTRODUCED BY: _____________________________
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119	119	INTRODUCED BY:
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127	127	Report Title: Insurance; Peer-to-Peer Car-Sharing; Liability Description: Amends the required coverage for shared cars that are made available through a peer-to-peer car-sharing program. On 6/30/2025, repeals the allowable exclusions, recordkeeping requirements, right of recovery, insurable interest, and required disclosures and notices under the peer-to-peer car-sharing insurance law. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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133	133	Report Title:
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135	135	Insurance; Peer-to-Peer Car-Sharing; Liability
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139	139	Description:
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141	141	Amends the required coverage for shared cars that are made available through a peer-to-peer car-sharing program. On 6/30/2025, repeals the allowable exclusions, recordkeeping requirements, right of recovery, insurable interest, and required disclosures and notices under the peer-to-peer car-sharing insurance law.
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149	149	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.