Opinion ID: 2611817
Heading Depth: 2
Heading Rank: 1

Heading: The UIM Statute

Text: Our review of the language and the legislative history of the UIM statute does not reveal an express intent by the legislature to require, or ban, stacking of UIM benefits. [3] Rather, the legislature explicitly left the issue of stacking to the judiciary, stating: Judicial decisions on stacking of benefits are not affected by this bill, and it is your Committee's intent to leave the issue of stacking to judicial determination. Sen. Conf. Comm. Rep. No. 215, in 1988 Senate Journal, at 675. In accepting this task, we look to the legislative evolution of UIM insurance for guidance. In 1985, the UM statute, HRS § 431-448 (1985) (originally enacted in 1965), was amended to include UIM coverage. The underscored language below reflects the amendments to HRS § 431-448: Automobile liability; coverage for damage by uninsured or underinsured motor vehicle. (a) No automobile liability or motor vehicle liability policy insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance, or use of a motor vehicle, shall be delivered, issued for delivery, or renewed in this State, with respect to any motor vehicle registered or principally garaged in this State, unless coverage is provided therein or supplemental thereto, in limits for bodily injury or death set forth in section 287-7,[ [4] ] under provisions filed with and approved by the insurance 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 section shall not [be applicable] apply where any insured named in the policy shall reject the coverage in writing. (b) Each insurer shall offer to each policyholder or applicant for a motor vehicle liability policy optional additional insurance 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. (c) The term underinsured motor vehicle, as used in this section, means a motor vehicle with respect to the ownership, maintenance, or use of which the sum of the limits of liability of all bodily injury liability insurance coverage applicable at the time of loss to which coverage afforded by such policy or policies applies is less than the liability for damages imposed by law. A motor vehicle shall also be deemed uninsured within the meaning of this section if, after the occurrence of a loss described in this section, the owner or operator thereof is unknown. HRS § 431-448 (1985) (emphasis added) [hereinafter, the 1985 amendment]. In 1987, the legislature recodified and amended the UM statute as HRS § 431:10C-301, which provided: 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; 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 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, of the insured vehicle; and (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 section shall not be applicable where any insured named in the policy shall reject the coverage in writing. HRS § 431:10C-301 (Spec.Pamphlet 1987). HRS § 431:10C-301(b) was then amended in 1988, adding the following UIM provision, which is applicable to the present case: (4) Coverage for loss resulting from bodily injury or death suffered by any person legally entitled to recover damages from owners or operators of underinsured motor vehicles. An insurer may offer the underinsured motorist coverage required by this paragraph in the same manner as uninsured motorist coverage; provided that such 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 such 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. HRS § 431:10C-301(b)(4) (Supp.1991) [5] [hereinafter, the 1988 amendment]. The legislative history of the 1988 amendment indicates that UM and UIM shared the same purpose, that is, to require insurers to offer coverage for underinsured motor vehicles in motor vehicle insurance policies. Hse. Stand. Comm. Rep. No. 1150-88, in 1988 House Journal, at 1248. The legislature specifically intended that UM and UIM be treated alike: Under this bill, [UIM] coverage would be treated in the same manner that [UM] coverage is presently treated, i.e. as a means of protection, through voluntary insurance, for persons who are injured by motorists whose liability policies are inadequate to pay for personal injuries. Sen. Conf. Comm. Rep. No. 215, in 1988 Senate Journal, at 675 (emphasis added); see also Hse. Stand. Comm. Rep. No. 1150-88, in 1988 House Journal, at 1248 and Hse. Stand. Comm. Rep. No. 126-88, in 1988 House Journal, at 826. In light of the legislature's express intent that UIM coverage be treated in the same manner as UM coverage, we deem it pertinent to examine the treatment of stacking of UM benefits in this jurisdiction.