§431:10C-301.5  Covered loss deductible.  Whenevera person effects a recovery for bodily injury, whether by suit, arbitration, orsettlement, and it is determined that the person is entitled to recoverdamages, the judgment, settlement, or award shall be reduced by $5,000 or theamount of personal injury protection benefits incurred, whichever is greater,up to the maximum limit.  The covered loss deductible shall not includebenefits paid or incurred under any optional additional coverage or benefits paidunder any public assistance program. [L 1997, c 251, pt of §2; am L 1998, c275, §17; am L 2004, c 174, §2]

 

Case Notes

 

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

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

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

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