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HRS §431:10C-122

Paying tax and ownership fee on third-party total loss claims

When an insurer settles a total loss car claim with a third party, the insurer must pay the general excise tax and certificate of ownership fee, but only if the claimant proves they bought the car and paid those charges within 33 days. The insurer can instead pay the claimant directly at settlement. The payment is limited by the policy's property damage coverage.

everyone

The statute, as written — Payment of general excise tax and certificate of ownership fee on third-party claims

(a) When a motor vehicle insurer settles a total loss motor vehicle damage liability claim with a third-party claimant, the insurer shall pay the applicable general excise tax and certificate of ownership fee, subject to section 663-31; provided that if the third-party claimant cannot substantiate the purchase and the payment of the general excise tax and certificate of ownership fee by submitting to the insurer appropriate documentation within thirty-three days after the receipt of settlement, the insurer shall not be required to reimburse the third-party claimant for the tax or fee. (b) In lieu of the procedure in subsection (a), the insurer may directly pay the required general excise tax and certificate of ownership fee to the third-party claimant at the time of settlement. (c) An insurer's obligation to reimburse a third-party claimant for the applicable general excise tax and certificate of ownership fee as set forth in this section shall be subject to the property damage liability limit of the policy.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§663-31 How fault is shared when both sides are partly at fault

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.