Bill Text: HI SB58 | 2010 | Regular Session | Introduced
Bill Title: Motor Vehicle Insurance
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB58 Detail]
Download: Hawaii-2010-SB58-Introduced.html
Report Title:
Motor Vehicle Insurance
Description:
Creates a driver exclusion endorsement to enable a named insured to exclude specified persons from being covered under a policy.
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THE SENATE |
S.B. NO. |
58 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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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:
SECTION 1. The legislature finds that broad motor vehicle insurance coverage is generally consistent with public policy. The Hawaii supreme court has construed Hawaii law to the effect that a relative of a named insured, even if temporarily absent and living elsewhere, is nevertheless a resident of the named insured's household and therefore is covered under the named insured's policy. See Mikelson v. United Services Automobile Ass'n, 107 Hawai'i 192, 111 P.3d 601 (2005). This broad interpretation of coverage may from time to time result in severe hardship to certain consumers. In this regard, an insured with a good driving record may be unable to find affordable insurance coverage, if the insured resides with a relative who has an extensive history of serious moving violations or costly insurance claims.
A named driver exclusion would enable insurers to provide coverage at reasonable rates to applicants with good driving records, and to offer coverage to drivers with extensive negative history at premiums more reflective of the risk.
The purpose of this Act is to establish a named driver 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 persons. (a) An insurance policy covering a motor vehicle may exclude from coverage any person specifically designated as excluded by the named insured. Any exclusion shall be acknowledged between an insurer and the named insured, by the signature of the named insured on a written endorsement. The endorsement shall be effective for each renewal of the policy and shall remain in effect until the insurer and named insured agree in writing to provide coverage for the person who was excluded from coverage or the endorsement is removed from the policy.
(b) The endorsement to exclude coverage under subsection (a) shall be substantially similar to the following form:
"DRIVER EXCLUSION ENDORSEMENT
Nothing herein contained shall alter, vary, waive, or extend any of the terms, conditions, agreements, or limits of the under-mentioned policy other than as stated herein below. Effective 12:01 a.m., Standard Time. Attached hereto and forming part of Policy No. issued to (name of insured) by (name of insurance company). In consideration of the premium for which the policy is written, it is agreed that the company shall not be liable, and no liability or obligation of any kind shall be attached to the company, for losses, injuries, or damages sustained after the effective date of this endorsement while any motor vehicle is operated or used by (insert name of excluded driver(s)).
Date:
(signature of named insured)"
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 paragraphs (2)(A) and (2)(B), "insured" shall not include persons who are named and excluded under a valid endorsement pursuant to section 431:10C- ."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.
SECTION 5. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2009.
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INTRODUCED BY: |
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