HOUSE OF REPRESENTATIVES

H.B. NO.

125

TWENTY-SEVENTH LEGISLATURE, 2013

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to named operator exclusion.

 

 

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

 


     SECTION 1.  The purpose of this Act is to establish a named operator exclusion in the Hawaii motor vehicle insurance code.

     SECTION 2.  Chapter 431:10C, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

     "§431:10C-    Exclusion of designated operator.  (a)  An insurer shall have the right to exclude, cancel, or refuse to renew coverage under a motor vehicle insurance policy as to a designated operator.  Any exclusion shall be acknowledged by the signature of all named insureds.  The signature of an excluded operator is not required; however when that signature is obtained it shall constitute prima facie proof the operator knew that the operator was excluded from coverage under the motor vehicle insurance policy.

     (b)  No person shall knowingly operate a motor vehicle that is insured by a policy from which the person is excluded from insurance coverage, unless the excluded operator is otherwise covered by an applicable motor vehicle insurance policy."

     SECTION 3.  Section 431:10C-103, Hawaii Revised Statutes, is amended by amending the definition of "insured" to read as follows:

     ""Insured" means:

     (1)  The person identified by name as insured in a motor vehicle insurance policy complying with section 431:10C-301; and

     (2)  A person residing in the same household with a named insured, specifically:

         (A)  A spouse or reciprocal beneficiary or other relative of a named insured; and

         (B)  A minor in the custody of a named insured or of a relative residing in the same household with a named insured.

     A person resides in the same household if the person usually makes the person's home in the same family unit, which may include reciprocal beneficiaries, even though the person temporarily lives elsewhere.

     Notwithstanding paragraph (2)(A) and (B) of the definition of "insured", "insured" shall not include operators who are named and excluded under a valid endorsement pursuant to section 431:10C-  ."

     SECTION 4.  Section 431:10C-408, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  Each person sustaining accidental harm, or such person's legal representative, may, except as provided in subsection (b), obtain the motor vehicle insurance benefits through the plan whenever:

     (1)  No liability or uninsured motorist insurance benefits under motor vehicle insurance policies are applicable to the accidental harm;

     (2)  No such insurance benefits applicable to the accidental harm can be identified; or

     (3)  The only identifiable insurance benefits under motor vehicle insurance policies applicable to the accidental harm will not be paid in full because of financial inability of one or more self-insurers or insurers to fulfill their obligations.

     Notwithstanding the foregoing, a named insured who has rejected in writing the offer of uninsured motorist coverage under a motor vehicle insurance policy, or who has knowingly allowed the operation of a motor vehicle by a person excluded as a designated operator under 431:10C-  , shall not be entitled to the rights of claim and action against the insurer, assigned under section 431:10C-403, with reference to the mandatory bodily injury liability policy for accidental harm.

     (b)  A person, or such person's legal representative, shall be disqualified from receiving benefits through the plan if:

     (1)  Such person is disqualified for criminal conduct under section 431:10C-305(d) from receiving the motor vehicle insurance benefits; or

     (2)  Such person was:

         (A)  The owner or registrant of the motor vehicle at the time of the motor vehicle's involvement in the accident out of which such person's accidental harm arose;

         (B)  The operator or any passenger of such a vehicle at such time with reason to believe that such vehicle was an uninsured motor vehicle[.]; or

         (C)  The operator of a motor vehicle from which the person was excluded from insurance coverage under section 431:10C-  , at the time of the motor vehicle's involvement in the accident out of which such excluded operator's accidental harm arose."

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Motor Vehicle Insurance; Named Operator Exclusion

 

Description:

Authorizes a named operator exclusion to enable a named insured to exclude specified persons from being covered under a motor vehicle insurance policy.  Provides that a named insured that has rejected in writing the offer of uninsured motorist coverage under a motor vehicle insurance policy, or who has knowingly allowed the operation of a motor vehicle by a person excluded as a designated operator, shall not be entitled to the rights of claim and action against the assigned insurer, with reference to the mandatory bodily injury liability policy for accidental harm.  Disqualifies the coverage to an excluded operator of a motor vehicle for an accident out of which the excluded operator's accidental harm arose.

 

 

 

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