reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10B-110 Issuance of policies.

§431:10B-110 Issuance of policies.
(a) All policies of credit life insurance and credit disability insurance shall be delivered or issued for delivery in this State only by an insurer authorized to do an insurance business in this State, and shall be issued only through holders of certificates, licenses or authorizations issued by the commissioner.
(b) The enrolling of debtors under a group creditor policy and the issuance of certificates of insurance pursuant thereto or the issuing of individual policies by a creditor shall not be considered a sale or solicitation of insurance or the transaction of an insurance business. A limited license issued under section 431:9A-107.5 shall be required for such acts. A producer's license shall not be required.
(c) A group creditor policy issued by an admitted insurer to a creditor on which the entire premium is paid by the creditor wholly from the creditor's funds shall be considered a seller-purchaser relationship and not a principal-agent relationship. Notwithstanding subsection (a), a license shall not be required for the issuance of certificates of insurance under group creditor policy that is subject to this subsection. [L 1987, c 347, pt of §2; am L 2001, c 216, §17; am L 2002, c 155, §68]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10B-111 Claims.

§431:10B-111 Claims.
(a) All claims shall be promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate claim files. All claims shall be settled as soon as possible and in accordance with the terms of the insurance contract.
(b) All claims shall be paid either by draft drawn upon the insurer or by check of the insurer to the order of the claimant to whom payment of the claim is due pursuant to the policy provisions, or upon direction of the claimant to one specified.
(c) No plan or arrangement shall be used whereby any person, firm or corporation other than the insurer or its designated claim representative shall be authorized to settle or adjust claims. The creditor shall not be designated as claims representative for the insurer in adjusting claims; provided that a group policyholder may, by arrangement with the group insurer, draw drafts or checks in payment of claims due to the group policyholder subject to audit and review by the insurer. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10B-112 Existing insurance and choice of insurer.

§431:10B-112 Existing insurance and choice of insurer.
When credit life insurance or credit disability insurance is required as additional security for any indebtedness, the creditor shall give the debtor written notice of the debtor's option to furnish the required insurance through existing policies of insurance owned or controlled by the debtor or of procuring and furnishing the required coverage through any insurer authorized to transact an insurance business in this State. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10B-113 Enforcement.

§431:10B-113 Enforcement.
(a) The commissioner may, after notice and hearing as provided in chapter 91, issue such rules and regulations as the commissioner deems appropriate for the supervision of this article.
(b) Whenever the commissioner finds that there has been a violation of this article or of any rules or regulations issued pursuant thereto, and after written notice thereof and hearing given to the insurer or other person authorized or licensed by the commissioner, the commissioner shall set forth the details of the commissioner's findings together with an order for compliance by a specified date. The order shall be binding on the insurer and any other person authorized or licensed by the commissioner on the date specified, unless sooner withdrawn by the commissioner or a stay of the order has been ordered by a court of competent jurisdiction.
(c) In all proceedings before the commissioner, the commissioner shall have the same powers with respect to administering oaths, compelling the attendance of witnesses and the production of documentary evidence, and examining witnesses as are granted the commissioner in section 431:2-204.
(d) In cases of disobedience by any person of any order or subpoena issued by the commissioner, or the refusal of any witness to testify to any matter regarding which the witness may be questioned lawfully, the commissioner may apply to any court for an order to compel testimony or production of documents. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10B-114 Penalties.

§431:10B-114 Penalties.
In addition to any other penalty provided by law, any person, firm or corporation which violates an order of the commissioner after it has become final, and while the order is in effect, shall, upon proof thereof to the satisfaction of the court, forfeit and pay to this State a sum not to exceed $250 for each violation which may be recovered in a civil action; except that if the violation is found to be wilful, the amount of the penalty shall be a sum not to exceed $1,000. The commissioner, in the commissioner's discretion, may revoke or suspend the license or certificate of authority of the person, firm or corporation guilty of the violation. An order for suspension or revocation shall be upon notice and hearing, and shall be subject to judicial review. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-101 Short title.

Cross References
Applicability of article to captive insurers, see §431:19-115.5.
Law Journals and Reviews
Tort and Insurance "Reform" in a Common Law Court. 14 UH L. Rev. 55 (1992).
Case Notes
Rent-a-car company's rental agreement provision, which attempted to shift primary responsibility for providing minimum insurance coverage to the renter's personal insurance policy, violated the public policy enumerated in this chapter. 88 H. 274, 965 P.2d 1274 (1998).
The owner of a vehicle has the primary obligation to provide minimum coverage for the owned vehicle and this obligation may not be avoided through a unilateral contract with a permissive user of the vehicle. 88 H. 274, 965 P.2d 1274 (1998).
When a defendant is charged with a violation of this article, §805-13 is the proper procedural statute for the district court, enforcement officers, and the prosecutor's office to follow. 86 H. 331 (App.), 949 P.2d 171 (1997).
As §1-1 does not establish the supremacy of the 1840 Constitution over the current state constitution, or somehow render the documents concurrent, whether chapter 431 violated the 1840 Constitution was immaterial for purposes of defendant's conviction. 90 H. 130 (App.), 976 P.2d 444 (1999).
PART I. GENERAL PROVISIONS
§431:10C-101 Short title.
This article shall be known and may be cited as the Hawaii motor vehicle insurance law. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-102 Purpose.

§431:10C-102 Purpose.
(a) The purpose of this article is to:
(1) Create a system of reparations for accidental harm and loss arising from motor vehicle accidents;
(2) Compensate these damages without regard to fault; and
(3) Limit tort liability for these accidents.
(b) To effectuate this system of motor vehicle insurance and to encourage participation by all drivers in the motor vehicle insurance system:
(1) Those uninsured drivers who try to obtain the privilege of driving a motor vehicle without the concomitant responsibility of an ability to compensate adequately those who are injured as a result of a motor vehicle accident are to be dealt with more severely in the criminal or civil areas than those who obtain the legally required motor vehicle insurance coverage;
(2) Those persons truly economically unable to afford insurance are provided for under the public assistance provisions of this article. [L 1987, c 347, pt of §2; am L 1997, c 251, §12]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-103.5 Personal injury protection benefits; defined; limits.

§431:10C-103.5 Personal injury protection benefits; defined; limits.
(a) Personal injury protection benefits, with respect to any accidental harm, means all appropriate and reasonable treatment and expenses necessarily incurred as a result of the accidental harm and which are substantially comparable to the requirements for prepaid health care plans, including medical, hospital, surgical, professional, nursing, advanced practice nursing licensed pursuant to chapter 457, dental, optometric, naturopathic medicine, chiropractic, ambulance, prosthetic services, medical equipment and supplies, products and accommodations furnished, x-ray, psychiatric, physical therapy pursuant to prescription by a medical doctor, occupational therapy, rehabilitation, and therapeutic massage by a licensed massage therapist when prescribed by a medical doctor.
(b) Personal injury protection benefits, when applied to a motor vehicle insurance policy issued at no cost under section 431:10C-410(3)(A), shall not include benefits under subsection (a) for any person receiving public assistance benefits.
(c) Personal injury protection benefits shall be subject to an aggregate limit of $10,000 per person for services provided under this section. An insurer may offer additional coverage in excess of the $10,000 aggregate limit for services provided under this section, or as provided by rule of the commissioner. [L 1997, c 251, pt of §2; am L 1998, c 275, §5; am L 1999, c 222, §4; am L 2000, c 65, §1; am L 2004, c 56, §1; am L Sp 2009, c 22, §11(2); am L 2015, c 35, §46]
Case Notes
Fee schedule was intended to apply to medical services rendered as a result of motor vehicle accidents and paid by a no-fault insurer. 73 F. Supp. 2d 1189 (1999).
Disputed issue of material fact existed as to whether or not the information requested by defendant insurer from plaintiff personal injury protection company was necessary and reasonable; defendant insurer was entitled to do some investigation to determine whether claimed benefits are appropriate and reasonable. 732 F. Supp. 2d 1107 (2010).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-103.6 Personal injury protection benefits tied to prepaid health care plan for description of coverage only.

§431:10C-103.6 Personal injury protection benefits tied to prepaid health care plan for description of coverage only.
(a) The benefits provided under section 431:10C-103.5 shall be substantially comparable to the requirements for prepaid health care plans, as provided in chapter 393 and rules of the department of labor and industrial relations, pertaining to the Prepaid Health Care Act. The reference to the Prepaid Health Care Act is only for purposes of describing the coverages and exclusions, without regard to any specific insurer or plan, and shall not be construed to transfer coverage to the prepaid health care plans. The precise charges and utilization rates shall be as contained in the workers' compensation schedules as provided under section 431:10C-308.5, unless modified by the commissioner by rule under chapter 91.
(b) Chiropractic treatments shall be allowed for not more than the lesser of the following:
(1) Thirty visits at no more than $75 a visit, plus no more than five x-rays at no more than $50 each; or
(2) Treatment as defined by the Hawaii State Chiropractic Association guidelines in effect on January 25, 1997.
(c) Acupuncture treatments shall be allowed for no more than thirty visits. The charges for acupuncture treatments under this section shall be tied to the charges, and any subsequent increases in charges, permissible under the workers' compensation supplemental medical fee schedule.
(d) Naturopathic treatments shall be allowed for no more than thirty visits at no more than $75 a visit.
(e) The combined total of naturopathic, chiropractic, and acupuncture treatments may not exceed thirty visits.
(f) The benefits under section 431:10C-103.5 may be with copayment, and shall be subject to and apply the utilization requirements applicable under prepaid health care plans, under chapter 393. [L 1997, c 251, pt of §2; am L 1998, c 275, §6; am L 2004, c 56, §2; am L 2017, c 124, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-105 Self-insurance.

§431:10C-105 Self-insurance.
(a) The motor vehicle insurance required by section 431:10C-104 may be satisfied by any owner of a motor vehicle if:
(1) The owner meets the requirements of part VI of this article; and
(2) The commissioner is satisfied that in case of injury, death, or property damage, any claimant would have the same rights against the owner as the claimant would have had if a motor vehicle insurance policy had been applicable to the vehicle.
(b) A person desiring to qualify as a self-insurer shall apply to the commissioner on a form or in a format approved by the commissioner pursuant to rules. [L 1987, c 347, pt of §2; am L 1997, c 251, §16; am L 2000, c 24, §5; am L 2004, c 122, §39]
Cross References
Self-insurer requirements, see § §431:10C-601 to 431:10C-608.
Case Notes
Use restriction in rental agreement purporting to limit self-insurer rent-a-car company's liability in the event of an accident in which renter was intoxicated was in violation of public policy. 85 H. 243, 942 P.2d 507 (1997).
Where there was no underlying insurance contract from which the duty of good faith settlement practices could arise, injured third-party claimant had no right to sue self-insured car rental company for bad faith. 105 H. 112, 94 P.3d 667 (2004).
For purposes of §431:10C-104(a), self-insurance under this section should be considered a defense, which the prosecution need not disprove unless some evidence to support the defense has been introduced. 90 H. 130 (App.), 976 P.2d 444 (1999).
Proof of self-insurance under this section is a "defense" within the meaning of §701-115. 90 H. 130 (App.), 976 P.2d 444 (1999).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-106 Specialty insurers not prohibited.

§431:10C-106 Specialty insurers not prohibited.
Nothing in this article shall prevent an insurer from offering motor vehicle insurance policies for only U-drive motor vehicles. [L 1987, c 347, pt of §2; am L 1989, c 208, §2; am L 1997, c 251, §17]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-107 Verification of insurance: motor vehicles.

§431:10C-107 Verification of insurance: motor vehicles.
(a) Every insurer shall issue to its insureds a paper or electronic motor vehicle insurance identification card for each motor vehicle for which the basic motor vehicle insurance coverage is written. The electronic motor vehicle insurance identification card may be accessed directly through the licensed insurer's website, application, or database. The identification card shall contain the following:
(1) Name of make and factory or serial number of the motor vehicle; provided that insurers of five or more motor vehicles which are under common registered ownership and used in the regular course of business shall not be required to indicate the name of make and the factory or serial number of each motor vehicle;
(2) Policy number;
(3) Names of the insured and the insurer; and
(4) Effective dates of coverage including the expiration date.
(b) The identification card shall be in the insured motor vehicle or accessible on a mobile electronic device, as defined in section 291C-137, at all times and shall be exhibited to a law enforcement officer upon demand.
(c) The identification card shall be resistant to forgery by whatever means appropriate. The commissioner shall approve the construction, form, and design of the identification card to ensure that the card is forgery resistant.
(d) The commissioner shall issue a certificate of self-insurance periodically, as necessary, for use in each motor vehicle insured under section 431:10C-105.
(e) The identification card issued by an insurer shall not be issued for a period exceeding the period for which premiums have been paid or earned; provided that this subsection shall apply only to the first application of a person for a motor vehicle insurance policy and shall not apply to applications for commercial and fleet vehicles. [L 1987, c 347, pt of §2; am L 1997, c 251, §18; am L 1998, c 207, §1; am L 2000, c 24, §6; am L 2016, c 82, §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-108 Unlawful use of motor vehicle insurance identification card.

§431:10C-108 Unlawful use of motor vehicle insurance identification card.
It shall be a violation of this article:
(1) For any person to make, issue, or knowingly use any fictitious or fraudulently altered motor vehicle insurance identification card; or
(2) For any person to display or cause or permit to be displayed a motor vehicle insurance identification card knowing that the motor vehicle insurance policy was canceled as provided in section 431:10C-111 and section 431:10C-112. [L 1987, c 347, pt of §2; am L 1997, c 251, §19]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-109 Motor vehicle insurance identification card after cancellation of policy; return to insurer, civil sanctions.

§431:10C-109 Motor vehicle insurance identification card after cancellation of policy; return to insurer, civil sanctions.
(a) When a motor vehicle insurance policy is canceled before the end of the policy period, the insured shall within thirty days after being notified of the cancellation:
(1) Return the motor vehicle insurance identification card to the insurer for the policy; or
(2) If the card is lost or stolen, submit to the insurer an affidavit signed by the insured stating that fact to the insurer.
(b) The insurer's notice of cancellation shall include:
(1) The reason for the cancellation; and
(2) A statement of actions which may be taken under this section if the card is not returned.
(c) If the card or affidavit is not returned within the period specified, the insurer may:
(1) If the premiums for the period shown on the motor vehicle insurance identification card have been prepaid, withhold the unearned portions of the premiums until the identification card or an affidavit signed by the insured has been returned. In addition, all premiums shall be considered "earned" until the card is returned.
(2) If the premiums for the period shown on the identification card have not been paid in full, bring a civil action for three times the unpaid portion of the premiums. Notwithstanding section 607-14, the insurer shall be awarded reasonable attorney's fees and court costs. If the motor vehicle insurance identification card is returned after the civil action is filed but before the matter is taken to trial, the insurer shall be awarded damages of not less than $100, but not more than the amount of the unpaid premiums together with reasonable attorney's fees and costs as provided in this section.
(d) Notwithstanding the provisions of this section, the imposition of criminal sanctions under section 431:10C-117 shall not be precluded. [L 1987, c 347, pt of §2; am L 1989, c 195, §32; am L 1997, c 251, §20; am L 2005, c 22, §26]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-110 Rejection of application, joint underwriting plan placement.

§431:10C-110 Rejection of application, joint underwriting plan placement.
A producer, including a branch office of a foreign or alien insurer, upon rejection of an application for a motor vehicle insurance policy or optional additional insurance, shall immediately offer, subject to the guidelines established by rules of the commissioner, to place the requested insurance coverages with the joint underwriting plan. [L 1987, c 347, pt of §2; am L Sp 1993, c 4, §2; am L 1997, c 251, §21; am L 2001, c 216, §18]
Cross References
Joint underwriting plan, see §431:10C-401, et seq.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-110.5 Replacing motor vehicle insurance policy through an insurer's affiliate or subsidiary.

§431:10C-110.5 Replacing motor vehicle insurance policy through an insurer's affiliate or subsidiary.
An insurer shall be exempt from provisions governing policy cancellations or nonrenewals in sections 431:10C-111, 431:10C-111.5, and 431:10C-112 if:
(1) The insurer offers to replace the insured's policy through the insurer's affiliate or subsidiary;
(2) The replacement policy is effective upon the expiration of the existing policy;
(3) The replacement policy provides the same or better coverage, terms, and conditions as the existing policy at a lower premium than the existing policy;
(4) The insurer provides at least thirty days written notice of the prospective replacement to the insured; provided that the insured may waive notice pursuant to this paragraph; and
(5) The insured accepts the replacement policy. [L 2011, c 11, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-111 Cancellation and nonrenewal of policies: when prohibited, when permitted.

§431:10C-111 Cancellation and nonrenewal of policies: when prohibited, when permitted.
(a) An insurer may not cancel or refuse to renew a motor vehicle insurance policy, including optional additional insurance under the requirements of section 431:10C-302, once issued except when:
(1) The license of the principal operator to operate the type of motor vehicle is suspended or revoked;
(2) Premium payments for the policy are not made after reasonable demand therefor;
(3) The nonrenewal or conditional renewal is limited in accordance with section 431:10C-111.5; or
(4) A motor vehicle insurance policy has been in effect for sixty days or less and cancellation of the policy is not based on any of the criteria prohibited by subsection (c).
(b) An insurer may refuse to renew optional additional coverage in excess of that which the insurer is required to make available to the insured under section 431:10C-302 where the insured is a member of a class set forth in section 431:10C-407(b)(1)(A) or (B) at the time of the refusal to renew.
(c) No insurer shall refuse to continue a motor vehicle insurance policy based solely upon a person's race, creed, ethnic extraction, age, sex, length of driving experience, marital status, residence, physical handicap, or because an insured has elected to obtain any required or optional coverage or deductible required by law. If an insured alleges that the insurer's refusal to continue the motor vehicle insurance policy is based solely upon the insured's race, creed, ethnic extraction, age, sex, length of driving experience, marital status, residence, physical handicap, or because the insured has elected to obtain any required or optional coverage or deductible provided by law, the burden of proof shall rest with the insurer to prove that the refusal to continue the policy was not based on noncompliance with this subsection.
(d) An insurer may also refuse to renew motor vehicle insurance policies:
(1) If the commissioner determines that the financial soundness of the insurer would be impaired by the writing of additional policies of insurance; or
(2) The insurer ceases to write any new policies of insurance of any kind in this State.
(e) Within fifteen days of a cancellation and the return of the motor vehicle insurance identification card or a signed affidavit stating the card was lost or stolen, the insurer shall refund the pro rata unearned portion, if any, of any prepaid premiums. Premiums shall be considered "earned" as provided in section 431:10C-109. [L 1987, c 347, pt of §2; am L 1989, c 195, §33; am L Sp 1993, c 4, §3; am L 1997, c 251, §22; am L 2004, c 122, §40 and c 124, §1]
Case Notes
As this section applied to insured's Hawaii joint underwriting plan insurance policy such that insurer could not have canceled insured's policy unless it complied with the provisions of this section, insurer's failure to do so rendered its cancellation invalid. 105 H. 445, 99 P.3d 96 (2004).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-111.5 Limit on nonrenewals and conditional renewals.

§431:10C-111.5 Limit on nonrenewals and conditional renewals.
(a) The total number (rounded to the nearest whole number) of notices of intention not to renew a motor vehicle insurance policy, and of notices of intention to condition renewal upon reduction of limits of any coverage, which an insurer may issue, shall be limited for each calendar year to two per cent of the total number of covered policies of the insurer in force at last year-end in each of the insurer's rating territories in use in this State that have completed their required policy periods. However, the insurer may non-renew or conditionally renew one policy in any of the insurer's rating territories in use in this State if the applicable percentage limitation results in less than one policy. Cancellations, notices of intention not to renew, and notice of intention to conditionally renew made pursuant to section 431:10C-111(a)(1) and (a)(2), and section [431:10C-111(d)] shall be independent of and in addition to those permitted under this subsection.
(b) For every two new motor vehicle insurance policies that the insurer voluntarily writes in each rating territory, the insurer shall be permitted to non-renew or conditionally renew one additional motor vehicle insurance policy in that territory in excess of the two per cent limit established in subsection (a), subject to a fair and nondiscriminatory formula developed by the commissioner that shall consider the number of motor vehicle insurance policies written less cancellations initiated by the insurer within the first sixty days of the policy period. [L Sp 1993, c 4, §1; am L 1998, c 275, §8]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-112 Notice of cancellation or nonrenewal; effect on term of coverage.

§431:10C-112 Notice of cancellation or nonrenewal; effect on term of coverage.
(a) In the case of cancellation or nonrenewal of a motor vehicle insurance policy by the insurer, the insurer shall mail a written notice of prospective cancellation or nonrenewal to the insured not fewer than thirty days prior to the effective date of the cancellation or nonrenewal. The insurer shall continue all motor vehicle insurance and optional additional coverages in force for thirty days following the mailing; provided that in the case of cancellation for the nonpayment of premiums the insurer shall:
(1) Mail a written notice of prospective cancellation to the insured not fewer than twenty days prior to the effective date of the cancellation; and
(2) Continue all motor vehicle insurance and optional additional coverages in force for twenty days following the mailing.
Cancellation or nonrenewal shall not be deemed valid unless the mailing required by this section is supported by a certificate of mailing properly validated by the United States Postal Service.
(b) If the insurer has manifested in writing an offer to renew to the named insured at least thirty days prior to the end of the policy period and the offer is not accepted before the expiration of the policy term, the policy shall lapse upon that expiration date and section 431:10C-111 shall not apply. Notwithstanding other valid methods of acceptance, an offer shall be deemed accepted as of the date of mailing of the acceptance. The date of mailing may be evidenced by the postmark or a certificate of mailing properly validated by the United States Postal Service. [L 1987, c 347, pt of §2; am L 2004, c 124, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-112.5 Notice of cancellation for insurer ceasing to issue motor vehicle insurance policies. Any insurer authorized to issue motor vehicle insurance policies, which ceases to engage in the motor vehicle insurance business in this State, shall give written notice to each insured not less than sixty days prior to the effective date of closing its business. [L 1992, c 123, pt of §1; am L 1997, c 251, §23]

§431:10C-112.5
Notice of cancellation for insurer ceasing to issue motor vehicle insurance policies.
Any insurer authorized to issue motor vehicle insurance policies, which ceases to engage in the motor vehicle insurance business in this State, shall give written notice to each insured not less than sixty days prior to the effective date of closing its business. [L 1992, c 123, pt of §1; am L 1997, c 251, §23]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-113 Violation of rejection, cancellation and nonrenewal provisions.

§431:10C-113 Violation of rejection, cancellation and nonrenewal provisions.
(a) Whoever knowingly violates, or conspires to violate, the provisions of section 431:10C-110 and section 431:10C-111 shall be assessed a civil penalty in an amount not to exceed $1,000 for each separate violation. Each violation of section 431:10C-110 with respect to a policyholder or applicant for insurance shall constitute a separate violation.
(b) The principles of law and equity regarding fraud and misrepresentation of material fact shall apply with respect to optional-additional coverages which are in excess of those which the insurer is required to make available to insureds under section 431:10C-302. [L 1987, c 347, pt of §2]
Cross References
Insurance fraud, see § §431:2-401 to 431:2-410.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-114 Insured's obligations upon termination of insurance.

§431:10C-114 Insured's obligations upon termination of insurance.
An owner of a motor vehicle registered in this State who fails to maintain insurance as required by section 431:10C-104 shall:
(1) Immediately surrender the registration certificate and license plates for the vehicle to the county director of finance; and
(2) Not operate or permit operation of the vehicle in this State until insurance has again been obtained. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-115 Drivers education fund underwriters fee.

§431:10C-115
Drivers education fund underwriters fee.
(a) The commissioner shall assess and levy upon each insurer, and self-insurer, a drivers education fund underwriters fee of $3 a year on each motor vehicle insured by each insurer or self-insurer. This fee is due and payable on an annual basis by means and at a time to be determined by the commissioner.
(b) The commissioner shall deposit the fees into a special drivers education fund account.
(c) The commissioner shall allocate the fees deposited for each fiscal year in the following manner:
(1) $1 per registration to the commissioner to be expended for the operation of the drivers education program provided in section 286-128(d); and
(2) $2 per registration to the director of commerce and consumer affairs for:
(A) The drivers education program administered by the department of education for high school students; and
(B) The traffic safety education program established and administered by the department of education pursuant to section 302A-417.
(d) Motor vehicles insured under the joint underwriting plan shall be excluded from the drivers education fund assessment.
(e) The commissioner shall adopt rules in accordance with chapter 91 for the execution of this section and the distribution of this fund. [L 1987, c 347, pt of §2; am L 1989, c 208, §3; am L 1992, c 254, §3; am L 1993, c 280, §27; am L 1995, c 204, §2; am L 1996, c 89, §15 and c 243, §1; am L 1997, c 368, §6; am L 2000, c 24, §7; am L 2002, c 242, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-115.6 Disclosure of personal injury protection limits and payments. Every insurer shall advise every person entitled to personal injury protection benefits, as defined in section 431:10C-103.5(a), of the maximum amount of personal injury protection benefits available under the policy within thirty days of receiving an initial notice, claim, or application for personal injury protection benefits. The disclosure of personal injury protection policy limits shall include a description of the nature of personal injury protection benefits, matters covered by personal injury protection benefits, and the procedure for submitting personal injury protection claims. [L 1992, c 123, pt of §1; am L 1997, c 251, §25]

§431:10C-115.6
Disclosure of personal injury protection limits and payments.
Every insurer shall advise every person entitled to personal injury protection benefits, as defined in section 431:10C-103.5(a), of the maximum amount of personal injury protection benefits available under the policy within thirty days of receiving an initial notice, claim, or application for personal injury protection benefits. The disclosure of personal injury protection policy limits shall include a description of the nature of personal injury protection benefits, matters covered by personal injury protection benefits, and the procedure for submitting personal injury protection claims. [L 1992, c 123, pt of §1; am L 1997, c 251, §25]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-115.7 Plain language billings. A bill for a new and renewal policy or a notification included with the bill for the payment of premiums shall clearly identify each coverage in the policy, with the price of each coverage specified. [L 1997, c 251, pt of §2]

§431:10C-115.7
Plain language billings.
A bill for a new and renewal policy or a notification included with the bill for the payment of premiums shall clearly identify each coverage in the policy, with the price of each coverage specified. [L 1997, c 251, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-116 Challenges to motor vehicle insurance law; intervention by attorney general.

§431:10C-116 Challenges to motor vehicle insurance law; intervention by attorney general.
At the request of the commissioner, the attorney general shall intervene in any case before any appellate court in this State in which the constitutionality or validity of this article or any part thereof is at issue, and may appeal to the United States Supreme Court, if necessary, to obtain a final determination of any case. [L 1987, c 347, pt of §2; am L 1997, c 251, §26]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-117.5 Additional civil liability.

§431:10C-117.5 Additional civil liability.
An insurer whose insured causes death or injury to another person, and that is not entitled to the reduction provided in section 431:10C-301.5, shall be entitled to recover the amount of the covered loss deductible that would have applied from the insured whose conduct resulted in inapplicability of the covered loss deductible. [L 2000, c 70, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-118 Fee in lieu of fine; defense.

§431:10C-118 Fee in lieu of fine; defense.
(a) Any person bringing an action in tort under this article who was uninsured at the time of the accident shall pay a fee of $1,000 in lieu of any fine which could have been levied as a criminal penalty for failing to obtain the motor vehicle insurance coverage required by this article.
(b) The fee required under subsection (a) shall be paid by the person directly, or deducted from any settlement or verdict received, or both.
(c) No person shall be required to pay the fee in subsection (a) if the person can show proof of having been convicted in a prior criminal proceeding for failing to have motor vehicle insurance coverage on the date of the accident which is the subject of the tort action. [L 1987, c 347, pt of §2; am L 1997, c 251, §28]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-119 Insurer's requirements.

§431:10C-119 Insurer's requirements.
(a) Prior to licensing an insurer to transact a motor vehicle insurance business in this State, the commissioner:
(1) Shall effect a thorough examination of the insurer's business experience, financial soundness, and general reputation as an insurer in this and other states. In the discretion of the commissioner, this examination may include an examination of any or all of the business records of the insurer, and an audit of all or any part of the insurer's motor vehicle insurance business, each to be performed by the commissioner's staff or by independent consultants. No license shall be issued until the commissioner is satisfied as to the business experience, financial solvency, and the economic soundness of the insurer;
(2) Except for a member-owned reciprocal insurer and its wholly owned insurer subsidiaries, as specified in subsection (c), shall require of each insurer, and determine that satisfactory arrangements have been made for, the provision of a complete sales and claims service office in the State; provided that the establishment and maintenance of an office by licensed producers of an insurer in every county the insurer does business shall meet the requirements of this paragraph; provided further that the preceding shall not be required for the county of Kalawao; and
(3) Notwithstanding any other requirements of this section or of the insurance code, may require a bond in a reasonable amount and with deposits or sureties determined in the commissioner's discretion of any applicant for a license hereunder. The commissioner may, at any time, make and enforce such a requirement of any licensed insurer or self-insurer.
(b) The commissioner, prior to issuing a certificate of self-insurance to any person, shall require the applicant to provide for a complete claims service office and an officer for the purpose of service of process in this State.
(c) A member-owned reciprocal insurer and its wholly owned insurer subsidiaries shall make satisfactory arrangements for claims service and adjustment and for policy service of all policies sold or issued to consumers in this State if:
(1) A majority of its members are members of the United States military services, veterans of the United States military services, current or former spouses or dependents of these persons; and
(2) The primary purpose of the insurer is to serve these persons.
The member-owned reciprocal insurer and its wholly owned insurer subsidiaries, upon request by the commissioner, shall provide in writing, specific information as to those arrangements.
(d) The commissioner shall adopt rules to permit any licensed accident and health or sickness insurer to secure a license to engage in the business of motor vehicle insurance to provide only those personal injury protection benefits defined in section 431:10C-103.5(a) and optional major medical coverages. [L 1987, c 347, pt of §2; am L 1997, c 251, §29; am L 1998, c 275, §10; am L 2003, c 212, §83; am L 2004, c 36, §1 and c 122, §41; am L 2018, c 216, §2; am L 2019, c 19, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-120 Prohibitions, penalty.

§431:10C-120 Prohibitions, penalty.
(a) No insurer shall issue or offer to issue any policy which the insurer represents is a motor vehicle insurance policy unless such insurer meets the requirements of this article.
(b) Any insurer, any producer, or any representative of an insurer who violates subsection (a) shall be subject to section 431:10C-117. [L 1987, c 347, pt of §2; am L 1989, c 195, §34; am L 1997, c 251, §30; am L 1998, c 275, §11; am L 2001, c 216, §19]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-121 Severability.

§431:10C-121 Severability.
(a) Except as provided in subsection (b), if any provision of this article or its application to any person or circumstance is held unconstitutional, the remainder of this article and the application of such provision to other persons or circumstances shall not be affected thereby. It shall be conclusively presumed that the legislature would have enacted the remainder of the article without such invalid or unconstitutional provision.
(b) In the event section 431:10C-306(a) to (d) is held constitutionally invalid, then it is the intent of the legislature that the following sections only shall be voided:
(1) 431:10C-104;
(2) 431:10C-105;
(3) 431:10C-120;
(4) 431:10C-303;
(5) 431:10C-304; and
(6) 431:10C-305.
It shall be conclusively presumed that the legislature would have enacted the remainder of this article without such invalid or unconstitutional provision. [L 1987, c 347, pt of §2; am L 1989, c 195, §35; am L 1997, c 251, §31]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-122 Payment of general excise tax and certificate of ownership fee on third-party claims.

§431:10C-122 Payment of general excise tax and certificate of ownership fee on third-party claims.
(a) When a motor vehicle insurer settles a total loss motor vehicle damage liability claim with a third-party claimant, the insurer shall pay the applicable general excise tax and certificate of ownership fee, subject to section 663-31; provided that if the third-party claimant cannot substantiate the purchase and the payment of the general excise tax and certificate of ownership fee by submitting to the insurer appropriate documentation within thirty-three days after the receipt of settlement, the insurer shall not be required to reimburse the third-party claimant for the tax or fee.
(b) In lieu of the procedure in subsection (a), the insurer may directly pay the required general excise tax and certificate of ownership fee to the third-party claimant at the time of settlement.
(c) An insurer's obligation to reimburse a third-party claimant for the applicable general excise tax and certificate of ownership fee as set forth in this section shall be subject to the property damage liability limit of the policy. [L 2017, c 152, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-202 Making of motor vehicle insurance rates.

§431:10C-202 Making of motor vehicle insurance rates.
All premium rates for motor vehicle insurance shall be made in accordance with article 14 and the following provisions:
(1) Notwithstanding any other law to the contrary, no insurer shall agree, combine, or conspire with any other private insurer or enter into, become a member of, or participate in any understanding, pool, or trust, to fix, control, or maintain, directly or indirectly, motor vehicle insurance rates. Any violation of this section shall subject the insurer and each of its officers and employees involved to the penalties of chapter 480 without benefit of any exemption otherwise permitted by section 480-11; provided that this paragraph shall not apply to advisory organizations referred to in section 431:14-111 which are not involved in ratemaking under this article.
(2) Notwithstanding any provision in this section to the contrary, the plans and rates for any surcharge or credit included by an insurer as part of the proposed rate filing shall be separately identified. Only reasonable surcharges approved by the commissioner shall be used; provided that no surcharge for the failure to maintain motor vehicle insurance shall be approved by the commissioner unless the insured has previously been convicted of driving without insurance within the preceding three years. Credits shall be deemed reasonable if there is no objection by the commissioner. Insurers shall furnish the prospective insured with a written explanation, in easily understandable language, clearly describing the reason for the surcharge or credit and how the amount of the surcharge or credit is determined. [L 1987, c 347, pt of §2 as superseded by c 349, §7; am L 1990, c 159, §2 and c 218, §2; am L 1992, c 123, §3 and c 124, §3; am L 1997, c 251, §32]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-202.5 Immediate rate freeze; rate reduction; relief.

§431:10C-202.5 Immediate rate freeze; rate reduction; relief.
(a) No insurer may increase motor vehicle insurance rates between June 3, 1992, and December 31, 1993.
(b) Commencing on January 1, 1993, all authorized insurers transacting motor vehicle insurance in this State shall implement a fifteen per cent rate reduction from the rates on file with the commissioner for all motor vehicle insurance policies in effect on March 1, 1992, and for each new and renewal policy issued thereafter. The reduced rate shall continue to apply to each new and renewal policy for a period of one year.
(c) There shall be no exception to the requirements of this section unless the commissioner, pursuant to an insurer's petition, finds that those requirements will result in imminent danger of insolvency of the insurer. An insurer who contends that a rate required by this section will result in imminent danger of insolvency of the insurer shall designate in its petition the rate it contends is appropriate and shall state with specificity the factors and data upon which it relies. The insurer shall be permitted to use all generally accepted actuarial techniques in filing any petition pursuant to this subsection. The insurer shall have the burden of proof to actuarially justify any rate increase from those provided for in subsections (a) and (b) and shall furnish all information, facts, and data requested by the commissioner reviewing any rate request.
(d) Effective January 1, 1994, all insurers shall include data on the impact of the provisions of Acts 123 and 124, Session Laws of Hawaii 1992, on all requested rate adjustments. The commissioner shall not approve any rate adjustments that do not contain a statement of the impact of the provisions of Acts 123 and 124, Session Laws of Hawaii 1992, the method used in calculating such impact, and the data used to determine such impact. [L 1992, c 123, pt of §1, §9 and c 124, pt of §1]
Revision Note
In subsection (a), "June 3, 1992," substituted for "the effective date of this Act" pursuant to §23G-15.
In subsection (d), reference to Act 124 added pursuant to §23G-15.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-203 Rate filings.

§431:10C-203 Rate filings.
The commissioner may accept from an advisory organization basic standards, manuals of classification, territories, endorsements, forms, and other materials, not dealing with rates, for reference filings by insurers. [L 1987, c 347, pt of §2 as superseded by c 348, §17; am L 1989, c 207, §13; am L 1992, c 124, §4]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-205 Rate review: request by aggrieved party.

§431:10C-205 Rate review: request by aggrieved party.
(a) Any person aggrieved by the application as to such person of any classification, rule, standard, rate, or rating plan made, followed, or adopted by an insurer may make written request to the commissioner to review such application and grant the relief requested. If the commissioner finds that probable cause for the complaint exists or that the complaint charges a violation of this article or any applicable provision of article 14, the commissioner shall conduct a hearing on the complaint. The hearing shall be subject to the procedure provided in section 431:14-118.
(b) If, after a hearing conducted pursuant to subsection (a), the commissioner finds that the complainant is entitled to relief or that any classification, rule, standard, rate, rating territory, or rating plan violates this article or any applicable provisions of article 14, the commissioner shall issue an order granting the complainant's claim for relief or prohibiting the insurer from using such classification, rule, standard, rate, rating territory, or rating plan. The order shall contain the commissioner's findings of fact and conclusions of law, including a specification of the respects in which a violation of this article or article 14 exists and specifying a reasonable time period within which the insurer shall comply with the terms of the order. Any such order shall be subject to judicial review in the manner provided in chapter 91. [L 1987, c 347, pt of §2]