Bill Text: HI SB124 | 2011 | Regular Session | Amended

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Bill Title: Motor Vehicle Insurance; Cancellation

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2011-04-25 - (S) Act 011, 4/25/2011 (Gov. Msg. No. 1111). [SB124 Detail]

Download: Hawaii-2011-SB124-Amended.html

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THE SENATE	S.B. NO.	124
TWENTY-SIXTH LEGISLATURE, 2011		S.D. 1
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‑    Replacing motor vehicle insurance policy through an insurer's affiliate or subsidiary.  An insurer shall be exempt from provisions governing policy cancellations or nonrenewals in sections 431:10C-111, 431:10C-111.5, and 431:10C‑112 if:

     (1)  The insurer offers to replace the insured's policy through the insurer's affiliate or subsidiary;

     (2)  The replacement policy is effective upon the expiration of the existing policy;

     (3)  The replacement policy provides the same or better coverage, terms, and conditions as the existing policy at a lower premium than the existing policy;

     (4)  The insurer provides at least thirty days written notice of the prospective replacement to the insured; provided that the insured may waive notice pursuant to this paragraph; and

     (5)  The insured accepts the replacement policy."

     SECTION 2.  New statutory material is underscored.

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

 

 

Report Title:

Motor Vehicle Insurance; Cancellation

 

Description:

Exempts an insurer from prohibitions on cancellation or nonrenewal of a motor vehicle insurance policy; provided that the insurer offers a replacement policy that offers the same or better coverage, terms, or conditions at a lower price through an affiliate or subsidiary.  (SD1)

 

 

 

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