HOUSE OF REPRESENTATIVES

H.B. NO.

2015

TWENTY-SEVENTH LEGISLATURE, 2014

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to insurance.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10C to be appropriately designated and to read as follows:

     "§431:10C-     Payment of general excise tax and certificate of ownership fee to claimants.  (a)  The insurer shall pay the applicable general excise tax and certificate of ownership fee, not to exceed policy limits, as follows:

     (1)  If a cash settlement is provided, and if within thirty days of the receipt of the settlement by the insurer, the claimant has purchased a vehicle, the insurer shall reimburse the claimant 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; and

     (2)  If the claimant 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 claimant 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 claimant for the taxes or fee.

     (c)  In lieu of the reimbursement procedure set forth in subsection (a), the insurer may pay the required amounts of general excise taxes and certificate of ownership fee directly to the claimant at the time of settlement.

     (d)  Written notice of the payment procedure set forth in this section shall be communicated to the claimant at the time of settlement, together with any form required by the insurer for applying for the reimbursement."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

General Excise Tax; Certificate of Ownership Fee; Insurance

 

Description:

Requires insurers to pay the general excise tax and certificate of ownership fee to claimants involving motor vehicle insurance.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.