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
[Underlined: MOPED,] MOTORCYCLE[Underlined: ,] 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:
"[Underlined: "Moped" has the same meaning as defined in section 286-2.]
[Underlined: "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 [Underlined: moped accident,] motorcycle [Underlined: 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 [Underlined: moped,] motorcycle[Underlined: ,] or motor scooter; except that when a [Underlined: moped,] motorcycle[Underlined: ,] 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, [[Struck through: the term owner]] [Underlined: "owner"] shall mean the debtor or lessee. Whenever transfer of title to a [Underlined: moped,] motorcycle[Underlined: ,] 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 [Underlined: mopeds,] motorcycles[Underlined: ,] and motor scooters. No person shall drive a [Underlined: moped,] motorcycle[Underlined: ,] or motor scooter upon any public street, road, or highway of this State at any time unless [[Struck through: such]] [Underlined: the moped,] motorcycle[Underlined: ,] 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 [[Struck through: antique]] motorcycle or motor scooter [Underlined: 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 [[Struck through: Motorcycle]] [Underlined: Moped, motorcycle,] or motor scooter self-insurance. The [Underlined: moped,] motorcycle[Underlined: ,] or motor scooter insurance required by section 431:10G-102 may be satisfied by any owner of a [Underlined: moped,] motorcycle[Underlined: ,] or motor scooter if:
(1) [[Struck through: Such]] [Underlined: 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 [Underlined: moped,] motorcycle[Underlined: ,] 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 [[Struck through: such]] [Underlined: the] owner as the claimant would have had if a policy meeting the requirements of section 431:10G-301 had been applicable to [[Struck through: such]] [Underlined: the moped,] motorcycle[Underlined: ,] 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 [Underlined: moped,] motorcycle[Underlined: ,] or motor scooter license; or
(2) Have obtained a valid [Underlined: moped,] motorcycle[Underlined: ,] or motor scooter learner's permit and[Underlined: , 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 [Underlined: moped accident,] motorcycle accident[Underlined: ,] or motor scooter accident, tort liability is not abolished.
(b) Any owner or operator of a [Underlined: moped,] motorcycle[Underlined: ,] 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 [[Struck through: 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 [Underlined: moped,] motorcycle[Underlined: ,] 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 [Underlined: moped,] motorcycle[Underlined: ,] or motor scooter; provided that insurers of five or more [Underlined: mopeds,] motorcycles[Underlined: ,] 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 [Underlined: moped,] motorcycle[Underlined: ,] 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 [Underlined: moped,] motorcycle[Underlined: ,] 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 [[Struck through: not]] no less than $100 [[Struck through: nor]] [Underlined: 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 [Underlined: moped,] motorcycle[Underlined: ,] or motor scooter owned by another person if the operator's own insurance covers such driving;
(2) Any operator of a [Underlined: moped,] motorcycle[Underlined: ,] 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 [Underlined: moped,] motorcycle[Underlined: ,] 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 [Underlined: moped,] motorcycle[Underlined: ,] and motor scooter insurance rates. (a) All premium rates for [Underlined: moped,] motorcycle[Underlined: ,] 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[Underlined: ,] or subscribers;
(B) Past and prospective expenses both country-wide and those specially applicable to this State in the sale and administration of [Underlined: moped,] [[Struck through: motorcycles]] [Underlined: motorcycle,] and motor [[Struck through: scooters]] [Underlined: scooter] insurance; and
(C) Investment income from reserves, unearned insurance premiums, and other unearned proceeds received on account of [Underlined: moped,] motorcycle[Underlined: ,] 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, [[Struck through: such as]] [Underlined: 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 [Underlined: moped,] motorcycle[Underlined: ,] 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 [Underlined: moped,] motorcycle[Underlined: ,] 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 [Underlined: moped,] motorcycle[Underlined: ,] and motor scooter policy coverage. (a) An insurance policy covering a [Underlined: moped,] motorcycle[Underlined: ,] or motor scooter shall provide insurance in the following amounts to pay, on behalf of the owner or any operator of the insured [Underlined: moped,] motorcycle[Underlined: ,] 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 [Underlined: moped,] motorcycle[Underlined: ,] or motor scooter:
(1) Liability coverage of [[Struck through: not]] [Underlined: 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 [[Struck through: not]] [Underlined: no] less than $10,000 for all damages arising out of injury to or destruction of property, including [Underlined: mopeds,] motorcycles[Underlined: ,] 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 [Underlined: moped,] motorcycle[Underlined: ,] 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.