## Facts

- Mathew S. Mikelson, a full-time University of Hawaiʻi student financially dependent on his father, was injured in a January 1999 motorcycle accident in Hawaiʻi caused by another motorist.
- Mikelson’s father, a California resident, held a California-issued USAA automobile policy listing three automobiles; Mikelson was listed as an operator.
- The motorcycle Mikelson was operating at the time of the accident was not listed on the USAA policy.
- Mikelson recovered $20,000 (the tortfeasor’s liability limits) and then sought underinsured motorist (UIM) benefits from USAA.
- The policy had no express choice-of-law clause and contained a territory provision extending coverage to accidents occurring anywhere in the United States.
- USAA denied UIM coverage, asserting California law controlled and barred UIM recovery for an accident involving a non-listed motorcycle.
- The Hawaiʻi circuit court applied Hawaiʻi law and entered judgment for Mikelson; USAA appealed.

## Issues

1. Whether Hawaiʻi or California law governs a UIM coverage dispute under a California-issued auto policy, when the accident occurred in Hawaiʻi and the policy contains no express choice-of-law clause but contemplates nationwide coverage.
2. Under the applicable law, whether a listed operator/insured may recover UIM benefits for injuries sustained while operating a motorcycle not listed on the policy.

## Decision

- The Supreme Court of Hawaiʻi affirmed the judgment for Mikelson.
- The court applied Hawaiʻi law based on a policy-centered conflicts analysis and Hawaiʻi’s interest in compensating persons injured in motor vehicle accidents occurring in Hawaiʻi.
- Applying Hawaiʻi’s insured-oriented view of UIM coverage, the court held the unlisted status of the motorcycle did not defeat UIM coverage for an insured person injured by an underinsured motorist.

## Legal Principles

- In multistate insurance disputes, Hawaiʻi applies a policy-centered choice-of-law analysis that considers the jurisdictions’ interests and which law better advances the forum’s policies.
- Hawaiʻi public policy favors liberal construction of UIM statutes to ensure adequate compensation for persons injured by underinsured motorists.
- Under Hawaiʻi law, UIM coverage is generally insured-oriented (person-oriented) and follows the insured, rather than being limited to occupancy of a listed covered vehicle, absent a valid and clear restriction consistent with Hawaiʻi law.
- Policy language contemplating nationwide accidents supports applying Hawaiʻi’s protective UIM rules to accidents occurring in Hawaiʻi when doing so advances Hawaiʻi’s compensatory objectives.

## Conclusion

The Supreme Court of Hawaiʻi applied Hawaiʻi law to a UIM coverage dispute involving a California-issued USAA policy and held that an insured listed as an operator could recover UIM benefits for a Hawaiʻi accident even though he was injured while operating a motorcycle not listed on the policy.


Mikelson v. United Servs. Auto. Ass'n, 107 Haw. 192, 111 P.3d 601 (Haw. 2005)