Under Hawaii law, a party to a construction contract cannot exempt itself from liability for bodily injury caused by its “sole negligence or willful misconduct.”  Haw. Rev. Stat. §431:10-222.   Texas is similar in that it does not allow an indemnity agreement to cover an indemnitee’s sole negligence, but provides an exception if the …

     The Honolulu Advertiser reports that the Hawaii Department of Commerce and Consumer Affairs has issued ten licenses to new captive insurance companies, bringing the total of approved licenses to 212 since the industry was established in 1986.

     Captive insurance is a type of self-insurance whereby a company establishes a separate, licensed …

     The Hawaii Intermediate Court of Appeals recently issued an important decision regarding uninsured motorist (“UM”) coverage.  In Liki v. First Fire & Casualty Ins. of  Hawaii, Inc., No. 28076 (Ct. App. Haw. Feb. 29, 2008), the ICA extended the Hawaii Supreme Court’s “chain of events” test to find a sufficient connection between …

     Under Hawaii Insurance law, punitive damages are not insurable unless expressly provided for in an insurance policy.  Haw. Rev. Stat. §431:10-240.  A recent Texas case issued a surprising decision holding that public policy did not bar a liability insurer from covering punitive damage for an employer’s gross negligence.  See Fairfield Ins. Co. v. …

     We are in no hurry for another hurricane to strike Hawaii.  Hurricane Katrina, however, has created many interesting insurance-related issues.  if and when a hurricane strikes Hawaii again, resolution of these issues are bound to impact Hawaii insurance law.

     The Associated Press reports Allstate will restore coverage for hundreds of customers…

     The interplay between wind and flood coverage after a catastrophic storm is always of interest to Hawaii insurance law because we live in a state prone to hurricane damage.  The latest case to address the dichotomy between wind and flood coverage is Ragas v. State Farm Fire and Casualty Co., 2008 U.S. …

     The Ninth Circuit recently issued a decision regarding a vessel pollution insurance policy that could have implications for Hawaii.  In Certain Underwriters at Lloyds, London v. Inlet Fisheries Inc., No. 06-35383 (9th Cir., Feb. 11, 2008), the Court determined Lloyds was justified in voiding a policy because the insured did not …

     Courts consistently strike down state laws that create claims for relief against ERISA-covered employee benefit plans, even if those state laws also regulate insurance.  In 2004, the Hawaii Supreme Court found that the Employee Retirement Income Security Act (ERISA) preempted Hawaii’s statute providing review by the Insurance Commissioner pursuant to the Patient’s Bill …

     The Frankfort, Indiana Times reports that as a consequence of heavy flooding this winter, state insurance regulators will require additional training for agents selling flood insurance.  Home insurance policies generally do not include coverage for flood damage.  Only one percent of Indiana’s 2.3 million homes have such insurance, while flood losses from 1998 …

     Florida enacted legislation last year to allow condominiums to take greater control over the costs and availability of hurricane coverage through the formation of self insurance trusts.  The Palm Beach Daily News reported last week that the Palm Beach Windstorm Self Insurance Trust was the first group in the state able to meet …