Opinion ID: 1444018
Heading Depth: 2
Heading Rank: 1

Heading: General Principles and Statutory Requirements

Text: It is undisputed that PISC is a self-insurer. Hawai`i Revised Statutes (HRS) § 431:10C-103(19) provides that a [s]elf-insurer, with respect to any motor vehicle, means a person [1] who has satisfied the requirements of section 431:10C-105. HRS § 431:10C-105 (1987 Spec. Pamphlet) provides: Self-insurance. The motor vehicle insurance required by section 431:10C-104 [2] may be satisfied by any owner of a motor vehicle if: (1) Such owner provides a surety bond, proof of qualifications as a self-insurer, or other securities affording security substantially equivalent to that afforded under a no-fault policy, providing coverage at all times for the entire motor vehicle registration period, as determined and approved by the commissioner under regulations; and (2) The commissioner is satisfied that in case of injury, death or property damage, any claimant would have the same rights against such owner as the claimant would have had if a no-fault policy had been applicable to such vehicle. Therefore, as a self-insurer, PISC is statutorily obligated to afford security substantially equivalent to that afforded under a no-fault policy[.] Pursuant to HRS § 431:10C-103(12) (1993), no-fault policy is defined as an insurance policy which meets the requirements of section 431:10C-301. HRS § 431:10C-301 (1993) in turn provides in pertinent part: Required motor vehicle policy coverage. (a) In order to meet the requirements of a no-fault policy as provided in this article, an insurance policy covering a motor vehicle shall provide: (1) Coverage specified in section 431:10C-304; [3] and (2) Insurance to pay on behalf of the owner or any operator of the insured motor vehicle using the motor vehicle with the express or implied permission of the named insured, sums which the owner or operator may legally be obligated to pay for injury, death or damage to property of others, except property owned by, being transported by, or in the charge of the insured, which arise out of the ownership, operation, maintenance, or use of the motor vehicle[.] (b) A motor vehicle insurance policy shall include: (1) Liability coverage of not less than $35,000 for all damages arising out of accidental harm [4] sustained by any one person as a result of any one accident applicable to each person sustaining accidental harm arising out of ownership, maintenance, use, loading, or unloading of the insured vehicle; (2) Liability coverage of not less than $10,000 for all damages arising out of injury to or destruction of property including motor vehicles and including the loss of use thereof, but not including property owned by, being transported by, or in the charge of the insured, as a result of any one accident arising out of ownership, maintenance, use, loading or unloading, or [sic] the insured vehicle; (3) With respect to any motor vehicle registered or principally garaged in this State, liability coverage provided therein or supplemental thereto, in limits for bodily injury or death, set forth in section 287-7, under provisions filed with and approved by the commissioner, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom; provided, however, that the coverage required under this paragraph shall not be applicable where any named insured in the policy shall reject the coverage in writing. (4) Coverage for loss resulting from bodily injury or death suffered by any person legally entitled to recover damages from owners or operators of underinsured motor vehicles. An insurer may offer the underinsured motorist coverage required by this chapter in the same manner as uninsured motorist coverage; provided that the offer of both shall: (A) Be conspicuously displayed so as to be readily noticeable by the insured; (B) Set forth the premium for the coverage adjacent to the offer in a manner that the premium is clearly identifiable with the offer and may be easily subtracted from the total premium to determine the premium payment due in the event the insured elects not to purchase the option; and (C) Provide for written rejection of the coverage by requiring the insured to affix the insured's signature in a location adjacent to or directly below the offer. (Emphases added.)