RELATING TO INSURANCE.

HB708

HOUSE OF REPRESENTATIVES

H.B. NO.

708

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to insurance
.

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

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SECTION
1
.
�
Chapter 431, Hawaii Revised Statutes, is
amended by adding a new article to be appropriately designated and to read as
follows:

"
Article

electric bicycle insurance

PART I.
�

GENERAL PROVISIONS

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�431: -101
�
Definitions.
�
As used in this article:

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"Accidental
harm" means bodily injury, death, sickness, or disease caused by an
electric bicycle accident to a person.

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"Class
1 electric bicycle" means an electric bicycle equipped with a motor that
provides assistance only when the rider is pedaling and that ceases to provide
assistance when the electric bicycle reaches the speed of twenty miles per
hour.

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"Class
2 electric bicycle" means an electric bicycle equipped with a motor that
may be used exclusively to propel the electric bicycle and that ceases to
provide assistance when the electric bicycle reaches the speed of twenty miles
per hour.

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"Class
3 electric bicycle" means an electric bicycle equipped with a motor that
provides assistance only when the rider is pedaling and that ceases to provide
assistance when the electric bicycle reaches the speed of twenty-eight miles
per hour.

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"Electric
bicycle" means bicycle or tricycle equipped with fully operable pedals, a
seat or saddle for the use of the rider, and an electric motor of less than
seven hundred fifty watts that meets the requirements of a class 1 electric
bicycle, class 2 electric bicycle, or class 3 electric bicycle.

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"Electric
bicycle accident" means an accident arising out of the operation,
maintenance, or use of an electric bicycle, but not involving a motor vehicle.

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"Injury"
means accidental harm not resulting in death.

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"Person"
means, when appropriate to the context, not only individuals, but also corporations,
firms, associations, and societies.

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�431: -102
�
Conditions of operation and registration of electric
bicycles.
�
No person shall operate an
electric bicycle upon any public street, road, or highway of this State at any
time unless such electric bicycle is insured at all times under a liability
policy as provided in section 431: -301.

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�431: -103
�
Electric bicycle self-insurance.
�
The electric bicycle insurance required by
section 431: -102 may be satisfied by any owner of an electric
bicycle if:

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(1)
�
Such 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: -301 and providing coverage at
all times for the ownership period, as determined and approved by the
commissioner under rules; and

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

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�431: -104
�
Tort liability.
�
(a)
�

With respect to accidental harm incurred in or arising out of an
electric bicycle accident, tort liability shall not be abolished.

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(b)
�
Any owner or operator of an electric bicycle
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
person's representative or legal guardian, shall have a cause of action in tort
as provided in section 431:10C-306.

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�431: -105
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Verification of insurance.
�
Every insurer shall issue to each of its
insureds a paper or electronic proof of insurance card for each electric
bicycle 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:

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(1)
�
Name, make, year, and factory or serial number
of the electric bicycle; provided that insurers of five or more electric
bicycles 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 electric bicycle;

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(2)
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Policy number;

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

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(4)
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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 electric bicycle at all times and shall be
exhibited to a law enforcement officer upon demand.

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�431: -106
�
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 no less than $
and no more than $ for
each violation.

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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:

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(1)
�
Any operator of an electric bicycle owned by
another person if the operator's own insurance covers such operation;

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(2)
�
Any operator of an electric bicycle owned by
that person's employer during the normal scope of that person's employment; or

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(3)
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Any operator of a borrowed electric bicycle if
the operator holds a reasonable belief that the subject vehicle is insured.

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�431: -107
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Rules.
�

The commissioner may adopt rules pursuant to chapter 91 necessary for
the purposes of this article.

PART II.
�

RATES AND ADMINISTRATION

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�431: -201
�
Making of electric bicycle insurance rates.
�
(a)
�

All premium rates for electric bicycle insurance shall be made in
accordance with the following provisions:

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

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(2)
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Due consideration shall be given to:

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(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;

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(B)
�
Past and prospective expenses both
country-wide and those specially applicable to this State in the sale and
administration of electric bicycle insurance; and

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(C)
�
Investment income from reserves, unearned
insurance premiums, and other unearned proceeds received on account of electric
bicycle 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 but not limited to types of vehicles, occupations, and involvement in
past accidents;

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(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

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(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.

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(b)
�
Except to the extent necessary to meet the
provisions of subsection (a)(4), uniformity among insurers in any matters
within the scope of this section is neither required nor prohibited.

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�431: -202
�
Rate filings.
�
(a)
�

Every insurer shall file with the commissioner every manual of
classification, rule, rate, rating plan, designation of rating territories, or
standard for electric bicycle 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.

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(b)
�
The commissioner also may accept from an
advisory organization basic standards, manuals of classification, territories,
endorsements, forms, and other materials, not dealing with rates, for reference
filings by insurers.

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(c)
�
Each filing shall be accompanied by a $
fee payable to the commissioner, which fee shall be deposited in the
commissioner's education and training fund.

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(d)
�
A filing and any supporting information shall
be open to the public upon filing with the commissioner.

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�431: -203
�
Rate review:
�

request by aggrieved party.
�

(a)
�
Any person aggrieved by the
application as to such person of any classification, rule, standard, rate, or
rating plan made, followed, or adopted by an insurer may make written request
to the commissioner to review such application and grant the relief
requested.
�
If the commissioner finds
that probable cause for the complaint exists or that the complaint charges a
violation of this article, the commissioner shall conduct a hearing on the
complaint according to the procedure set forth in section 431:14-118.

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(b)
�
If, after a hearing conducted pursuant to
subsection (a), the commissioner finds that the complainant is entitled to
relief or that any classification, rule, standard, rate, rating territory, or
rating plan violates this article, the commissioner shall issue an order
granting the complainant's claim for relief or prohibiting the insurer from
using such classification, rule, standard, rate, rating territory, or rating
plan.
�
The order shall contain the
commissioner's findings of fact and conclusions of law, including a
specification of the respects in which a violation of this article exists and
specifying a reasonable time period within which the insurer shall comply with
the terms of the order.
�
Any such order shall
be subject to judicial review in the manner provided in chapter 91.

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�431: -204
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Rate review:
�

rate methods in noncompliance with article.
�
(a)
�
If
the commissioner has good cause to believe that a classification, rule,
standard, rate, rating territory, or rating plan made, followed, or adopted by
an insurer does not comply with the requirements of this article, the
commissioner shall, unless the commissioner has good cause to believe that such
noncompliance is wilful, give notice in writing to each insurer, stating in
what manner and to what extent such noncompliance is alleged to exist and
specifying a reasonable time, not less than ten days thereafter, within which
such noncompliance may be corrected.
�

Notices under this subsection shall be confidential as between the
commissioner and the parties unless a hearing is held as provided in subsection
(b).

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(b)
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If the commissioner has good cause to believe
such noncompliance to be wilful, or if, within the period prescribed by the
commissioner in the notice given under subsection (a), the insurer does not:

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(1)
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Correct the noncompliance specified by the
commissioner; or

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(2)
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Establish to the satisfaction of the
commissioner that such noncompliance does not exist,

then the commissioner may proceed with a hearing
which shall be subject to the hearing procedure provided in section 431:14-118.

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�431: -205
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Rate administration.
�
Except as otherwise provided in this article,
the commissioner shall implement and evaluate electric bicycle insurance rates
in compliance with article 14.

PART III.
�

COVERAGES AND RIGHTS

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�431: -301
�
Required electric bicycle policy coverage.
�
(a)
�
An
insurance policy covering an electric bicycle shall provide insurance in the
following amounts to pay, on behalf of the owner or any operator of the insured
electric bicycle, 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 electric bicycle:

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(1)
�
Liability coverage of no less than $
per person, with an aggregate limit of $
per accident, for all damages arising out of accidental harm sustained as a
result of any one accident; and

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(2)
�
Liability coverage of no less than $
for all damages arising out of injury to or destruction of property, including electric
bicycles 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.

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(b)
�
At the option of the owner, each insurer
shall:

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(1)
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Offer medical payment coverage up to $
to pay all reasonable expenses incurred within one year from the date of
accident for necessary medical, surgical, dental, ambulance, hospital,
professional, and nursing services;

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(2)
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Offer an income disability plan; and

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(3)
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Offer liability coverage in excess of the
minimum coverages required by this section.

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(c)
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Any operator or passenger of an electric
bicycle 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."

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SECTION 2.
�
This Act shall take effect on January 1,
2026.

INTRODUCED BY:

_____________________________

Report Title:

Electric
Bicycles; Insurance

Description:

Imposes
insurance coverage as a prerequisite for the operation of electric bicycles in
the State.
�
Establishes a regulatory
framework for electric bicycle insurance.
�

Effective 1/1/2026.

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