Bill Text: HI SB142 | 2025 | Regular Session | Introduced
Bill Title: Relating To Insurance.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (N/A) 2025-01-10 - Pending Introduction. [SB142 Detail]
Download: Hawaii-2025-SB142-Introduced.html
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THE SENATE |
S.B. NO. |
142 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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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 10, part II, to be appropriately designated and to
read as follows:
"§431:10- Payment of proceeds or claims by mail;
lost,
destroyed,
or stolen checks; remedies. (a)
Whenever a
policy allows and the insurer chooses to pay the proceeds of or a claim under
the policy by issuing a check, the check shall be delivered by way of United States certified mail, restricted
delivery, postage prepaid, return receipt requested, to the last known address
of the insured or designated beneficiary.
(b) The insurer
who chooses to pay the proceeds of or a claim under the policy pursuant to
subsection (a) shall not be relieved of its obligation to pay the proceeds or
claim until it receives a sworn affidavit from the insured or designated beneficiary
confirming receipt of the check.
(c) If a check
delivered pursuant to subsection (a) is lost, destroyed, or stolen, the insured
or designated beneficiary
may
submit a written request to the insurer to reissue the check; provided that:
(1) The insured or designated beneficiary is the payee of the
check; and
(2) The request contains or is accompanied by a sworn declaration
under penalty of perjury that insured or designated beneficiary cannot
reasonably obtain possession of the check because the check was destroyed, its
whereabouts cannot be determined, or it is in the wrongful possession of an
unknown person or a person that cannot be found or is not amenable to service
of process.
(d) If a request
for reissuance of a check is submitted in accordance with subsection (c),
the insurer
shall reissue and deliver the
check
pursuant to subsection (a); provided that if the insurer incurred losses as a result of reissuing
the check, the insurer may assert a claim to the amount of the check by a
communication to the obligated bank pursuant section 490:3-312.
(e) For the purposes of this section, "check"
means a cashier's check, teller's
check, or certified
check."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Insurance Contracts; Payment of Proceeds and Claims by Mail; Lost, Destroyed, or Stolen Checks; Remedies
Description:
Requires insurers who choose to pay the proceeds of or a claim under an insurance policy by issuing a check to deliver the check by certified mail, restricted delivery, postage prepaid, return receipt requested, to the last known address of the person designated in the policy as being entitled to the insured or designated beneficiary. Establishes that insurers who choose to pay the proceeds of or a claim under an insurance policy by issuing a check shall not be relieved of their obligation to pay the proceeds or claim until they receive a sworn affidavit from the insured or designated beneficiary confirming receipt of the check. Establishes remedies for claimants if a check is lost, destroyed, or stolen; and for insurers if they incur losses due to reissuing the check.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
