Bill Text: HI HB1898 | 2022 | Regular Session | Introduced
Bill Title: Relating To Motor Vehicle Valuation.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2022-01-26 - Referred to TRN, CPC, referral sheet 2 [HB1898 Detail]
Download: Hawaii-2022-HB1898-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1898 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to MOTOR vehicle valuation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the methodology that insurance companies use to assign value to motor vehicles does not accurately reflect the value of electric vehicles. Mileage tends to be a primary factor in valuations, and many insurers do not include any assessment of an electric vehicle's primary battery, known as the traction battery pack, in their vehicle valuations. With electric vehicles, current battery capacity should have much more value than mileage. Because electric vehicles do not have a transmission, motor oil, or an internal combustion engine, including a head gasket or timing belt, wear and tear issues with electric vehicles revolve nearly entirely around battery condition. If an older electric vehicle has a new battery installed, that value should be considered when assessing insurance claims.
The legislature further finds that the comparable value of similar vehicles on other islands does not account for the price of shipping and traveling to view and test drive a vehicle on a different island.
The purpose of this Act is to update the criteria that insurance companies use to assign value to motor vehicles when examining or processing claims.
SECTION 2. Section 431:10C-310, Hawaii Revised Statutes, is amended to read as follows:
"§431:10C-310 Total loss motor vehicle claims: replacement. When an insurer elects under section 431:10C-309 to offer the insured a replacement vehicle as defined in section 431:10C-103, the insurer shall comply with the following requirements:
(1) The insurer shall
consider the following criteria when identifying a replacement vehicle:
(A) Availability
of the replacement vehicle on the same island as the total loss vehicle;
provided that if a replacement vehicle is not available on the same island as the
total loss vehicle, the insurer shall include in its offer the costs of shipping
the replacement vehicle and the insured's travel for pre-purchase inspection of
the replacement vehicle; and
(B) If the total loss vehicle is an electric vehicle, the remaining life and capacity of the vehicle's primary battery, known as the traction battery pack, which shall have equal or greater weight than mileage on the vehicle;
[(1)] (2) The claim file, which is maintained by
the insurer, shall contain a description of the replacement vehicle, including
the vehicle identification number and a schedule of options;
[(2)] (3) Replacement vehicles of the current
model plus the three previous model years shall be purchased through motor
vehicle dealers licensed under chapter 437.
This requirement may be waived in writing by the insured. The signed waiver shall be maintained in the
insurer's claim file;
[(3)] (4) If the insurer
offers a replacement vehicle to the insured and the insured rejects the offer
and elects a cash settlement instead of the replacement vehicle, the insurer
need pay only the amount it would have otherwise paid on the replacement
vehicle[.], including the costs of shipping the replacement vehicle and
the insured's travel for pre-purchase inspection of the replacement vehicle if the
replacement vehicle offered is not on the same island as the total loss vehicle. Evidence of the insured's rejection shall be
apparent in the file; and
[(4)] (5) If the insurer offers a replacement vehicle
to the insured and the insured rejects the offer and wants another vehicle substantially
similar in value, the insurer need pay only the amount it would have otherwise
paid on the replacement vehicle[.], including the costs of shipping the
replacement vehicle and the insured's travel for pre-purchase inspection of the
replacement vehicle if the replacement vehicle offered is not on the same island
as the total loss vehicle. The
insurer shall maintain in the claim file the insured's written waiver that the
acceptance of another vehicle is of the insured's own free will and choice."
SECTION 3. Section 431:10C-311, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) When an insurer elects under section 431:10C-309 to offer the insured a cash settlement for a total loss motor vehicle claim, the following shall apply:
(1) The cash
settlement shall be based upon the retail value of the motor vehicle as
determined from a source or sources which are reflective of the market value of
the total loss vehicle[.];
(2) The use of dealer quotations (when the vehicle is available at the quoting dealer's lot) and newspaper advertisements may be used in lieu of the source generally used by the insurer, if the claim file reflects that the vehicle was not quoted in the source generally used by the insurer or the source was not reflective of the market value. Dealer quotations and newspaper advertisements shall not be considered sole sources reflective of market values. When dealer quotations are used, the vehicle identification number shall be contained in the insured's claim file;
(3) Estimates from at
least three licensed dealers may be used when vehicles are not quoted in the
source usually used by the insurer and are not available for replacement. Dealer estimates shall take into
consideration the condition of the insured vehicle prior to the loss; [and]
(4) Regardless of the source
used to determine the market value of the total loss vehicle, the
value shall include the following:
(A) Availability
on the same island as the total loss vehicle; provided that if the
source is not for a vehicle on the same island as the total loss vehicle, the insurer
shall include the costs of shipping the vehicle and the insured's travel for pre-purchase
inspection of the vehicle in its cash settlement offer; and
(B) If the total loss vehicle is an electric vehicle, the remaining battery life and capacity of the vehicle's primary battery, known as the traction battery pack, which shall have equal or greater weight than mileage on the vehicle; and
[(4)] (5) The documentation of the determination
of the total loss vehicle market value shall be maintained in the insurer's
claim file."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Motor Vehicles; Electric Vehicles; Valuation; Motor Vehicle Insurance
Description:
When identifying a replacement vehicle or cash settlement value, requires an insurer to take into consideration costs of shipping the vehicle and the insured's travel for pre-purchase inspection of the replacement vehicle, if not on the same island, and, if the insured vehicle is an electric vehicle, the remaining battery life and capacity of the vehicle's primary battery, known as the traction battery pack, which shall have equal or greater weight than mileage on the vehicle.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
