REPORT TITLE:
Motor Vehicle Insurance


DESCRIPTION:
Specifies that no cause of action in tort lies against insured
motorists if the injured person was uninsured, unless the
injuries resulted in death or serious injury.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.1258       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR VEHICLE INSURANCE.



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

 1      SECTION 1.  Section 431:10C-306, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "431:10C-306  Abolition of tort liability.(a)  Except as
 
 4 provided in subsection (b), this article abolishes tort liability
 
 5 of the following persons with respect to accidental harm arising
 
 6 from motor vehicle accidents occurring in this State:
 
 7      (1)  Owner, operator, or user of an insured motor vehicle;
 
 8           or
 
 9      (2)  Operator or user of an uninsured motor vehicle who
 
10           operates or uses such vehicle without reason to believe
 
11           it to be an uninsured motor vehicle.
 
12      (b)  Tort liability is not abolished as to the following
 
13 persons, their personal representatives, or their legal guardians
 
14 in the following circumstances:
 
15      (1)  Death occurs to the person in such a motor vehicle
 
16           accident;
 
17      (2)  Injury occurs to the person which consists, in whole or
 
18           in part, in a significant permanent loss of use of a
 
19           part or function of the body;
 

 
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 1      (3)  Injury occurs to the person which consists of a
 
 2           permanent and serious disfigurement which results in
 
 3           subjection of the injured person to mental or emotional
 
 4           suffering; or
 
 5      (4)  Injury occurs to the person in a motor vehicle accident
 
 6           and as a result of such injury that the personal injury
 
 7           protection benefits incurred by such person equal or
 
 8           exceed $5,000; provided that in calculating this
 
 9           amount:
 
10           (A)  The following shall be included:
 
11                (i)  Personal injury protection benefits incurred
 
12                     by, paid to or payable to, or on behalf of,
 
13                     an eligible injured person including amounts
 
14                     paid directly by or on behalf of the eligible
 
15                     insured because of the accidental harm or
 
16                     similar benefits under social security,
 
17                     worker's compensation, or public assistance
 
18                     laws;
 
19               (ii)  The applicable amounts of deductible or
 
20                     copayment paid or incurred;
 
21              (iii)  Amounts paid by or on behalf of an injured
 
22                     person who is not entitled to personal injury
 
23                     protection benefits, by health insurance or
 

 
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 1                     other funds; provided that payment in excess
 
 2                     of the charges or services allowable under
 
 3                     this chapter shall not be included;
 
 4               (iv)  Where an eligible injured person receives
 
 5                     coverage on other than a fee for service
 
 6                     basis including, but not limited to, a health
 
 7                     maintenance organization operating on a
 
 8                     capitation basis, the value of services
 
 9                     provided shall be determined in accordance
 
10                     with the fee schedules allowable under this
 
11                     chapter for purposes of threshold
 
12                     determination;
 
13           (B)  When a person has optional coverage, benefits
 
14                received in excess of the maximum basic personal
 
15                injury protection limits set forth in section
 
16                431:10C-103.5 shall not be included.
 
17      (c)  Subsections (a) and (b) shall apply whether or not the
 
18 injured person is entitled to receive personal injury protection
 
19 benefits.  The party against whom the presumption under this
 
20 section is directed shall have the burden of proof to rebut the
 
21 presumption.
 
22      (d)  No claim may be made for benefits under the uninsured
 
23 motorist coverage by an injured person against an insurer who has
 

 
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 1 paid or is liable to pay motor vehicle insurance benefits to the
 
 2 injured person unless the claim meets the requirements of this
 
 3 article.
 
 4      (e)  Except as provided in subsection (b), no person injured
 
 5 in an accident shall have any action to recover any personal
 
 6 injury protection benefits or damages arising out of the
 
 7 operation or use of any motor vehicle involved in the accident,
 
 8 if at the time of the accident the person was operating a vehicle
 
 9 in violation of section 431:10C-104.  No insurer of any vehicle
 
10 involved in the accident shall be liable under a policy of
 
11 liability insurance, uninsured motorist insurance, or personal
 
12 injury protection benefits insurance, to pay any benefits or
 
13 damages to the person operating a vehicle in violation of section
 
14 431:10C-104.
 
15      [(e)] (f)  No provision of this article shall be construed
 
16 to exonerate, or in any manner to limit:
 
17      (1)  The liability of any person in the business of
 
18           manufacturing, retailing, repairing, servicing, or
 
19           otherwise maintaining motor vehicles, arising from a
 
20           defect in a motor vehicle caused, or not corrected, by
 
21           an act or omission in the manufacturing, retailing,
 
22           repairing, servicing, or other maintenance of a vehicle
 
23           in the course of such person's business;
 

 
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 1      (2)  The criminal or civil liability, including special and
 
 2           general damages, of any person who, in the maintenance,
 
 3           operation, or use of any motor vehicle:
 
 4           (A)  Intentionally causes injury or damage to a person
 
 5                or property;
 
 6           (B)  Engages in criminal conduct which causes injury or
 
 7                damage to person or property;
 
 8           (C)  Engages in conduct resulting in punitive or
 
 9                exemplary damages; or
 
10           (D)  Causes death or injury to another person in
 
11                connection with the accident while operating the
 
12                vehicle in violation of section 291-4 or 291-7.
 
13      [(f)] (g)  No provision of this section shall be construed
 
14 to abolish tort liability with respect to property damage arising
 
15 from motor vehicle accidents."
 
16      SECTION 2.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 3.  This Act shall take effect upon its approval.
 
19 
 
20                              INTRODUCED BY:______________________