HOUSE OF REPRESENTATIVES

H.B. NO.

639

THIRTY-SECOND LEGISLATURE, 2023

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to insurance.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Section 431:10C-801, Hawaii Revised Statutes, is amended as follows:

     1.  By amending the definitions of "car-sharing termination time" and "peer-to-peer car-sharing" to read:

     ""Car-sharing termination time" means the [latest] earliest of the following events:

     (1)  The expiration of the agreed upon period of time established for the use of a shared car according to the terms of the car-sharing program agreement if the shared car is delivered to the location agreed upon in the car-sharing program agreement;

     (2)  When the shared car is returned to a location as alternatively agreed upon by the shared car owner and shared car driver as communicated through a peer-to-peer car-sharing program[;], which alternatively agreed upon location shall be incorporated into the car-sharing program agreement; or

    [(3)  When a shared car is returned to the location agreed upon in the car-sharing program agreement or alternatively agreed upon by the shared car owner and the shared car driver, as communicated through a peer-to-peer car-sharing program, before the expiration of the period of time established for the use of a shared car according to the terms of the car-sharing program agreement, and the shared car driver notifies the peer-to-peer car-sharing program of the location of the shared car;

     (4)  When a shared car, during the car-sharing period, cannot safely or legally be operated and the shared car driver notifies the peer-to-peer car-sharing program that the shared car is inoperable and identifies the location of the shared car;

     (5)  When the shared car owner receives notice of a safety recall affecting the shared car and the shared car driver returns the shared car to the location agreed upon in the car-sharing program agreement, or alternatively agreed upon by the shared car owner and the shared car driver, and the shared car driver notifies the peer-to-peer car-sharing program of the location of the shared car; or

     (6)] (3)  When the shared car owner or the shared car owner's authorized designee takes possession and control of the shared car.

     "Peer-to-peer car-sharing" means the authorized operation, use, or control of a motor vehicle by an individual other than the motor vehicle's owner through a peer-to-peer car-sharing program.  "Peer-to-peer car-sharing", for the purposes of assessing a vehicle surcharge tax, does not mean the business of providing rental motor vehicles to the public as that phrase is used in section 251-3."

     2.  By amending the definitions of "peer-to-peer car-sharing program" and "shared car" to read:

     ""Peer-to-peer car-sharing program" means:

     (1)  Any person who enables a shared car driver to identify, reserve, or use a shared car owned by a shared car owner; or

     (2)  Any person who enables a shared car owner to describe, list, or make available a shared car for identification, reservation, or use by a shared car driver.

"Peer-to-peer car-sharing program" does not include:

     (1)  A transportation network company as defined in section 431:10C-701;

     (2)  A car-sharing organization as defined in section 251-1;

     (3)  Any person registered and acting as a travel agency pursuant to chapter 468L; [or]

     (4)  Any person registered and acting as an activity desk pursuant to chapter 468M[.]; or

     (5)  A lessor as defined in section 251-1 or 437D-3.

     "Shared car" means a motor vehicle that is registered pursuant to chapter 286 and is not owned; controlled; operated; maintained; or managed by or registered, directly or indirectly through an affiliate, to the peer-to-peer car-sharing program; and is available for sharing through a peer-to-peer car-sharing program.

     "Shared car" does not include [a]:

     (1)  A rental motor vehicle or vehicle as those terms are defined in section 437D-3[.]; or

     (2)  A rental or U-drive motor vehicle as defined in section 286-2."

     3.  By amending the definition of "shared car owner" to read:

     ""Shared car owner" means the registered owner of a shared car.  "Shared car owner" does not include a lessor as defined in section 251-1 or 437D-3."

     SECTION 2.  Section 431:10C-802, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§431:10C-802[]]  Insurance coverage during car-sharing period.  (a)  A peer-to-peer car-sharing program shall ensure that during each car-sharing period, the shared car shall be insured under a motor vehicle insurance policy that shall provide:

     (1)  Primary insurance coverage for each shared car available and used through a peer-to-peer car-sharing program for death, bodily injury, and property damage in amounts not less than [$750,000 for death, bodily injury, and property damage per accident, and costs of defense outside the limits;] the minimum amounts set forth in section 431:10C-301; and

     (2)  Primary insurance coverage for each shared car available and used through a peer-to-peer car-sharing program for personal injury protection coverage that meets the minimum coverage amounts required by section 431:10C-103.5[; and].

    [(3)  The following optional coverages,]

     (b)  The insurance described under subsection (a) may be satisfied by a motor vehicle insurance policy maintained by:

     (1)  A shared car owner;

     (2)  A shared car driver;

     (3)  A peer-to-peer car-sharing program; or

     (4)  Any combination of a shared car owner, shared car driver, and peer-to-peer car-sharing program.

     (c)  Insurers providing the motor vehicle insurance policies pursuant to this section shall offer the following optional coverages, which any named insured may elect to reject or purchase[, that provides primary coverage for each shared car available and used through a peer-to-peer car-sharing program]:

  [(A)]   (1)  Uninsured and underinsured motorist coverages as provided in section 431:10C-301, which shall be equal to the primary liability limits specified in this section; provided that uninsured and underinsured motorist coverage offers shall provide for written rejection of the coverages as provided in section 431:10C-301;

  [(B)]   (2)  Uninsured and underinsured motorist coverage stacking options as provided in section 431:10C-301; provided that the offer of the stacking options shall provide for written rejection as provided in section 431:10C-301;

  [(C)]   (3)  An offer of required optional additional insurance coverages as provided in section 431:10C-302; and

  [(D)]   (4)  In the event the only named insured under the motor vehicle insurance policy issued pursuant to this section is the peer-to-peer car-sharing program, the insurer or the peer-to-peer car-sharing program shall:

       [(i)]  (A)  Disclose the coverages in writing to the peer-to-peer car-sharing driver; and

      [(ii)]  (B)  Disclose to the peer-to-peer car-sharing driver in writing that all optional coverages available may not have been purchased under sections 431:10C-301 and 431:10C-302[; and

            (iii)  Obtain a written acknowledgement from the peer-to-peer car-sharing driver of receipt of the written disclosures required in paragraphs (1) and (2).  The standard disclosure forms used in paragraphs (1) and (2), and every modification of such forms intended to be used, shall be filed with the commissioner within fifteen days of providing such disclosure to the peer-to-peer car-sharing driver.  The insurer or the peer-to-peer car-sharing program shall also send to the peer-to-peer car-sharing driver every modified disclosure form within fifteen days of the filing of such modified disclosure form and comply with paragraph (3).  Such disclosures and acknowledgement may be sent and received by electronic means].

     [(b)] (d)  If insurance maintained by a shared car owner or shared car driver in accordance with subsection (a) has lapsed, contains an exclusion for peer-to-peer car-sharing, or does not provide the required coverage, insurance maintained by a peer-to-peer car-sharing program shall provide the coverage required by subsection (a) beginning with the first dollar of a claim and shall have the duty to defend the claim.

     [(c)] (e)  Coverage under a motor vehicle insurance policy maintained by the peer-to-peer car-sharing program shall not be dependent on another motor vehicle insurer first denying a claim."

     SECTION 3.  Act 56, Session Laws of Hawaii 2022, is amended by amending section 5 to read as follows:

     "SECTION 5.  This Act shall take effect on January 1, 2023[, and shall be repealed on June 30, 2025]."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 

 

 

Report Title:

Insurance; Peer-to-Peer Car-Sharing; Programs; Minimum Coverage; Shared Cars

 

Description:

Clarifies when the termination of peer-to-peer car-sharing occurs for purposes of motor vehicle insurance.  Clarifies the application of the peer-to-peer car-sharing insurance laws as to other entities that make available rental vehicles under state law.  Amends the minimum motor vehicle insurance coverage for shared cars to be consistent with the existing minimum coverage for personal vehicles.  Clarifies when the requirements for motor vehicle insurance coverage are satisfied.  Repeals the sunset of the peer-to-peer car-sharing insurance requirements.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.