RELATING TO MOPED INSURANCE.

HB220

HOUSE OF REPRESENTATIVES

H.B. NO.

220

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to moped insurance
.

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

����
SECTION
1.
�
The purpose of this Act is to require
that persons operating mopeds in the State carry an insurance policy.

����
SECTION
2.
�
Chapter 431, Article 10G, Hawaii Revised
Statutes, is amended by amending its title to read as follows:

"
ARTICLE 10G

MOPED,

MOTORCYCLE
,
AND
MOTOR SCOOTER INSURANCE
"

����
SECTION
3
.
�
Section 431:10G-101, Hawaii Revised Statutes,
is amended as follows:

����
1.
�
By adding two new definitions to be
appropriately inserted and to read:

����
"
"Moped"
has the same meaning as defined in section 286-2.

����
"Moped
accident" means an accident arising out of the operation, maintenance, or
use of a moped, but not involving a motor vehicle.
"

����
2.
�
By amending the definition of
"accidental harm" to read:

����
""Accidental
harm" means bodily injury, death, sickness, or disease caused by a
moped
accident,
motorcycle
accident,
or motor scooter accident to a
person."

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

����
""Owner"
means a person who holds the legal title to a
moped,
motorcycle
,

or motor scooter; except that when a
moped,
motorcycle
,
or motor
scooter is the subject of a security agreement or lease with a term of not less
than one year, with the debtor or lessee having the right of possession, [
the
term owner
]
"owner"
shall mean the debtor or lessee.
�
Whenever transfer of title to a
moped,

motorcycle
,
or motor scooter occurs, the seller shall be considered the
owner until delivery of the executed title to the buyer.
�
Upon delivery of the executed title, the
buyer holding the equitable title shall be considered the owner."

����
SECTION
4
.
�
Section 431:10G-102, Hawaii Revised Statutes,
is amended to read as follows:

����
"
�431:10G-102
�
Conditions of operation and registration of
mopeds,

motorcycles
,
and motor scooters.
�

No person shall drive a
moped,
motorcycle
,
or motor
scooter upon any public street, road, or highway of this State at any time
unless [
such
]
the moped,
motorcycle
,
or motor scooter is
insured at all times under a liability policy as provided in section
431:10G-301; provided that this article shall not apply to any [
antique
]
motorcycle or motor scooter
that is an antique motor vehicle
as defined
in section 249-1."

����
SECTION
5.
�
Section 431:10G-103, Hawaii Revised Statutes,
is amended to read as follows:

����
"
�431:10G-103
�
[
Motorcycle
]
Moped, motorcycle,

or motor scooter self-insurance.
�
The

moped,
motorcycle
,
or motor scooter insurance required by section
431:10G-102 may be satisfied by any owner of a
moped,
motorcycle
,

or motor scooter if:

����
(1)
�
[
Such
]
The
owner provides proof
of qualifications as a self-insurer, and a surety bond or other securities
affording security substantially equivalent to that afforded under a policy
meeting the requirements of section 431:10G-301 and providing coverage at all
times for the entire
moped,
motorcycle
,
or motor scooter
registration period, as determined and approved by the commissioner under
rules; and

����
(2)
�
The commissioner is satisfied that in case of
injury, death, or property damage, any claimant would have the same rights against
[
such
]
the
owner as the claimant would have had if a policy
meeting the requirements of section 431:10G-301 had been applicable to [
such
]

the moped,
motorcycle
,
or motor scooter."

����
SECTION
6
.
�
Section 431:10G-104, Hawaii Revised Statutes,
is amended by amending subsection (a) to read as follows:

����
"(a)
�
Any person seeking to obtain the liability
coverage required by this part after June 7, 1989, shall first:

����
(1)
�
Have obtained a valid
moped,
motorcycle
,

or motor scooter license; or

����
(2)
�
Have obtained a valid
moped,
motorcycle
,

or motor scooter learner's permit and
, for a person operating a motorcycle
or motor scooter,
have taken and passed a motorcycle education course
approved by the department of transportation."

����
SECTION
7
.
�
Section 431:10G-105, Hawaii Revised Statutes,
is amended to read as follows:

����
"
�431:10G-105
�
Tort liability.
�
(a)
�

With respect to accidental harm incurred in or arising out of a
moped
accident,
motorcycle accident
,
or motor scooter accident, tort
liability is not abolished.

����
(b)
�
Any owner or operator of a
moped,

motorcycle
,
or motor scooter involved in a motor vehicle accident as
defined in section 431:10C-103 and who incurs accidental harm as defined in
section 431:10C-103, including [
such
] the person's representative or
legal guardian, shall have a cause of action in tort as provided in section
431:10C-306."

����
SECTION
8
.
�
Section 431:10G-106, Hawaii Revised Statutes,
is amended to read as follows:

����
"
�431:10G-106
�
Verification of insurance.
�
Every insurer shall issue to each of its
insureds a paper or electronic proof of insurance card for each
moped,
motorcycle
,

or motor scooter for which a liability policy under this article is
written.
�
The electronic proof of
insurance card may be accessed directly through the licensed insurer's website,
application, or database.
�
The proof of
insurance card shall show the following:

����
(1)
�
Name, make, year, and factory or serial number
of the
moped,
motorcycle
,
or motor scooter; provided that
insurers of five or more
mopeds,
motorcycles
,
or motor scooters
that are under common registered ownership and used in the regular course of
business shall not be required to indicate the name, make, year, and the
factory or serial number of each
moped,
motorcycle
,
or motor
scooter;

����
(2)
�
Policy number;

����
(3)
�
Names of the insured and the insurer; and

����
(4)
�
Effective dates of coverage including the
expiration date.

The proof of insurance card shall be carried on, or
accessible on a mobile electronic device, as defined in section 291C-137, by
the person operating the insured
moped,
motorcycle
,
or motor
scooter at all times and shall be exhibited to a law enforcement officer upon
demand."

����
SECTION
9
.
�
Section 431:10G-108, Hawaii Revised Statutes,
is amended to read as follows:

����
"
�431:10G-108
�
Penalties.
�
Any person who violates this article shall be
subject to a citation by the police and shall be subject to a nonsuspendable
fine of [
not
] no less than $100 [
nor
]
and no
more than
$1,000, thirty days imprisonment, a one year driver's license suspension, or
any combination thereof, for each violation.

����
Any person
cited under this section shall have an opportunity to present a good faith
defense, including but not limited to lack of knowledge or proof of
insurance.
�
The general penalty provision
of this section shall not apply to:

����
(1)
�
Any operator of a
moped,
motorcycle
,

or motor scooter owned by another person if the operator's own insurance covers
such driving;

����
(2)
�
Any operator of a
moped,
motorcycle
,

or motor scooter owned by that person's employer during the normal scope of
that person's employment; or

����
(3)
�
Any operator of a borrowed
moped,
motorcycle
,

or motor scooter if the operator holds a reasonable belief that the subject
vehicle is insured."

����
SECTION
10
.
�
Section 431:10G-201, Hawaii Revised Statutes,
is amended by amending its title and subsection (a) to read as follows:

����
"
�431:10G-201
�
Making of
moped,
motorcycle
,

and motor scooter insurance rates.
�

(a)
�
All premium rates for
moped,

motorcycle
,
and motor scooter insurance shall be made in accordance with
the following provisions:

����
(1)
�
Rates shall not be excessive, inadequate, or
unfairly discriminatory;

����
(2)
�
Due consideration shall be given to:

���������
(A)
�
Past and prospective loss experience within
and outside this State, catastrophe hazards, if any, reasonable margin for
profit, and contingencies, dividends, savings, or unabsorbed premium deposits
allowed or returned by insurers to their policyholders, members
,
or
subscribers;

���������
(B)
�
Past and prospective expenses both
country-wide and those specially applicable to this State in the sale and
administration of
moped,
[
motorcycles
]
motorcycle,
and
motor [
scooters
]
scooter
insurance; and

���������
(C)
�
Investment income from reserves, unearned
insurance premiums, and other unearned proceeds received on account of
moped,

motorcycle
,
and motor scooter insurance sold, and all other factors that
may be deemed relevant, if they are established to have a probable effect upon
losses, expense, or rates, [
such as
]
including
but not limited to
types of vehicles, occupations, and involvement in past accidents;

����
(3)
�
The systems of expense provisions included in
the rates for use by any insurer or group of insurers may differ from those of
other insurers or groups of insurers to reflect the requirements of the
operating methods of any insurer or group with respect to any class of
insurance, or with respect to any subdivision or combination thereof for which
subdivision or combination separate expense provisions are applicable; and

����
(4)
�
Risks may be grouped by classifications for
the establishing of rates and minimum premiums.
�

Classification rates may be modified to produce rates for individual
risks in accordance with rating plans which establish standards for measuring
variations in hazards or expense provisions, or both.
�
The standards may measure any differences
among risks that can be demonstrated to have a probable effect upon losses or
expenses."

����
SECTION
11
.
�
Section 431:10G-202, Hawaii Revised Statutes,
is amended by amending subsection (a) to read as follows:

����
"(a)
�
Every insurer shall file with the
commissioner every manual of classification, rule, rate, rating plan,
designation of rating territories, or standard for
moped,
motorcycle
,

or motor scooter insurance which it proposes to use.
�
Every filing shall state the proposed
effective date of the filing and the character and extent of the coverage
contemplated."

����
SECTION
12
.
�
Section 431:10G-206, Hawaii Revised Statutes,
is amended to read as follows:

����
"
�431:10G-206
�
Rate administration.
�
Except as otherwise provided in this article,
the commissioner shall implement and evaluate
moped,
motorcycle
,

and motor scooter insurance rates in compliance with article 14."

����
SECTION
13
.
�
Section 431:10G-301, Hawaii Revised Statutes,
is amended as follows:

����
1.
�
By amending its title and subsection (a) to
read:

����
"
�431:10G-301
�
Required
moped,
motorcycle
,
and
motor scooter policy coverage.
�

(a)
�
An insurance policy covering
a
moped,
motorcycle
,
or motor scooter shall provide insurance in
the following amounts to pay, on behalf of the owner or any operator of the
insured
moped,
motorcycle
,
or motor scooter, sums that the owner
or any operator may legally be obligated to pay for injury, death, or damage to
the property of others, except property owned by, being transported by, or in
charge of the insured that arise out of the ownership, operation, maintenance,
or use of the
moped,
motorcycle
,
or motor scooter:

����
(1)
�
Liability coverage of [
not
]
no
less
than $20,000 per person, with an aggregate limit of $40,000 per accident, for
all damages arising out of accidental harm sustained as a result of any one
accident; and

����
(2)
�
Liability coverage of [
not
]
no
less
than $10,000 for all damages arising out of injury to or destruction of
property, including
mopeds,
motorcycles
,
or motor scooters and
including the loss of use thereof, but not including property owned by, being
transported by, or in the charge of the insured, as a result of any one
accident."

�����
2.
�
By amending subsection (c) to read:

����
"(c)
�
Any operator or passenger of a
moped,
motorcycle
,

or motor scooter as defined in section 286-2 who receives injuries or dies in a
motor vehicle accident may not claim personal injury protection benefits under
a motor vehicle insurance policy, unless expressly provided for in the motor
vehicle policy."

����
SECTION
14.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 15.
�
This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Department
of Commerce and Consumer Affairs; Required Insurance; Mopeds

Description:

Requires
that moped operators carry an insurance policy by incorporating mopeds into the
insurance laws governing motorcycles and motor scooters, including with respect
to provisions concerning required licensure, the relationship with tort law,
proof of insurance card, penalties, rate regulation, and minimum coverage
levels.
�
Makes conforming amendments.

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