§431:10C-302  Required optional additional
insurance.  (a)  In addition to the motor vehicle insurance coverages
described in section 431:10C-301, every insurer issuing a motor vehicle
insurance policy shall make available to the insured the following optional
insurance under the following conditions.  Every insurer issuing a commercial
motor vehicle insurance policy shall make available to the insured the
following 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 covering
loss resulting from damage to the insured's motor vehicle with such
deductibles, including but not limited to collision and comprehensive
deductibles of $50, $100, $250, $500, $1,000, $1,500, and $2,000, at
appropriately reduced premium rates, as the commissioner, by rule, shall
provide;



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



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



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



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



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



(A)  Are consistent with the required
provisions of the policy;



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



(C)  Are approved by the commissioner as fair
and 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 otherwise
payable; provided that if two or more insureds to whom the deductible is
applicable under the contract of insurance are injured in the same accident,
the aggregate amount of the deductible applicable to all of them shall not
exceed the specified deductible, which amount where necessary shall be
allocated equally among them;



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



(9)  (A)  An insurer may make available, and
provide at the option of the named insured, the benefits described in section
431:10C-103.5(a) through managed care providers such as a health maintenance
organization or a preferred provider organization.  The option may include
conditions and limitations to coverage, including deductibles and coinsurance
requirements, as approved by the commissioner.  The commissioner shall approve
those conditions and limitations which are substantially comparable to or
exceed the coverage provided under section 431:10C-103.6;



(B)  An insurer may make available, and provide
at the option of the named insured, deductible and coinsurance arrangements
whereby the recipient of care, treatment, services, products, expenses, or
accommodations shares in the payment obligation;



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



(D)  (i)  The optional coverage prescribed in
section 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 a
person who, at the time of the accident, is related by blood, marriage, or
adoption to the named insured or resident spouse and who resides in the named
insured's household, even if temporarily living elsewhere, and any ward or
foster child who usually resides with the named insured, even if living
elsewhere;



(E)  An agreement made under section
431:10C-302(a)(9) must be a voluntary agreement between the insured and the
insurer, and no insurer shall require an insured to agree to those policy
provisions as a condition of providing insurance coverage.  Requiring an
agreement as a precondition to the provision of insurance shall constitute an
unfair insurance practice and shall be subject to the provisions, remedies, and
penalties provided in article 13; and



(F)  An insurer providing the coverages
authorized in section 431:10C-302(a)(9)(A) and (B) shall demonstrate in rate
filings submitted to the commissioner the savings to the insured to be realized
under the plan;



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



(11)  An insurer may make available optional coverage for
chiropractic treatment in addition to chiropractic treatment provided under
section 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 Chiropractic
Association guidelines in effect on January 25, 1997.



The commissioner shall adopt rules, including
policy limits, terms, and conditions as necessary to implement the requirements
of this section.



(b)  In accordance with the rules adopted by
the commissioner, a policy of insurance described in this section shall contain
a provision specifying the periods within which claims may be filed and action
may 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 of
insurer because this section required insurer to offer death benefits coverage
for death arising out of all motor vehicle accidents, regardless of whether a
motorcycle was involved.  107 H. 227, 112 P.3d 713.



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



  Cited:  77 H. 39, 881 P.2d 526.