(a) An insurer may not cancel or refuse to renew a motor vehicle insurance policy, including optional additional insurance under the requirements of § 431:10C-302, once issued except when:

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Terms Used In Hawaii Revised Statutes 431:10C-111

  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Insured: means :

    (1) The person identified by name as insured in a motor vehicle insurance policy complying with § 431:10C-301; and

    (2) A person residing in the same household with a named insured, specifically:

    (A) A spouse or reciprocal beneficiary or other relative of a named insured; and

    (B) A minor in the custody of a named insured or of a relative residing in the same household with a named insured. See Hawaii Revised Statutes 431:10C-103

  • Insurer: means every person holding a valid certificate of authority to engage in the business of making contracts of motor vehicle insurance in this State. See Hawaii Revised Statutes 431:10C-103
  • Motor vehicle: means any vehicle of a type required to be registered under chapter 286, including a trailer attached to such a vehicle, but not including motorcycles and motor scooters. See Hawaii Revised Statutes 431:10C-103
  • Motor vehicle insurance policy: means an insurance policy that meets the requirements of § 431:10C-301. See Hawaii Revised Statutes 431:10C-103
  • Person: means , when appropriate to the context, not only individuals, but corporations, firms, associations, and societies. See Hawaii Revised Statutes 431:10C-103
(1) The license of the principal operator to operate the type of motor vehicle is suspended or revoked;
(2) Premium payments for the policy are not made after reasonable demand therefor;
(3) The nonrenewal or conditional renewal is limited in accordance with section 431:10C-111.5; or
(4) A motor vehicle insurance policy has been in effect for sixty days or less and cancellation of the policy is not based on any of the criteria prohibited by subsection (c).
(b) An insurer may refuse to renew optional additional coverage in excess of that which the insurer is required to make available to the insured under § 431:10C-302 where the insured is a member of a class set forth in section 431:10C-407(b) (1) (A) or (B) at the time of the refusal to renew.
(c) No insurer shall refuse to continue a motor vehicle insurance policy based solely upon a person‘s race, creed, ethnic extraction, age, sex, length of driving experience, marital status, residence, physical handicap, or because an insured has elected to obtain any required or optional coverage or deductible required by law. If an insured alleges that the insurer’s refusal to continue the motor vehicle insurance policy is based solely upon the insured’s race, creed, ethnic extraction, age, sex, length of driving experience, marital status, residence, physical handicap, or because the insured has elected to obtain any required or optional coverage or deductible provided by law, the burden of proof shall rest with the insurer to prove that the refusal to continue the policy was not based on noncompliance with this subsection.
(d) An insurer may also refuse to renew motor vehicle insurance policies:

(1) If the commissioner determines that the financial soundness of the insurer would be impaired by the writing of additional policies of insurance; or
(2) The insurer ceases to write any new policies of insurance of any kind in this State.
(e) Within fifteen days of a cancellation and the return of the motor vehicle insurance identification card or a signed affidavit stating the card was lost or stolen, the insurer shall refund the pro rata unearned portion, if any, of any prepaid premiums. Premiums shall be considered “earned” as provided in section 431:10C-109.

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