The national guide covers the other casualty coverages:

• personal and commercial umbrella and excess liability;
• professional liability (errors and omissions);
• fidelity and surety bonds;
• other specialty liability lines.

Hawaii's state questions here focus on motorcycle insurance (HRS Article 431:10G), which is separate from the auto no-fault law, and on proof of financial responsibility under the motor vehicle safety responsibility law (HRS Chapter 287). The Insurance Code's casualty definitions are also tested.

National concepts in brief

• A surety bond has three parties: the principal (who must perform), the obligee (who is protected) and the surety (who guarantees performance).
• A fidelity bond protects an employer against employee dishonesty.
• Errors and omissions insurance covers negligence in professional services.
• An umbrella adds liability limits above underlying policies.

Hawaii's casualty definitions

General casualty insurance includes (HRS 431:1-209):

• employers' liability for injured workers;
• burglary, theft, robbery, forgery and vandalism;
• boiler and machinery explosions;
• malpractice, meaning liability for negligence in professional services.

Surety insurance includes fidelity coverage on people in positions of trust (HRS 431:1-210).

Licensing: the casualty line covers legal liability for death, injury, disability or property damage (HRS 431:9A-107(a)(4)). Selling general casualty requires the casualty line (HRS 431:9A-103(b)).

Motorcycle and motor scooter insurance (Article 431:10G)

• A motorcycle or motor scooter may be driven on public roads only if it is insured at all times. Antiques are the exception (HRS 431:10G-102).
• Minimum liability limits: $20,000 per person / $40,000 per accident bodily injury and $10,000 property damage (HRS 431:10G-301(a)). These are lower than the 40/80/20 limits for cars.
• Coverages the insurer must offer (HRS 431:10G-301(b)):
  • medical payments up to $10,000 for expenses incurred within one year;
  • an income disability plan;
  • higher liability limits.
• Safety course discount: completing a DOT-approved motorcycle education course earns a 15% cut in liability premium (HRS 431:10G-201(c)).
• A motorcycle accident is one arising from motorcycle use that does not involve a motor vehicle (HRS 431:10G-101).
• PIP: motorcycle riders hit by a car do not get PIP under the car's policy unless that policy expressly provides it (HRS 431:10C-304(1), 10G-301(c)).

Proof of financial responsibility (HRS Chapter 287)

What it is: proof that a person can pay damages for accidents that happen after the proof takes effect (HRS 287-1).

Accepted forms (HRS 287-21):

• a certificate of insurance from an insurer authorized to do business in Hawaii (HRS 287-22);
• a bond;
• a deposit of money or securities;
• a certificate of self-insurance.

Owner's proof: when the person required to give proof drives for the owner as an employee, or lives in the owner's household, the owner's proof is accepted in place of theirs (HRS 287-37).

First uninsured-driving conviction: a first conviction within five years for driving without insurance does not, by itself, require proof of financial responsibility (HRS 287-20(a)). The penalties for uninsured driving are covered in the Personal Auto Policy guide.

Hawaii law uses the terms "proof of financial responsibility" and "certificate of insurance." The "SR-22" label comes from industry usage and is not the statutory term.

Common exam traps

• Motorcycle minimums are 20/40/10. Car minimums are 40/80/20.
• Motorcycle riders are outside the auto PIP system unless a policy expressly covers them.
• The motorcycle safety course discount is 15%.
• Fidelity coverage is classed as surety insurance in Hawaii. Boiler, burglary and malpractice coverage are general casualty.
• Proof of financial responsibility covers accidents after its effective date, not earlier ones.