reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-206.5 Group insurance plans. (a) Notwithstanding section 431:12-104(a), any insurer may issue any insurance coverage on a group plan, without restriction as to the purpose of the group, occupation, or type of group. Group insurance rates shall not be considered to be unfairly discriminatory, if they are averaged broadly among other persons insured under the group plan. (b) This section is additional to article 12 and other provisions of law, with the exception of section 431:12-104(a), relating to group insurance. [L 1997, c 251, pt of §2; am L 1998, c 275, §13]

§431:10C-206.5
Group insurance plans.
(a) Notwithstanding section 431:12-104(a), any insurer may issue any insurance coverage on a group plan, without restriction as to the purpose of the group, occupation, or type of group. Group insurance rates shall not be considered to be unfairly discriminatory, if they are averaged broadly among other persons insured under the group plan.
(b) This section is additional to article 12 and other provisions of law, with the exception of section 431:12-104(a), relating to group insurance. [L 1997, c 251, pt of §2; am L 1998, c 275, §13]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-207 Discriminatory practices prohibited.

§431:10C-207 Discriminatory practices prohibited.
No insurer shall base any standard or rating plan, in whole or in part, directly or indirectly, upon a person's race, creed, ethnic extraction, age, sex, length of driving experience, credit bureau rating, marital status, or physical handicap. [L 1987, c 347, pt of §2]
Case Notes
Section 431:10C-117 mandates that an insurer be fined if it violates this section, but gives the commissioner some discretion as to the amount of the fine; commissioner's imposition of $3,000 fine was not an abuse of discretion as it satisfied the statutory requirements. 104 H. 261, 88 P.3d 196 (2004).
This section applies to both rating plans and standards, including underwriting standards; thus, commissioner and trial court correctly concluded that insurer improperly denied plaintiff's application for insurance. 104 H. 261, 88 P.3d 196 (2004).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-208 Increase in premiums prohibited.

§431:10C-208 Increase in premiums prohibited.
No premium on any motor vehicle insurance policy shall be increased as a result of any accident if the insured is not at fault in the accident. An accident in which the insured was not at fault shall not be used in any way to affect any subsequent increases, including loss of any discounts, in insurance premiums. [L 1987, c 347, pt of §2; am L 1997, c 251, §33; am L 1998, c 275, §14]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-209 Rate administration.

§431:10C-209 Rate administration.
(a) Except as otherwise provided in this article, the commissioner shall implement and evaluate motor vehicle insurance rates in compliance with article 14.
(b) The commissioner shall order insurers to rebate to policyholders any excessive profit realized by insurers from their operations. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-210 Publication of premium information.

§431:10C-210 Publication of premium information.
(a) Upon the commissioner's request, all motor vehicle insurers shall provide motor vehicle insurance premium information to the commissioner within thirty days of the request.
(b) The commissioner shall publish annually, by electronic or online publication on the official website of the insurance division, a list of all motor vehicle insurers with representative annual premiums for motor vehicle insurance. The commissioner shall have information on premiums for motor vehicle insurance, which shall be available to the public on request. [L 1987, c 347, pt of §2; am L 1992, c 124, §5; am L 2010, c 116, §1(18); am L 2012, c 258, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-212 Administrative hearing on insurer's denial of claim.

§431:10C-212 Administrative hearing on insurer's denial of claim.
(a) If a claimant or provider of services objects to the denial of benefits by an insurer or self-insurer pursuant to section 431:10C-304(3)(B) and desires an administrative hearing thereupon, the claimant or provider of services shall file with the commissioner, within sixty days after the date of denial of the claim, the following:
(1) Two copies of the denial;
(2) A written request for review; and
(3) A written statement setting forth specific reasons for the objections.
(b) The commissioner has jurisdiction to review any denial of personal injury protection benefits.
(c) The commissioner shall:
(1) Conduct a hearing in conformity with chapter 91 to review the denial of benefits;
(2) Have all the powers to conduct a hearing as set forth in section 92-16; and
(3) Affirm the denial or reject the denial and order the payment of benefits as the facts may warrant, after granting an opportunity for hearing to the insurer and claimant.
(d) The commissioner may assess the cost of the hearing upon either or both of the parties.
(e) Either party may appeal the final order of the commissioner in the manner provided for by chapter 91. [L 1987, c 347, pt of §2; am L 1992, c 124, §7; am L 1997, c 251, §35]
Case Notes
The first party to choose a forum for resolution of no-fault dispute binds the other party to that forum unless the circuit court finds that the parties have entered into a mandatory and binding arbitration agreement. 86 H. 59, 947 P.2d 371 (1997).
1992 amendment to subsection (a) applies to claims arising from injuries sustained in accidents occurring before January 1, 1993; thus, provider had standing to contest insurer's denial of no-fault insurance benefits. 90 H. 1, 975 P.2d 211 (1999).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-213 Arbitration.

§431:10C-213 Arbitration.
(a) A claimant, insurer, or provider of services may submit any dispute relating to a motor vehicle insurance policy to an arbitrator by filing a written request with the clerk of the circuit court in the circuit where the accident occurred.
(b) The administrative judge of each circuit court shall maintain a current list of persons qualified and willing to act as arbitrators and shall, within ten days of the date of filing of a request for arbitration, appoint an arbitrator from such list to hear and determine the claim.
(c) Except as otherwise provided herein, the arbitration shall be in accordance with and governed by the provisions of chapter 658A.
(d) Any fee or cost of the arbitrator shall be borne equally by the parties unless otherwise allocated by the arbitrator.
(e) An appeal may be taken from any judgment of the arbitrator to the circuit court in the manner provided for in rule 72 of the Hawaii Rules of Civil Procedure. [L 1987, c 347, pt of §2; am L 1992, c 124, §8; am L 1997, c 251, §36; am L 2001, c 265, §4]
Case Notes
Hawaii's public policy strongly favors arbitration when dispute centers on automobile insurance policy. 769 F. Supp. 1135 (1991).
The first party to choose a forum for resolution of no-fault dispute binds the other party to that forum unless the circuit court finds that the parties have entered into a mandatory and binding arbitration agreement. 86 H. 59, 947 P.2d 371 (1997).
Where plaintiff and defendant's insurer did not have a written agreement in compliance with §658-1, this section did not by itself provide independent authority to compel arbitration. 86 H. 59, 947 P.2d 371 (1997).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-213.5 Binding arbitration. (a) A claimant or defendant shall have the option to elect arbitration to resolve a claim in tort that is covered by motor vehicle liability insurance. (b) A claimant or defendant may submit any dispute relating to a tort claim to binding arbitration by either filing a written request with the clerk of the circuit court in the circuit where the accident occurred or by agreement. (c) A claimant or defendant shall have the opportunity to decline arbitration. (d) Except as otherwise provided herein, arbitration shall be in accordance with and governed by chapter 658A. (e) Fees and costs of arbitration shall be borne equally by the parties, unless otherwise agreed to by the parties. (f) Collection of any arbitration award issued under this section shall be limited to the applicable liability policy limit, unless the insured tortfeasor otherwise agrees. (g) The amount of an arbitration award under this section shall not be binding on a subsequent underinsured motorist claim. [L 1998, c 275, §3; am L 2000, c 181, §1; am L 2001, c 265, §4]

§431:10C-213.5
Binding arbitration.
(a) A claimant or defendant shall have the option to elect arbitration to resolve a claim in tort that is covered by motor vehicle liability insurance.
(b) A claimant or defendant may submit any dispute relating to a tort claim to binding arbitration by either filing a written request with the clerk of the circuit court in the circuit where the accident occurred or by agreement.
(c) A claimant or defendant shall have the opportunity to decline arbitration.
(d) Except as otherwise provided herein, arbitration shall be in accordance with and governed by chapter 658A.
(e) Fees and costs of arbitration shall be borne equally by the parties, unless otherwise agreed to by the parties.
(f) Collection of any arbitration award issued under this section shall be limited to the applicable liability policy limit, unless the insured tortfeasor otherwise agrees.
(g) The amount of an arbitration award under this section shall not be binding on a subsequent underinsured motorist claim. [L 1998, c 275, §3; am L 2000, c 181, §1; am L 2001, c 265, §4]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-214 Administration.

§431:10C-214 Administration.
In order to carry out the provisions and fulfill the purpose of this article, the commissioner shall:
(1) Consult with representatives of the private insurance business, such other persons, public and consumer organizations, and agencies of the federal, state or local governments as the commissioner deems necessary;
(2) Adopt, amend and repeal such rules, pursuant to chapter 91, as the commissioner deems necessary to carrying out and fulfilling the purposes of this article, and to establishing standards for the prompt, fair and equitable disposition of all claims arising out of motor vehicle accidents; and
(3) Appoint such personnel as necessary for the performance of the commissioner's functions under this article. All personnel appointed under this section shall be subject to chapter 76. [L 1987, c 347, pt of §2; am L 2000, c 253, §150]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-215 Inspection and audit.

§431:10C-215 Inspection and audit.
(a) In addition to the right and duty of examination under article 2, the commissioner shall have the right and the duty of visitation, inspection and audit of all business records, including internal memoranda, audits and correspondence related in any way to the insurer's motor vehicle insurance business in this State.
(b) The commissioner shall, in the commissioner's discretion, cause an audit to be made of all or any segment of the motor vehicle insurance books and business records of any insurer by the staff of the division or by an independent contract examiner. A copy of every audit, internal or external, performed by any insurer of any aspect of its motor vehicle books and business records shall be submitted immediately upon completion to the commissioner.
(c) The commissioner shall assess and collect from each insurer, self-insurer, and from every applicant for a certificate of self-insurance or a license to transact a motor vehicle insurance and optional additional insurance business in this State, such portion of the full cost of every audit, inspection, examination, visitation, and other services related to motor vehicle insurance required by this or any other article, or performed by the commissioner in the commissioner's discretion under this article or this code, as the commissioner deems equitable in the rendering of the service. Assessments collected shall be paid into the compliance resolution fund.
(d)(1) Each insurer licensed to transact motor vehicle insurance or optional additional insurance business in this State shall provide the commissioner with periodic reports on every aspect of the motor vehicle insurance and the optional additional insurance business the insurer transacts in this State, including, but not limited to reports on the investment, reserve, reinsurance, loss and profit experience, ratemaking and schedules, claims received and paid; and
(2) Each insurer subject to this section shall, not less frequently than quarterly, maintain a report of the details of each claim received, claim paid, application for and sale of a motor vehicle insurance policy, each termination and renewal refusal notice posted, and each cancellation and refusal to renew effected on both motor vehicle insurance and optional additional insurance policy transactions. The insurer shall make available and submit a report to the commissioner at the commissioner's request.
(e) Any insurer failing to report information in the manner and within the time required by the commissioner, or failing fully to cooperate with the commissioner and the commissioner's staff in the fulfillment of their duties under this article and this code shall be subject to the penalty provided in section 431:14-117. [L 1987, c 347, pt of §2; am L 1997, c 251, §37; am L 1998, c 275, §15; am L 2003, c 212, §84; am L 2010, c 116, §1(19)]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10G-201 Making of motorcycle and motor scooter insurance rates.

§431:10G-201 Making of motorcycle and motor scooter insurance rates.
(a) All premium rates for motorcycle and motor scooter insurance shall be made in accordance with the following provisions:
(1) Rates shall not be excessive, inadequate, or unfairly discriminatory;
(2) Due consideration shall be given to:
(A) Past and prospective loss experience within and outside this State, catastrophe hazards, if any, reasonable margin for profit, and contingencies, dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers;
(B) Past and prospective expenses both country-wide and those specially applicable to this State in the sale and administration of motorcycles and motor scooters insurance; and
(C) Investment income from reserves, unearned insurance premiums, and other unearned proceeds received on account of motorcycle and motor scooter insurance sold, and all other factors that may be deemed relevant, if they are established to have a probable effect upon losses, expense, or rates, such as but not limited to types of vehicles, occupations, and involvement in past accidents;
(3) The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of any insurer or group with respect to any class of insurance, or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable; and
(4) Risks may be grouped by classifications for the establishing of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. The standards may measure any differences among risks that can be demonstrated to have a probable effect upon losses or expenses.
(b) Except to the extent necessary to meet the provisions of subsection (a)(4), uniformity among insurers in any matters within the scope of this section is neither required nor prohibited.
(c) After June 7, 1989, each insurer of a motorcycle or motor scooter shall provide a fifteen per cent reduction off premium charges each insurer assesses for each new and renewal policy for liability coverage issued pursuant to this article if the applicant has successfully completed a motorcycle education course approved by the department of transportation. [L 1989, c 208, pt of §1]
Revision Note
"June 7, 1989" substituted for "the effective date of this section" pursuant to §23G-15.
Case Notes
Discussed: 78 H. 325, 893 P.2d 176 (1995).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10G-202 Rate filings.

§431:10G-202 Rate filings.
(a) Every insurer shall file with the commissioner every manual of classification, rule, rate, rating plan, designation of rating territories, or standard for motorcycle or motor scooter insurance which it proposes to use. Every filing shall state the proposed effective date of the filing and the character and extent of the coverage contemplated.
(b) The commissioner also 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.
(c) Each filing shall be accompanied by a $20 fee payable to the commissioner, which fee shall be deposited in the commissioner's education and training fund.
(d) A filing and any supporting information shall be open to the public upon filing with the commissioner. [L 1989, c 208, pt of §1]
Cross References
Commissioner's education and training fund, see §431:2-214.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10G-203 Rate review: request by aggrieved party.

§431:10G-203 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, the commissioner shall conduct a hearing on the complaint according to the procedure set forth 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, 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 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 1989, c 208, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10G-204 Rate review: rate methods in noncompliance with article.

§431:10G-204 Rate review: rate methods in noncompliance with article.
(a) If the commissioner has good cause to believe that a classification, rule, standard, rate, rating territory, or rating plan made, followed, or adopted by an insurer does not comply with the requirements of this article, the commissioner shall, unless the commissioner has good cause to believe that such noncompliance is wilful, give notice in writing to each insurer, stating in what manner and to what extent such noncompliance is alleged to exist and specifying a reasonable time, not less than ten days thereafter, within which such noncompliance may be corrected. Notices under this subsection shall be confidential as between the commissioner and the parties unless a hearing is held as provided in subsection (b).
(b) If the commissioner has good cause to believe such noncompliance to be wilful, or if, within the period prescribed by the commissioner in the notice given under subsection (a), the insurer does not:
(1) Correct the noncompliance specified by the commissioner; or
(2) Establish to the satisfaction of the commissioner that such noncompliance does not exist,
then the commissioner may proceed with a hearing which shall be subject to the hearing procedure provided in section 431:14-118. [L 1989, c 208, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-301.5 Covered loss deductible.

§431:10C-301.5 Covered loss deductible.
Whenever a person effects a recovery for bodily injury, whether by suit, arbitration, or settlement, and it is determined that the person is entitled to recover damages, the judgment, settlement, or award shall be reduced by $5,000 or the amount of personal injury protection benefits incurred, whichever is greater, up to the maximum limit. The covered loss deductible shall not include benefits paid or incurred under any optional additional coverage, benefits paid under any public assistance program, or benefits paid or incurred under chapter 386. [L 1997, c 251, pt of §2; am L 1998, c 275, §17; am L 2004, c 174, §2; am L 2012, c 32, §1]
Case Notes
The covered loss deductible provision of this section applied to the insureds' recovery of bodily injury damages under their uninsured motorist coverage with insurer. 103 H. 142, 80 P.3d 321 (2003).
Where defendant failed to (1) raise the covered loss deductible statute during the arbitration proceedings, (2) apply to the arbitration administrator or the arbitration judge to reduce the awards, or (3) file a notice of appeal and request a trial de novo, pursuant to Hawaii Arbitration Rules rule 21, the arbitration awards were entered as unappealable final judgments, which the trial court was precluded from modifying or vacating. 105 H. 93, 94 P.3d 648 (2004).
Applying the covered loss deductible under this section to plaintiff's recovery of underinsured motorist benefits did not violate plaintiff's constitutional right to substantive due process as the legislature's policy determination to enact this section to reduce one of the costs of the motor vehicle insurance system was expressly within the constitutional purview of the legislature. 106 H. 511, 107 P.3d 440 (2005).
The covered loss deductible applies to underinsured motorist coverage. 106 H. 511, 107 P.3d 440 (2005).
This section mandates that the "award shall be reduced by the amount of personal injury protection (PIP) benefits"; as this section does not state that the award should be reduced after apportionment by the amount of PIP benefits, the covered loss deductible is to be deducted from the "total damages" awarded by the trier of fact prior to apportionment of the damages; thus, circuit court erred when it subtracted the covered loss deductible from the jury's damage award after apportioning the damages. 124 H. 236 (App.), 240 P.3d 899 (2010).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-302.5 Managed care option.

§431:10C-302.5 Managed care option.
(a) An insurer may offer, and provide at the option of the named insured, the personal injury protection benefits through managed care providers such as a health maintenance organization or preferred provider organization. The option may include conditions and limitations to coverage, including deductibles and coinsurance requirements, as approved by the commissioner. The commissioner shall approve those conditions and limitations if the benefits are substantially comparable to or exceed the requirements of section 431:10C-103.5.
(b) An insurer offering the coverages authorized under subsection (a) shall demonstrate in rate filings submitted to the commissioner the savings to the insured to be realized under subsection (a). [L 1997, c 251, pt of §2; am L 1998, c 275, §19]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-303 Right to personal injury protection benefits.

§431:10C-303 Right to personal injury protection benefits.
(a) If the accident causing accidental harm occurs in this State, every person insured under this article, and such person's survivors, suffering loss from accidental harm arising out of the operation, maintenance, or use of a motor vehicle, has a right to personal injury protection benefits.
(b) If the accident causing accidental harm occurs outside this State, the following persons and their survivors suffering loss from accidental harm arising out of the operation, maintenance, or use of a motor vehicle, have a right to personal injury protection benefits as defined in section 431:10C-103.5(a):
(1) Insureds as defined in section 431:10C-103; and
(2) The driver and other occupants of an insured vehicle, other than a vehicle which is regularly used in the course of the business of transporting persons or property and which is one of five or more vehicles under common ownership. [L 1987, c 347, pt of §2; am L 1997, c 251, §40]
Case Notes
Injury and subsequent death of automobile passenger shot by person who walked up to stopped vehicle did not arise out of use of motor vehicle. 776 F. Supp. 1432 (1991).
Right to no-fault benefits is not absolute. 73 H. 552, 836 P.2d 1074 (1992).
As motorcycles are excluded from the definition of "motor vehicle" under §431:10C-103, appellant's accident with a motorcycle was not a "motor vehicle accident" under the definition set forth in §431:10C-103; appellant was thus not entitled to no-fault benefits under subsection (a) (1993). 91 H. 299 (App.), 983 P.2d 200 (1999).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-305.5 Right to reimbursement of deductible paid; when.

§431:10C-305.5 Right to reimbursement of deductible paid; when.
If an insured is involved in an accident with an uninsured motorist and the insured paid a deductible amount for damages incurred in that accident, and if the insurer recovers any money from the uninsured motorist, the insurer shall reimburse the insured, provided that:
(1) The amount recovered shall be divided equally between the insured and the insurer;
(2) The amount of the insured's reimbursement shall not exceed the deductible paid; and
(3) If the amount of damages exceeds $2,500, the insurer shall:
(A) Pay the full amount of the deductible to the insured; or
(B) Initiate proceedings against the uninsured motorist to recover damages. [L 1988, c 21, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-307 Reimbursement of duplicate benefits.

§431:10C-307 Reimbursement of duplicate benefits.
Whenever any person effects a tort liability recovery for accidental harm, whether by suit or settlement, which duplicates personal injury protection benefits already paid under the provisions of this article, the motor vehicle insurer shall be reimbursed fifty per cent of the personal injury protection benefits paid to or on behalf of the person receiving the duplicate benefits up to the maximum limit. [L 1987, c 347, pt of §2; am L 1989, c 83, §1; am L 1997, c 251, §44; am L 1998, c 275, §24]
Case Notes
Cited: 73 H. 403, 833 P.2d 890 (1992).
Discussed: 76 H. 304, 875 P.2d 921 (1994).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-309 Total loss motor vehicle claims.

§431:10C-309 Total loss motor vehicle claims.
When a motor vehicle insurance policy provides for the adjustment and settlement of an insured's motor vehicle's total losses on the basis of actual cash value or replacement, the insurer shall follow either the replacement method set forth in section 431:10C-310 or the cash settlement method set forth in section 431:10C-311. [L 1987, c 347, pt of §2; am L 1997, c 251, §47]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-310 Total loss motor vehicle claims: replacement.

§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 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) 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) 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. Evidence of the insured's rejection shall be apparent in the file; and
(4) 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. 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. [L 1987, c 347, pt of §2; am L 1997, c 251, §48]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-312 Payment of excise tax and certificate of ownership fee.

§431:10C-312 Payment of excise tax and certificate of ownership fee.
(a) When a replacement vehicle is provided under section 431:10C-310 or section 431:10C-311, the insurer shall pay the applicable general excise tax and ownership fee as follows:
(1) If a cash settlement is provided, and if within thirty days of the receipt of the settlement by the insured, the insured has purchased a vehicle, the insurer shall reimburse the insured for the applicable general excise tax and certificate of ownership fee incurred on account of the purchase of the vehicle, but not exceeding the amount payable on account of the value of the total loss vehicle.
(2) If the insured purchases a vehicle with a market value less than the amount of the settlement, then the insurer shall reimburse only the amount of the applicable general excise tax and certificate of ownership fee incurred by the insured.
(b) If the insured cannot substantiate the purchase and the payment of the taxes and fee, by submission to the insurer of appropriate documentation within thirty-three days after the receipt of settlement, the insurer shall not be required to reimburse the insured for the taxes or fee.
(c) In lieu of the reimbursement procedure set out in subsection (a), the insurer may directly pay the required amounts of general excise taxes and certificate of ownership fee to the insured at the time of settlement.
(d) Written notice of the payment procedure outlined in this section shall be communicated to the insured at the time of settlement, together with any form required by the insurer for applying for the reimbursement. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-313 Insurer practices regarding loss of use, storage and towing, and betterment.

§431:10C-313 Insurer practices regarding loss of use, storage and towing, and betterment.
(a) In motor vehicle property damage liability claims in which liability is reasonably clear, the insurer shall pay for the reasonable and necessary costs, in direct proportion to the extent of its liability, incurred in the rental of another motor vehicle as long as the loss of use claim is submitted and substantiated.
(b)(1) The insurer shall provide reasonable notice to an insured prior to termination of payment for motor vehicle storage charges and document the notice in the claim file. Sufficient notice to the insured to allow the insured to remove the vehicle from storage prior to the termination of payment shall constitute reasonable notice.
(2) The insurer shall pay any and all reasonable towing charges, irrespective of the towing company used by the insured, unless the insurer has provided the insured with the name of a specific towing company prior to the insured's use of another towing company. Any determination of reasonable towing charges shall consider policy coverage as well as the cost and distances involved in each claim.
(3) An insurer shall make no advance charge deductions for storage and towing charges unless excessive charges have resulted from the insured's own actions. The insurer shall itemize each advance charge deduction and maintain in its claim file documentation of the reasons and dollar amounts involved in each deduction.
(c) Betterment deductions are allowable only if the deductions:
(1) Reflect a measurable decrease in market value attributable to the poorer condition of, or prior damage to, the insured vehicle;
(2) Are for prior wear and tear, missing parts and rust damage that is reflective of the general overall condition of the vehicle considering its age; provided that any deductions for this type of damage shall not exceed $500; and
(3) Are measurable, itemized, specified as to dollar amount, and documented in the insurer's claim file.
(d) No insurer shall require the insured or claimant to supply parts for replacement. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-313.5 Preferred repair provider. An insurer may have a preferred repair provider program. All insurers having such a program shall: (1) Make appropriate rate filings with the insurance commissioner to reflect the reduced premiums; and (2) Offer a choice of no less than two preferred repair providers to the claimant, if available. [L 1997, c 251, pt of §2]

§431:10C-313.5
Preferred repair provider.
An insurer may have a preferred repair provider program. All insurers having such a program shall:
(1) Make appropriate rate filings with the insurance commissioner to reflect the reduced premiums; and
(2) Offer a choice of no less than two preferred repair providers to the claimant, if available. [L 1997, c 251, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-313.6 Original equipment manufacturer's and like kind and quality parts. (a) An insurer shall make available a choice to the insured of authorizing a repair provider to utilize a like kind and quality part of an equal or better quality than the original equipment manufacturer part if such part is available or an original equipment manufacturer part for motor vehicle body repair work. If the insured or claimant chooses the use of an original equipment manufacturer part, the insured or claimant shall pay the additional cost of the original equipment manufacturer part that is in excess of the equivalent like kind and quality part, unless original equipment parts are required by the vehicle manufacturer's warranty. (b) A like kind and quality part under subsection (a), of an equal or better quality than the original equipment manufacturer part, shall carry a guarantee in writing for the quality of the like kind and quality part for not less than ninety days or for the same guarantee period as the original equipment manufacturer part, whichever is longer. The guarantee shall be provided by the insurer. (c) Like kind and quality parts, certified or approved by governmental or industry organizations, shall be utilized if available. [L 1997, c 251, pt of §2]

§431:10C-313.6
Original equipment manufacturer's and like kind and quality parts.
(a) An insurer shall make available a choice to the insured of authorizing a repair provider to utilize a like kind and quality part of an equal or better quality than the original equipment manufacturer part if such part is available or an original equipment manufacturer part for motor vehicle body repair work. If the insured or claimant chooses the use of an original equipment manufacturer part, the insured or claimant shall pay the additional cost of the original equipment manufacturer part that is in excess of the equivalent like kind and quality part, unless original equipment parts are required by the vehicle manufacturer's warranty.
(b) A like kind and quality part under subsection (a), of an equal or better quality than the original equipment manufacturer part, shall carry a guarantee in writing for the quality of the like kind and quality part for not less than ninety days or for the same guarantee period as the original equipment manufacturer part, whichever is longer. The guarantee shall be provided by the insurer.
(c) Like kind and quality parts, certified or approved by governmental or industry organizations, shall be utilized if available. [L 1997, c 251, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-314 Jurisdiction.

§431:10C-314 Jurisdiction.
Any person may bring suit for breach of any contractual obligation assumed by an insurer under a policy of insurance containing such mandatory or optional provisions in any state court of competent jurisdiction. [L 1987, c 347, pt of §2]
Case Notes
The first party to choose a forum for resolution of no-fault dispute binds the other party to that forum unless the circuit court finds that the parties have entered into a mandatory and binding arbitration agreement. 86 H. 59, 947 P.2d 371 (1997).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10G-301 Required motorcycle and motor scooter policy coverage.

§431:10G-301 Required motorcycle and motor scooter policy coverage.
(a) An insurance policy covering a motorcycle or motor scooter shall provide insurance in the following amounts to pay, on behalf of the owner or any operator of the insured motorcycle or motor scooter, sums that the owner or any operator may legally be obligated to pay for injury, death, or damage to the property of others, except property owned by, being transported by, or in charge of the insured that arise out of the ownership, operation, maintenance, or use of the motorcycle or motor scooter:
(1) Liability coverage of not less than $20,000 per person, with an aggregate limit of $40,000 per accident, for all damages arising out of accidental harm sustained as a result of any one accident; and
(2) Liability coverage of not less than $10,000 for all damages arising out of injury to or destruction of property, including motorcycles or motor scooters 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.
(b) At the option of the owner, each insurer shall:
(1) Offer medical payment coverage up to $10,000 to pay all reasonable expenses incurred within one year from the date of accident for necessary medical, surgical, dental, ambulance, hospital, professional, and nursing services;
(2) Offer an income disability plan; and
(3) Offer liability coverage in excess of the minimum coverages required by this section.
(c) Any operator or passenger of a motorcycle or motor scooter as defined in section 286-2 who receives injuries or dies in a motor vehicle accident may not claim personal injury protection benefits under a motor vehicle insurance policy, unless expressly provided for in the motor vehicle policy. [L 1989, c 208, pt of §1; am L 1994, c 128, §5; am L 1998, c 275, §34]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-401 Participation.

§431:10C-401 Participation.
(a) A joint underwriting plan is established consisting of all insurers authorized to write and engage in writing motor vehicle insurance in this State, except those insurers writing motor vehicle insurance exclusively under section 431:10C-106.
(b) Each insurer shall be a member of the plan and shall maintain membership as a condition of its licensure to transact such insurance in this State. [L 1987, c 347, pt of §2; am L 1989, c 195, §36]
Case Notes
Petitioner, who was assigned by the state insurance joint underwriting program bureau to respondent under the assigned claim procedure, was owed a duty of good faith by respondent given that: (1) under the assigned claims procedure, respondent owed the same rights and obligations to petitioner as respondent would owe to an insured to whom respondent had issued a motor vehicle mandatory public liability and property insurance policy; and (2) respondent's good faith covenant implied in motor vehicle policies applied to claimants under the assigned claim procedure irrespective of the absence of a written insurance policy. 129 H. 478, 304 P.3d 619 (2013).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-402 Bureau.

§431:10C-402 Bureau.
(a) The commissioner shall establish and maintain a joint underwriting plan bureau in the insurance division to receive, assign and supervise the servicing of all assigned claims and all applications for joint underwriting plan coverage.
(b) The commissioner shall adopt regulations for the operation of the bureau, the assignment of applications for joint underwriting plan coverage and assigned claims, and the inspection, supervision and maintenance of this service on a fair and equitable basis in accordance with this article. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-403 Bureau's duties.

§431:10C-403 Bureau's duties.
The bureau shall promptly assign each claim and application, and notify the claimant or applicant of the identity and address of the assignee of the claim or application. Claims and applications shall be assigned so as to minimize inconvenience to claimants and applicants. The assignee, thereafter, has rights and obligations as if it had issued motor vehicle mandatory public liability and property damage policies complying with this article applicable to the accidental harm or other damage, or, in the case of financial inability of a motor vehicle insurer or self-insurer to perform its obligations, as if the assignee had written the applicable motor vehicle insurance policy, undertaken the self-insurance, or lawfully obligated itself to pay motor vehicle insurance benefits. [L 1987, c 347, pt of §2; am L 1997, c 251, §50; am L 1998, c 275, §29]
Case Notes
Petitioner, who was assigned by the state insurance joint underwriting program bureau to respondent under the assigned claim procedure, was owed a duty of good faith by respondent given that: (1) under the assigned claims procedure, respondent owed the same rights and obligations to petitioner as respondent would owe to an insured to whom respondent had issued a motor vehicle mandatory public liability and property insurance policy; and (2) respondent's good faith covenant implied in motor vehicle policies applied to claimants under the assigned claim procedure irrespective of the absence of a written insurance policy. 129 H. 478, 304 P.3d 619 (2013).
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-404 Allocation of costs.

§431:10C-404 Allocation of costs.
All costs incurred in the operation of the joint underwriting plan bureau and the operation of the plan, including administrative, staff, consultative costs as provided in section 431:10C-215, and claims paid, other than assigned claims as provided in section 431:10C-408(d), shall be allocated fairly and equitably among the plan members. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-405 Board of governors.

§431:10C-405 Board of governors.
(a) The commissioner shall establish a board of governors within the bureau to provide expertise and consultation on all matters pertaining to the operation of the bureau and the joint underwriting plan. The commissioner shall appoint members to the board, which shall be composed of:
(1) Four persons from, and members or representatives of, nationally organized insurers or their domestic insurer affiliates;
(2) One person to represent insurance producers; and
(3) Two members selected by the commissioner or nominated by each of the classifications provided for in section 431:10C-407(b).
(b) The commissioner shall provide, after consultation with the board, in the budget of the bureau, funds sufficient to reimburse each member of the board for the actual costs of transportation, overnight housing, food, and other incidental costs of attending to the business and meetings of the board. Otherwise, the members shall serve without compensation.
(c) The board shall elect its chairperson and vice chairperson annually. The first meeting of the board shall be convened by the commissioner within sixty days of the effective date of this article. Thereafter, the board shall meet at its discretion but not less frequently than quarterly. [L 1987, c 347, pt of §2; gen ch 1993; am L 2003, c 212, §85; am L 2021, c 110, §12]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-406 Regulations, review, and appellate procedure.

§431:10C-406 Regulations, review, and appellate procedure.
(a) The commissioner shall adopt all necessary and appropriate rules for the execution of the commissioner's duties under this part as provided for in chapter 91.
(b) Any final ruling or disposition by the bureau, or by any assigned insurer or by a self-insurer, shall be appealed to the commissioner. Administrative review, and the regulations promulgated therefor by the commissioner, shall conform to chapter 91.
(c) Judicial review shall be available to any person aggrieved as provided in chapter 91.
(d) The provisions of all other parts of this article apply to the joint underwriting plan, whether direct reference is made or not, unless in conflict with the provisions of this part. [L 1987, c 347, pt of §2; am L 1998, c 275, §30]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10C-409 Establishment and criteria.

§431:10C-409 Establishment and criteria.
The commissioner shall, after consultation with the board, establish and promulgate the rating rules, classification standards and rules, rates, rating plans, territories, and policy forms for use in the provision of all motor vehicle insurance issued under the joint underwriting plan, in accordance with the following provisions:
(1) Rates shall not be excessive, inadequate or unfairly discriminatory.
(2) Consideration shall be given to the following:
(A) The plan's past and prospective loss experience within the State;
(B) Contingencies in the administration of motor vehicle insurance sold;
(C) Past and prospective expenses in the sale and administration of motor vehicle insurance;
(D) Income from investments of premiums and other proceeds received on account of joint underwriting plan motor vehicle insurance sold; and
(E) All other factors demonstrated to be relevant by a current actuarially sound study of the definable risks involved.
(3) The commissioner may:
(A) Establish rating territories and group risks by classifications for the establishing of rates and minimum premiums;
(B) Provide for, by regulation, a uniform classification of risks and rating territories for the various coverages;
(C) Modify classification rates to produce rates in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. Such standards may measure any differences among risks including vehicles, occupations, past traffic convictions, and involvement in past accidents, provided they are established to have a demonstrable effect upon losses or expense; and
(D) Ensure that no standard or rating plan shall be based, in whole or in part, directly or indirectly, upon a person's race, creed, ethnic extraction, age, sex, length of driving experience, credit bureau rating, marital status, or physical handicap. [L 1987, c 347, pt of §2; am L Sp 1993, c 4, §8]