§431:10C-302  Required optional additionalinsurance.  (a)  In addition to the motor vehicle insurance coveragesdescribed in section 431:10C-301, every insurer issuing a motor vehicleinsurance policy shall make available to the insured the following optionalinsurance under the following conditions.  Every insurer issuing a commercialmotor vehicle insurance policy shall make available to the insured thefollowing optional insurance, except for those benefits under paragraphs (4),(5), (9), (10), and (11) under the following conditions:

(1)  At the option of the insured, provisions coveringloss resulting from damage to the insured's motor vehicle with suchdeductibles, including but not limited to collision and comprehensivedeductibles of $50, $100, $250, $500, $1,000, $1,500, and $2,000, atappropriately reduced premium rates, as the commissioner, by rule, shallprovide;

(2)  At the option of the insured, compensation to theinsured, the insured's spouse, any dependents, or any occupants of the insured'svehicle for damages not covered by personal injury protection benefits;

(3)  Additional coverages and benefits with respect toany injury or any other loss from motor vehicle accidents or from operation ofa motor vehicle for which the insurer may provide for aggregate limits withrespect to such additional coverage so long as the basic liability coveragesprovided are not less than those required by section 431:10C-301(b)(1) and (2);

(4)  At the option of the insured, an option inwriting for coverage for wage loss benefits for monthly earnings loss forinjury arising out of a motor vehicle accident.  Any change in the wage lossbenefits coverage selected by an insured shall apply only to benefits arisingout of motor vehicle accidents occurring after the date the change becomeseffective.  Coverage shall be offered in multiples of $500 a month/$3,000 peraccident per person, from $500 a month/$3,000 per accident to $2,000 amonth/$12,000 per accident; however, nothing shall prevent an insurer frommaking available higher limits of coverage;

(5)  An option in writing for minimum coverage fordeath benefits for death arising out of a motor vehicle accident in an amountof $25,000, to be paid to the surviving spouse, for the benefit of the spouseand dependent children, or if there are no surviving spouse or dependentchildren, then to the estate.  Coverage shall also be made available forincreased death benefits in increments of $25,000 up to $100,000; however,nothing shall prevent an insurer from making available higher limits ofcoverage.  At the option of the insured, coverage for funeral expenses of$2,000 shall be made available;

(6)  Terms, conditions, exclusions, and deductibleclauses, coverages, and benefits which:

(A)  Are consistent with the requiredprovisions of the policy;

(B)  Limit the variety of coverage available soas to give buyers of insurance reasonable opportunity to compare the cost ofinsuring with various insurers; and

(C)  Are approved by the commissioner as fairand equitable;

(7)  At appropriately reduced premium rates,deductibles applicable only to claims of an insured in the amounts of $100,$300, $500, and $1,000 from all personal injury protection benefits otherwisepayable; provided that if two or more insureds to whom the deductible isapplicable under the contract of insurance are injured in the same accident,the aggregate amount of the deductible applicable to all of them shall notexceed the specified deductible, which amount where necessary shall beallocated equally among them;

(8)  Every insurer shall fully disclose theavailability of all required and optional coverages and deductibles, includingthe nature and amounts, at the issuance or delivery of the policy; or, for apolicy already issued on January 1, 1998, disclosure shall be made at the firstrenewal after January 1, 1998.  The insurer shall also disclose at issuance orrenewal, as applicable, the effect on premium rates and savings of each optionand deductible.  Further offers or disclosures thereafter shall be required tobe included with every other renewal or replacement policy.  All elections ofcoverages, options, and deductibles by a named insured shall be binding uponadditional insureds covered under the named insured's policy.  The purpose ofthis paragraph is to inform insureds or prospective insureds of the coveragesunder this article;

(9)  (A)  An insurer may make available, andprovide at the option of the named insured, the benefits described in section431:10C-103.5(a) through managed care providers such as a health maintenanceorganization or a preferred provider organization.  The option may includeconditions and limitations to coverage, including deductibles and coinsurancerequirements, as approved by the commissioner.  The commissioner shall approvethose conditions and limitations which are substantially comparable to orexceed the coverage provided under section 431:10C-103.6;

(B)  An insurer may make available, and provideat the option of the named insured, deductible and coinsurance arrangementswhereby the recipient of care, treatment, services, products, expenses, oraccommodations shares in the payment obligation;

(C)  No deductible or coinsurance under apolicy covered under section 431:10C-302(a)(9)(A) or (B) shall be applied withrespect to care, treatment, services, products, or accommodation provided orexpenses incurred by an insured during the first twenty-four hours in whichemergency treatment has been provided or until the insured patient's emergencymedical condition is stabilized, whichever is longer;

(D)  (i)  The optional coverage prescribed insection 431:10C-302(a)(9)(A) and (B) shall apply only to the named insured,resident spouse, or resident relative; and

(ii)  "Resident relative" means aperson who, at the time of the accident, is related by blood, marriage, oradoption to the named insured or resident spouse and who resides in the namedinsured's household, even if temporarily living elsewhere, and any ward orfoster child who usually resides with the named insured, even if livingelsewhere;

(E)  An agreement made under section431:10C-302(a)(9) must be a voluntary agreement between the insured and theinsurer, and no insurer shall require an insured to agree to those policyprovisions as a condition of providing insurance coverage.  Requiring anagreement as a precondition to the provision of insurance shall constitute anunfair insurance practice and shall be subject to the provisions, remedies, andpenalties provided in article 13; and

(F)  An insurer providing the coveragesauthorized in section 431:10C-302(a)(9)(A) and (B) shall demonstrate in ratefilings submitted to the commissioner the savings to the insured to be realizedunder the plan;

(10)  An insurer shall make available optional coveragefor naturopathic, acupuncture, nonmedical remedial care, and treatment renderedin accordance with the teachings, faith, or belief of any group which reliesupon spiritual means through prayer for healing; and

(11)  An insurer may make available optional coverage forchiropractic treatment in addition to chiropractic treatment provided undersection 431:10C-103.6 for not more than the lesser of the following:

(A)  Thirty additional visits at no more than$75 a visit; or

(B)  Treatment as defined by the Hawaii ChiropracticAssociation guidelines in effect on January 25, 1997.

The commissioner shall adopt rules, includingpolicy limits, terms, and conditions as necessary to implement the requirementsof this section.

(b)  In accordance with the rules adopted bythe commissioner, a policy of insurance described in this section shall containa provision specifying the periods within which claims may be filed and actionmay be brought against the insurer. [L 1987, c 347, pt of §2; am L 1988, c 306,§2; am L 1992, c 124, §10; am L 1997, c 251, §39; am L 1998, c 275, §18]

 

Case Notes

 

  Trial court erred in granting summary judgment in favor ofinsurer because this section required insurer to offer death benefits coveragefor death arising out of all motor vehicle accidents, regardless of whether amotorcycle was involved.  107 H. 227, 112 P.3d 713.

  Inter-policy stacking of applicable wage loss coverages mustbe permitted for each covered accident; insurer's "non-duplication ofbenefits" clause, which purported to limit wage loss benefits of insurer'stwo policies, was invalid to the extent that it impaired coverage of actualwage loss.  103 H. 181 (App.), 80 P.3d 1002.

  Cited:  77 H. 39, 881 P.2d 526.