§431:10C-301.5  Covered loss deductible.  Whenever
a person effects a recovery for bodily injury, whether by suit, arbitration, or
settlement, and it is determined that the person is entitled to recover
damages, the judgment, settlement, or award shall be reduced by $5,000 or the
amount of personal injury protection benefits incurred, whichever is greater,
up to the maximum limit.  The covered loss deductible shall not include
benefits paid or incurred under any optional additional coverage or benefits paid
under any public assistance program. [L 1997, c 251, pt of §2; am L 1998, c
275, §17; am L 2004, c 174, §2]



 



Case Notes



 



  The covered loss deductible provision of this section applied
to the insureds' recovery of bodily injury damages under their uninsured
motorist coverage with insurer.  103 H. 142, 80 P.3d 321.



  Where defendant failed to (1) raise the covered loss
deductible statute during the arbitration proceedings, (2) apply to the
arbitration administrator or the arbitration judge to reduce the awards, or (3)
file a notice of appeal and request a trial de novo, pursuant to Hawaii
Arbitration Rules rule 21, the arbitration awards were entered as unappealable
final judgments, which the trial court was precluded from modifying or
vacating.  105 H. 93, 94 P.3d 648.



  Applying the covered loss deductible under this section to
plaintiff's recovery of underinsured motorist benefits did not violate
plaintiff's constitutional right to substantive due process as the
legislature's policy determination to enact this section to reduce one of the
costs of the motor vehicle insurance system was expressly within the
constitutional purview of the legislature.  106 H. 511, 107 P.3d 440.



  The covered loss deductible applies to underinsured motorist
coverage.  106 H. 511, 107 P.3d 440.