reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:30-123 Other laws.

§431:30-123 Other laws.
(a) Nothing herein prevents the enforcement of any other law of a compacting state except as provided in subsection (b).
(b) For any product approved by or certified to the commission, the rules, uniform standards, and any other requirements of the commission shall constitute the exclusive provisions applicable to the content, approval, and certification of such products. For advertisement that is subject to the commission's authority, any rule, uniform standard, or other requirement of the commission that governs the content of the advertisement shall constitute the exclusive provision that a commissioner may apply to the content of the advertisement. Notwithstanding the foregoing, no action taken by the commission shall abrogate or restrict:
(1) The access of any person to state courts;
(2) Remedies available under state law related to breach of contract, tort, or other laws not specifically directed to the content of the product;
(3) State law relating to the construction of insurance contracts; or
(4) The authority of the attorney general of the state, including but not limited to maintaining any actions or proceedings as authorized by law.
(c) All insurance products filed with individual states shall be subject to the laws of those states. [L 2004, c 104, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:30-124 Binding effect of the compact.

§431:30-124 Binding effect of the compact.
(a) All lawful actions of the commission, including all rules and operating procedures adopted by the commission, are binding upon the compacting states.
(b) All agreements between the commission and the compacting states are binding in accordance with their terms.
(c) Upon the request of a party to a conflict over the meaning or interpretation of commission actions, and upon a majority vote of the compacting states, the commission may issue advisory opinions regarding such meaning or interpretation.
(d) If any provision of this compact exceeds the constitutional limits imposed on the legislature of any compacting state, the obligations, duties, powers, or jurisdiction sought to be conferred by such provision upon the commission shall be ineffective as to such compacting state, and such obligations, duties, powers, or jurisdiction shall remain in the compacting state and shall be exercised by the agency thereof to which such obligations, duties, powers, or jurisdiction are delegated by law in effect at the time this compact becomes effective. [L 2004, c 104, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:31-101 Definitions.

§431:31-101 Definitions.
For purposes of this article:
"Customer" means a person who purchases portable electronics or services.
"Enrolled customer" means a customer who elects coverage under a portable electronics insurance policy issued to a vendor of portable electronics.
"Location" means any physical location in the State or any website, call-center site, or similar location directed to residents of the State.
"Portable electronics" means electronic devices that are portable in nature, and the accessories and services related to the use of the device.
"Portable electronics insurance" means insurance providing coverage for the repair or replacement of portable electronics, which may provide coverage for portable electronics against any one or more of the following: loss, theft, inoperability due to mechanical failure, malfunction, damage, or other similar causes. The term does not include:
(1) A service contract, as defined by section 481X-2;
(2) A policy of insurance covering a seller's or manufacturer's obligations under a warranty; or
(3) A homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar insurance policy.
"Portable electronics transaction" means:
(1) The sale or lease of portable electronics by a vendor to a customer; or
(2) The sale of a service related to the use of portable electronics by a vendor to a customer.
"Supervising entity" means a business entity that is a licensed insurer or insurance producer that is appointed or authorized by an insurer to supervise the administration of a portable electronics insurance program.
"Vendor" means a person in the business of directly or indirectly engaging in portable electronics transactions. [L 2012, c 321, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:31-102 Licensure of vendors.

§431:31-102 Licensure of vendors.
(a) A vendor shall hold a limited lines license to sell or offer coverage under a policy of portable electronics insurance.
(b) A limited lines license issued under this section shall authorize any employee or authorized representative of the vendor to sell or offer coverage under a policy of portable electronics insurance to a customer at each location at which the vendor engages in portable electronics transactions.
(c) The supervising entity shall maintain a registry of vendor locations that are authorized to sell or solicit portable electronics insurance coverage in the State. Upon request by the commissioner and with ten days' notice to the supervising entity, the registry shall be open to inspection and examination by the commissioner during regular business hours of the supervising entity.
(d) Notwithstanding any law to the contrary, a license issued pursuant to this section shall authorize the licensee and its employees or authorized representatives to engage in the activities that are permitted in this section. [L 2012, c 321, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:31-103 Requirements for sale of portable electronics insurance.

§431:31-103 Requirements for sale of portable electronics insurance.
(a) At every location at which portable electronics insurance is offered to customers, brochures or other written materials shall be made available to prospective customers. The brochures or other written materials shall:
(1) Disclose that portable electronics insurance may provide a duplication of coverage already provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of coverage;
(2) State that enrollment by the customer in a portable electronics insurance program is not required to purchase or lease portable electronics or services;
(3) Summarize the material terms of the insurance coverage, including:
(A) The identity of the insurer;
(B) The identity of the supervising entity;
(C) The amount of any applicable deductible and how it is to be paid;
(D) The benefits of the coverage; and
(E) The key terms and conditions of coverage, such as whether portable electronics may be repaired or replaced with a similar make and model reconditioned, or with non-original manufacturer parts or equipment;
(4) Summarize the process for filing a claim, including a description of how to return portable electronics and the maximum fee applicable if the customer fails to comply with any equipment-return requirements; and
(5) State that an enrolled customer may cancel enrollment for coverage under a portable electronics insurance policy at any time and the person paying the premium shall receive a refund of any applicable unearned premium.
(b) Portable electronics insurance may be offered on a month-to-month or other periodic basis as a group or master commercial inland marine policy issued to a vendor for its enrolled customers.
(c) Eligibility and underwriting standards for customers electing to enroll in coverage shall be established for each portable electronics insurance program. [L 2012, c 321, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:31-104 Authority of vendors.

§431:31-104 Authority of vendors.
(a) The employees and authorized representatives of vendors may sell or offer portable electronics insurance to customers and shall not be subject to licensure as an insurance producer under this chapter, provided that:
(1) The vendor obtains a limited lines license to authorize its employees or authorized representatives to sell or offer portable electronics insurance pursuant to this section;
(2) The insurer issuing the portable electronics insurance either directly supervises or appoints a supervising entity to supervise the administration of a portable electronics insurance program, including development of a training program for employees and authorized representatives of the vendors. The training shall comply with the following:
(A) The training shall be delivered to employees and authorized representatives of a vendor who are directly engaged in the activity of selling or offering portable electronics insurance;
(B) The training may be provided in electronic form; provided that, if the training is conducted in an electronic form, the supervising entity shall implement a supplemental education program regarding the portable electronics insurance product that is conducted and overseen by a licensed employee of the supervising entity; and
(C) Each employee and authorized representative shall receive basic instruction about the portable electronics insurance offered to customers and the disclosures required under section 431:31-103; and
(3) No employee or authorized representative of a vendor shall advertise, represent, or otherwise portray the employee or representative as a non-limited lines licensed insurance producer.
(b) The charges for portable electronics insurance coverage may be billed and collected by the vendor. Any charge to the enrolled customer for coverage that is not included in the cost associated with the purchase or lease of portable electronics or related services shall be separately itemized on the enrolled customer's bill. If the portable electronics insurance coverage is included with the purchase or lease of portable electronics or related services, the vendor shall clearly and conspicuously disclose to the enrolled customer that the portable electronics insurance coverage is included with the purchase or lease of portable electronics or related services. Vendors billing and collecting the charges shall not be required to maintain the funds in a segregated account; provided that the vendor is authorized by the insurer to hold the funds in an alternative manner and remits the amounts to the supervising entity within sixty days of receipt. All funds received by a vendor from an enrolled customer for the sale of portable electronics insurance shall be considered funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. Vendors may receive compensation for billing and collection services. [L 2012, c 321, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:31-107 Application for license and fees.

§431:31-107 Application for license and fees.
(a) A sworn application for a license under this article shall be filed with the commissioner on forms prescribed and furnished by the commissioner.
(b) The application for a license shall provide the:
(1) Name, residence address, electronic mail address, and other information required by the commissioner for an employee or officer of the vendor that is designated by the applicant as the person responsible for the vendor's compliance with the requirements of this article; provided that if the vendor derives more than fifty per cent of its revenue from the sale of portable electronics insurance, the information in this paragraph shall be provided for all officers, directors, and shareholders of record having beneficial ownership of ten per cent or more of any class of securities registered under the federal securities law; and
(2) Location of the applicant's home office.
(c) Any vendor engaging in portable electronics insurance transactions on or before January 1, 2013, shall apply for licensure within ninety days of the application's being made available by the commissioner. Any applicant commencing operations after January 1, 2013, shall obtain a license prior to offering portable electronics insurance.
(d) The license shall be renewable biennially. Licensing fees shall be governed by section 431:7-101. [L 2012, c 321, pt of §1; am L 2013, c 194, §2; am L 2021, c 111, §14]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:31-108 Portable electronics insurance claims.

§431:31-108 Portable electronics insurance claims.
No licensed independent adjuster or licensed vendor shall supervise more than twenty-five employees; provided that a licensed vendor who supervises employees or adjusts claims shall not be required to be licensed as an adjuster.
For purposes of this section:
"Automated claims adjudication system" means a preprogrammed computer system designed for the collection, data entry, calculation, and final resolution of portable electronics insurance claims, which:
(1) Shall be used only by a licensed independent adjuster, a licensed vendor, or supervised employees; and
(2) Shall comply with all claims-payment requirements of the insurance code.
"Employee" means an individual who collects claim information for portable electronics insurance claims from, or furnishes claim information to, insureds or claimants, and who conducts data entry, including entering data into an automated claims adjudication system. [L 2012, c 321, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-4 License suspension, revocation, or refusal to renew.

§431C-4 License suspension, revocation, or refusal to renew.
(a) The commissioner may suspend, revoke, or refuse to renew the license of any licensee if the commissioner finds that:
(1) There was any material misrepresentation in the application for the license;
(2) The licensee or any officer, partner, member, or director has been guilty of fraudulent or dishonest practices, is subject to a final administrative action, or is otherwise shown to be untrustworthy or incompetent to act as a licensee;
(3) The provider demonstrates a pattern of unreasonably withholding payments to policy owners;
(4) The licensee no longer meets the requirements for initial licensure;
(5) The licensee or any officer, partner, member, or director has been convicted of a felony, or of any misdemeanor of which criminal fraud is an element or has pleaded guilty or nolo contendere with respect to any felony or any misdemeanor of which criminal fraud or moral turpitude is an element, regardless of whether a judgment of conviction has been entered by the court;
(6) The provider has entered into any life settlement contract that has not been approved pursuant to this chapter;
(7) The provider has failed to honor contractual obligations set out in a life settlement contract;
(8) The provider has assigned, transferred, or pledged a settled policy to a person other than a provider licensed in this State, a purchaser, an accredited investor or qualified institutional buyer as defined respectively in Rule 501 of Regulation D or Rule 144A of the federal Securities Act of 1933, as amended, a financing entity, a special purpose entity, or a related provider trust; or
(9) The licensee or any officer, partner, member, or key management personnel has violated this chapter.
(b) Before the commissioner may deny a license application or suspend, revoke, or refuse to renew the license of any licensee under this chapter, the commissioner shall conduct a hearing in accordance with chapter 91. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-5 Contract requirements.

§431C-5 Contract requirements.
(a) No person may use any form of life settlement contract in this State unless it has been filed with and approved, if required, by the commissioner in a manner that conforms with the filing procedures and any time restrictions or deeming provisions, if any, for life insurance forms, policies, and contracts.
(b) No insurer may, as a condition of responding to a request for verification of coverage or in connection with the transfer of a policy pursuant to a life settlement contract, require that the owner, insured, provider, or broker sign any form, disclosure, consent, waiver, or acknowledgment that has not been expressly approved by the commissioner for use in connection with life settlement contracts in this State.
(c) A person shall not use a life settlement contract form or provide to an owner a disclosure statement form in this State unless first filed with and approved by the commissioner. The commissioner shall disapprove a life settlement contract form or disclosure statement form if, in the commissioner's opinion, the contract or provisions contained therein fail to meet the requirements of sections 431C-21, 431C-31, 431C-33, and 431C-43 or are unreasonable, contrary to the interests of the public, or otherwise misleading or unfair to the owner. At the commissioner's discretion, the commissioner may require the submission of advertising material. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-11 Examination.

§431C-11 Examination.
(a) The commissioner may, when the commissioner deems it reasonably necessary to protect the interests of the public, examine the business and affairs of any licensee or applicant for a license. The commissioner may order any licensee or applicant to produce any records, books, files or other information reasonably necessary to ascertain whether such licensee or applicant is acting or has acted in violation of the law or otherwise contrary to the interests of the public. The expenses incurred in conducting any examination shall be paid by the licensee or applicant.
(b) In lieu of an examination under this chapter of any foreign or alien licensee licensed in this State, the commissioner may, at the commissioner's discretion, accept an examination report on the licensee as prepared by the commissioner or the chief insurance regulatory official for the licensee's state of domicile or port-of-entry state.
(c) Records of all consummated transactions and life settlement contracts shall be maintained by the provider for three years after the death of the insured and shall be available to the commissioner for inspection during reasonable business hours. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-13 Examination reports.

§431C-13 Examination reports.
(a) Examination reports shall be comprised of only facts appearing upon the books, from the testimony of its officers, directors, employees, or agents or other persons examined concerning its affairs, and such conclusions and recommendations as the examiners find reasonably warranted from the facts.
(b) No later than sixty days following completion of the examination, the examiner in charge shall file with the commissioner a verified written report of examination under oath. Upon receipt of the verified report, the commissioner shall transmit the report to the licensee examined, together with a notice that shall afford the licensee examined a reasonable opportunity of not more than thirty days to make a written submission or rebuttal with respect to any matters contained in the examination report and which shall become part of the report or to request a hearing on any matter in dispute.
(c) In the event the commissioner determines that regulatory action is appropriate as a result of an examination, the commissioner may initiate any proceedings or actions provided by law. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-14 Confidentiality of examination information.

§431C-14 Confidentiality of examination information.
(a) Names and individual identification data for all owners, purchasers, and insureds shall be considered private and confidential information and shall not be disclosed by the commissioner, unless the disclosure is to another regulator or is required by law.
(b) Except as otherwise provided in this chapter, all examination reports, working papers, recorded information, documents and copies thereof produced by, obtained by, or disclosed to the commissioner or any other person in the course of an examination made under this chapter, or in the course of analysis or investigation by the commissioner of the financial condition or market conduct of a licensee, shall be confidential by law and privileged, shall not be subject to chapter 92F, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. The commissioner is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties. The licensee being examined may have access to all documents used to make the report. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-15 Examiner; conflict of interest.

§431C-15 Examiner; conflict of interest.
(a) An examiner shall not be appointed by the commissioner if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examination under this chapter. This section shall not be construed to automatically preclude an examiner from being:
(1) An owner;
(2) An insured in a policy or life settlement contract; or
(3) A beneficiary in a policy that is proposed for a life settlement contract.
(b) Notwithstanding the requirements of this section, the commissioner may retain from time to time, on an individual basis, qualified actuaries, certified public accountants, or other similar individuals who are independently practicing their professions, even though these persons may from time to time be similarly employed or retained by persons subject to examination under this chapter. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-16 Immunity from liability.

§431C-16 Immunity from liability.
(a) No cause of action shall arise nor shall any liability be imposed against the commissioner, the commissioner's authorized representatives, or any examiner appointed by the commissioner for any statements made or conduct performed in good faith while carrying out the provisions of this chapter.
(b) No cause of action shall arise, nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the commissioner or the commissioner's authorized representative or examiner pursuant to an examination made under this chapter, if the act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive. This subsection does not abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person identified in subsection (a).
(c) A person identified in subsection (a) or (b) shall be entitled to an award of attorney's fees and costs if the person is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this chapter and the party bringing the action was not substantially justified in doing so. For purposes of this section, a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-21 Advertising.

§431C-21 Advertising.
(a) A broker or provider licensed pursuant to this chapter may conduct or participate in advertisements within this State. Such advertisements shall comply with all advertising and marketing laws or rules adopted by the commissioner that are applicable to life insurers or to brokers and providers licensed pursuant to this chapter.
(b) Advertisements shall be accurate, truthful, and not misleading in fact or by implication.
(c) No person or trust shall:
(1) Directly or indirectly market, advertise, solicit, or otherwise promote the purchase of a policy for the sole purpose of or with an emphasis on settling the policy; or
(2) Use the words "free", "no cost", or words of similar import in the marketing, advertising, soliciting, or otherwise promoting of the purchase of a policy. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-32 Disclosure to insurer.

§431C-32 Disclosure to insurer.
(a) Without limiting the ability of an insurer from assessing the insurability of a policy applicant and determining whether or not to issue the policy, and in addition to other questions an insurance carrier may lawfully pose to a life insurance applicant, insurance carriers may inquire in the application for insurance whether the proposed owner intends to pay premiums with the assistance of financing from a lender that will use the policy as collateral to support the financing.
(b) If, as described in subsection (a)(3) of the definition of "life settlement contract" in section 431C-2, a loan provides funds that can be used for a purpose other than paying for the premiums, costs, and expenses associated with obtaining and maintaining the policy and loan, the application shall be rejected as a violation of the prohibited practices in section 431C-41.
(c) If the financing does not violate section 431C-41 in this manner, the insurance carrier:
(1) May make disclosures to the applicant and the insured, either on the application or an amendment to the application to be completed no later than the delivery of the policy, including the following:
"If you have entered into a loan arrangement where the policy is used as collateral, and the policy does change ownership at some point in the future in satisfaction of the loan, the following may be true:
(1) A change of ownership could lead to a stranger owning an interest in the insured's life;
(2) A change of ownership could in the future limit your ability to purchase future insurance on the insured's life because there is a limit to how much coverage insurers will issue on one life;
(3) Should there be a change of ownership and you wish to obtain more insurance coverage on the insured's life in the future, the insured's higher issue age, a change in health status, and/or other factors may reduce the ability to obtain coverage and/or may result in significantly higher premiums;
(4) You should consult a professional advisor, since a change in ownership in satisfaction of the loan may result in tax consequences to the owner, depending on the structure of the loan"; and
(2) May require certifications, such as the following, from the applicant or the insured:
"(1) I have not entered into any agreement or arrangement providing for the future sale of this life insurance policy;
(2) My loan arrangement for this policy provides funds sufficient to pay for some or all of the premiums, costs, and expenses associated with obtaining and maintaining my life insurance policy, but I have not entered into any agreement by which I am to receive consideration in exchange for procuring this policy; and
(3) The borrower has an insurable interest in the insured." [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-43 Fraud warning required.

§431C-43 Fraud warning required.
(a) Life settlement contracts and applications for life settlement contracts, regardless of the form of transmission, shall contain the following statement or a substantially similar statement: "Any person who knowingly presents false information in an application for insurance or life settlement contract is guilty of a crime and may be subject to fines and confinement in prison."
(b) The lack of a statement as required in subsection (a) shall not constitute a defense in any prosecution for a fraudulent life settlement act. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-44 Mandatory reporting of fraudulent life settlement acts.

§431C-44 Mandatory reporting of fraudulent life settlement acts.
(a) Any person engaged in the business of life settlements having knowledge or a reasonable belief that a fraudulent life settlement act is being, will be, or has been committed shall provide to the commissioner the information required by, and in a manner prescribed by, the commissioner.
(b) Any other person having knowledge or a reasonable belief that a fraudulent life settlement act is being, will be, or has been committed may provide to the commissioner the information required by, and in a manner prescribed by, the commissioner. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-45 Immunity from liability.

§431C-45 Immunity from liability.
(a) No civil liability shall be imposed on and no cause of action shall arise from a person's furnishing information concerning suspected, anticipated, or completed fraudulent life settlement acts or suspected or completed fraudulent insurance acts, if the information is provided to or received from:
(1) The commissioner or the commissioner's employees, agents, or representatives;
(2) Federal, state, or local law enforcement or regulatory officials or their employees, agents, or representatives;
(3) A person involved in the prevention and detection of fraudulent life settlement acts or that person's agents, employees, or representatives;
(4) Any regulatory body or their employees, agents, or representatives, overseeing life insurance, life settlements, securities, or investment fraud;
(5) The life insurer that issued the policy covering the life of the insured; or
(6) The licensee and any agents, employees, or representatives.
(b) Subsection (a) shall not apply to statements made with actual malice. In an action brought against a person for filing a report or furnishing other information concerning a fraudulent life settlement act or a fraudulent insurance act, the party bringing the action shall plead specifically any allegation that subsection (a) does not apply because the person filing the report or furnishing the information did so with actual malice.
(c) A person identified in subsection (a) shall be entitled to an award of attorney's fees and costs if the person is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this chapter and the party bringing the action was not substantially justified in doing so. For purposes of this section, a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated.
(d) This section does not abrogate or modify common law or statutory privileges or immunities enjoyed by a person identified in subsection (a). [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-46 Confidentiality.

§431C-46 Confidentiality.
(a) The documents and evidence provided pursuant to section 431C-45 or obtained by the commissioner in an investigation of suspected or actual fraudulent life settlement acts shall be privileged and confidential and shall not be a public record and shall not be subject to discovery or subpoena in a civil or criminal action.
(b) Subsection (a) does not prohibit release by the commissioner of documents and evidence obtained in an investigation of suspected or actual fraudulent life settlement acts:
(1) In administrative or judicial proceedings to enforce laws administered by the commissioner;
(2) To federal, state, or local law enforcement or regulatory agencies, to an organization established for the purpose of detecting and preventing fraudulent life settlement acts, or to the National Association of Insurance Commissioners; or
(3) At the discretion of the commissioner, to a person in the business of life settlements that is aggrieved by a fraudulent life settlement act.
(c) Release of documents and evidence under subsection (b) does not abrogate or modify the privilege granted in subsection (a). [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-47 Other law enforcement or regulatory authority.

§431C-47 Other law enforcement or regulatory authority.
This chapter shall not:
(1) Preempt the authority or relieve the duty of other law enforcement or regulatory agencies to investigate, examine, and prosecute suspected violations of law;
(2) Preempt, supersede, or limit any provision of any state securities law or any rule, order, or notice issued thereunder;
(3) Prevent or prohibit a person from voluntarily disclosing information concerning life settlement fraud to a law enforcement or regulatory agency other than the insurance division; or
(4) Limit the powers granted elsewhere by the laws of this State to the commissioner or the insurance fraud investigations unit to investigate and examine possible violations of law and to take appropriate action against wrongdoers. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-48 Life settlement anti-fraud initiatives.

§431C-48 Life settlement anti-fraud initiatives.
(a) Providers and brokers shall have in place anti-fraud initiatives reasonably calculated to detect, prosecute, and prevent fraudulent life settlement acts. At the discretion of the commissioner, the commissioner may order, or a licensee may request and the commissioner may grant, such modifications of the following required initiatives as necessary to ensure an effective anti-fraud program. The modifications may be more or less restrictive than the required initiatives so long as the modifications may reasonably be expected to accomplish the purpose of this section. Anti-fraud initiatives shall include:
(1) Fraud investigators, who may be provider or broker employees or independent contractors; and
(2) An anti-fraud plan that shall be submitted to the commissioner. The anti-fraud plan shall include but not be limited to:
(A) A description of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures for resolving material inconsistencies between medical records and insurance applications;
(B) A description of the procedures for reporting possible fraudulent life settlement acts to the commissioner;
(C) A description of the plan for anti-fraud education and training of underwriters and other personnel; and
(D) A description or chart outlining the organizational arrangement of the anti-fraud personnel who are responsible for the investigation and reporting of possible fraudulent life settlement acts and investigating unresolved material inconsistencies between medical records and insurance applications.
(b) Anti-fraud plans submitted to the commissioner shall be privileged and confidential and shall not be a public record and shall not be subject to discovery or subpoena in a civil or criminal action. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-49 Injunctions; civil remedies; cease and desist.

§431C-49 Injunctions; civil remedies; cease and desist.
(a) In addition to the penalties and other enforcement provisions of this chapter, if any person violates this chapter or any rule implementing this chapter, the commissioner may seek an injunction in a court of competent jurisdiction in the county in which the person resides or has a principal place of business and may apply for temporary and permanent orders that the commissioner determines necessary to restrain the person from further committing the violation.
(b) Any person damaged by the acts of another person in violation of this chapter or any rule implementing this chapter, may bring a civil action for damages against the person committing the violation in a court of competent jurisdiction.
(c) The commissioner may issue a cease and desist order upon a person who violates any provision of this chapter, any rule or order adopted by the commissioner, or any written agreement entered into with the commissioner, in accordance with chapter 91.
(d) When the commissioner finds that such an action presents an immediate danger to the public and requires an immediate final order, the commissioner may issue an emergency cease and desist order reciting with particularity the facts underlying such findings. The emergency cease and desist order shall be effective immediately upon service of a copy of the order on the respondent and shall remain effective for ninety days. If the commissioner begins non-emergency cease and desist proceedings under subsection (a), the emergency cease and desist order shall remain effective, absent an order by an appellate court of competent jurisdiction pursuant to chapter 91. In the event of a wilful violation of this chapter, the trial court may award statutory damages in addition to actual damages in an additional amount up to three times the actual damage award. The provisions of this chapter may not be waived by agreement. No choice of law provision may be used to prevent the application of this chapter to any life settlement contract in which a party to the settlement is a resident of this State. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-50 Penalties.

§431C-50 Penalties.
(a) The commissioner may levy a civil penalty not exceeding $10,000 and the amount of the claim for each violation upon any person, including those persons and their employees licensed pursuant to this chapter, who is found to have committed a fraudulent life settlement act or violated any other provision of this chapter.
(b) The license of a person licensed under this chapter who commits a fraudulent life settlement act shall be revoked for a period of at least one year.
(c) The penalties under this chapter are cumulative and may be imposed in addition to any other penalties authorized by law. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431C. Life Settlements › 431C-52 Conflict of laws.

§431C-52 Conflict of laws.
(a) If there is more than one owner of a single policy, and the owners are residents of different states, the life settlement contract shall be governed by the law of the state in which the owner having the largest percentage ownership resides or, if the owners hold equal ownership, the state of residence of one owner agreed upon in writing by all of the owners. The law of the state of the insured shall govern in the event that equal owners fail to agree in writing upon a state of residence for jurisdictional purposes.
(b) A provider from this State who enters into a life settlement contract with an owner who is a resident of another state that has enacted statutes or adopted regulations governing life settlement contracts, shall be governed in the effectuation of that life settlement contract by the statutes and regulations of the owner's state of residence. If the state in which the owner is a resident has not enacted statutes or regulations governing life settlement contracts, the provider shall give the owner notice that neither that state nor this State regulates the transaction upon which the owner is entering. For transactions in those states, however, the provider shall maintain all records required if the transactions were executed in the state of residence. The forms used in those states need not be approved by the insurance division.
(c) If there is a conflict in the laws that apply to an owner and a purchaser in any individual transaction, the laws of the state that apply to the owner shall take precedence and the provider shall comply with those laws. [L 2012, c 256, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-1.5 Financial responsibility.

§431K-1.5 Financial responsibility.
Whenever pursuant to the laws of this State or any county of this State a demonstration of financial responsibility is required as a condition for obtaining a license or permit to undertake specified activities, if any such requirement may not be satisfied by obtaining insurance from an insurance company not authorized in this State, then such requirement may not be satisfied by purchasing insurance from a risk retention group not chartered in this State. [L 1989, c 272, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-3.5 Registration fees and service fees of risk retention groups not chartered in this State.

§431K-3.5 Registration fees and service fees of risk retention groups not chartered in this State.
(a) A risk retention group chartered in states other than this State and seeking to do business as a risk retention group in this State shall pay an initial registration fee of $300 to the commissioner and shall thereafter pay annually a service fee of $150 on or before the extension date of the certificate of authority, as established pursuant to section 431:3-214. The commissioner may, upon showing of good cause, waive or modify, in whole or part, all fees in this subsection by order.
(b) If the service fee is not paid on or before the extension date, a penalty shall be imposed in the amount of fifty per cent of the service fee. The commissioner shall provide written notice of the delinquency of payment and the imposition of the authorized penalty. If the service fee and the penalty are not paid within thirty days immediately following the date of the notice of delinquency, the commissioner may revoke the registration of the risk retention group and may not reinstate the registration until the service fee and the penalty have been paid. [L 2015, c 63, pt of §1; am L 2021, c 110, §15]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-4 Compulsory associations.

§431K-4 Compulsory associations.
(a) No risk retention group shall be permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this State, nor shall any risk retention group or its insureds receive any benefit from any such fund for claims arising out of the operations of such risk retention group.
(b) When a purchasing group obtains insurance covering its members' risks from an insurer not authorized in this State or a risk retention group, no such risks wherever resident or located shall be covered by any insurance insolvency guaranty fund or similar mechanism in this State.
(c) When a purchasing group obtains insurance covering its members' risks from an insurer authorized in Hawaii, claims shall be covered by the property and liability insurance guaranty association, subject to the provisions of chapter 431, article 16.
(d) A risk retention group shall participate in this State's joint underwriting associations and mandatory liability pools as provided by any law of this State. [L 1987, c 180, pt of §1; am L 1989, c 272, §5]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-6 Purchasing groups; exemption from certain laws relating to the group purchase of insurance.

§431K-6 Purchasing groups; exemption from certain laws relating to the group purchase of insurance.
A purchasing group meeting the criteria established under the provisions of the Federal Liability Risk Retention Act of 1986, P.L. 99-563, shall be exempt from any law of this State relating to the creation of groups for the purchase of insurance, prohibition of group purchasing or any law that would discriminate against a purchasing group or its members. In addition, an insurer shall be exempt from any law of this State which prohibits providing, or offering to provide, to a purchasing group or its members advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages or other matters. A purchasing group shall be subject to all other applicable laws of this State. [L 1987, c 180, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-7 Notice and registration requirements of purchasing groups.

§431K-7 Notice and registration requirements of purchasing groups.
(a) A purchasing group that intends to do business in this State shall furnish, on forms prescribed by the National Association of Insurance Commissioners, notice to the commissioner that shall include the following:
(1) Identification of the state in which the group is domiciled;
(2) Specification of the lines and classifications of liability insurance that the purchasing group intends to purchase;
(3) Identification of the insurance company or risk retention group from which the group intends to purchase its insurance and the domicile of the company or risk retention group; and
(4) Identification of the principal place of business of the group.
(b) The commissioner may require a purchasing group to provide the following information:
(1) The method by which, and the person or persons through whom, insurance will be offered to its members whose risks are resident or located in this State;
(2) Identify all other states in which the group intends to do business; and
(3) Provision of other information to verify that the purchasing group qualifies as such under section 431K-1.
(c) The purchasing group shall register with and designate the commissioner or other appropriate authority as its agent solely for the purpose of receiving service of legal documents or process, except that these requirements shall not apply in the case of a purchasing group that:
(1) Was domiciled before April 1, 1986, and is domiciled on and after October 27, 1986, in any state of the United States;
(2) Before October 27, 1986, purchased insurance from an insurance carrier licensed in any state, and since October 27, 1986, purchased its insurance from an insurance carrier licensed in any state;
(3) Was a purchasing group under the requirements of the Product Liability Risk Retention Act of 1981, 15 U.S.C. §3901 et seq., before October 27, 1986; and
(4) Does not purchase insurance that was not authorized for purposes of an exemption under that Act, as in effect before October 27, 1986.
(d) Within ten days a purchasing group shall notify the commissioner of any changes in any of the items set forth in subsections (a) and (b). [L 1987, c 180, pt of §1; am L 1989, c 272, §6; am L 1993, c 321, §17; am L 1997, c 368, §9]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-7.1 Registration fees and service fees of purchasing groups.

§431K-7.1 Registration fees and service fees of purchasing groups.
(a) A purchasing group that intends to do business in this State shall pay an initial registration fee of $300 to the commissioner and shall thereafter pay annually a service fee of $150 on or before the extension date of the certificate of authority, as established pursuant to section 431:3-214. The commissioner may, upon showing of good cause, waive or modify, in whole or part, all fees in this subsection by order.
(b) If the service fee is not paid on or before August 16 of the year in which payment is due, a penalty shall be imposed in the amount of fifty per cent of the service fee. The commissioner shall provide written notice of the delinquency of payment and the imposition of the authorized penalty. If the service fee and the penalty are not paid within thirty days immediately following the date of the notice of delinquency, the commissioner may revoke the registration of the purchasing group and may not reinstate the registration until the service fee and the penalty have been paid. [L 2015, c 63, pt of §1; am L 2021, c 110, §16]