reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:8-323 Exemption from examination.

§431:8-323 Exemption from examination.
(a) Subject to section 431:8-322, an individual who applies for a nonresident surplus lines broker
license in this State who was previously licensed to sell surplus lines insurance
in another state shall not be required to complete any prelicensing education or examination. This exemption is only available if the person is currently licensed in that state or if the application is received within ninety days of the cancellation of the applicant's previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was licensed in good standing in that state, or the state's producer database records, maintained by the National Association of Insurance Commissioners, its affiliates, or its subsidiaries, indicate that the surplus lines broker's license is or was in good standing.
(b) A person licensed as a surplus lines broker
in another state who moves to this State and makes application within ninety days of establishing legal residence to become a resident licensee pursuant to section 431:8-310, shall not be required to satisfy the prelicensing educational components and examination otherwise required to obtain any line of authority previously held in the prior state, provided that the commissioner may impose these or other requirements by rule. [L 2012, c 66, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:8-324 Surplus lines broker license examination

§431:8-324 Surplus lines broker license examination
. (a) An applicant for a surplus lines broker license shall pass a written examination unless exempt pursuant to section 431:8-323. The examination shall test the knowledge of the applicant concerning property, marine and transportation, vehicle, general casualty, and surety insurance, the duties and responsibilities of a surplus lines broker, and the insurance laws and rules of this State.
(b) The commissioner may make arrangements, including contracting with an outside testing service, for administering examinations and collecting fees pursuant to section 431:7-101. The fees collected shall be nonrefundable.
(c) An applicant who fails to appear for the examination as scheduled or fails to pass the examination shall reapply for an examination and remit all required fees and forms before being scheduled for another examination.
(d) An applicant's examination scores shall be valid for two years from the date of the examination. [L 2012, c 66, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:8-325 Scope of examination.

§431:8-325 Scope of examination.
(a) The commissioner shall prescribe each examination, and each examination shall be of reasonably sufficient scope to test the applicant's knowledge relative to property, marine and transportation, vehicle, general casualty, and surety insurance, that may be dealt with under the license applied for, the duties and responsibilities relating thereto, and the laws of this State that are applicable to the licensee.
(b) The commissioner shall prepare and make available to surplus lines brokers a printed manual specifying in general terms the subjects that may be covered in any examination for a surplus lines broker license. [L 2012, c 66, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:8-326 Time of examinations.

§431:8-326 Time of examinations.
(a) The commissioner shall give examinations within this State at times and places as may reasonably serve the convenience of both the commissioner and applicants.
(b) The commissioner may require a waiting period of not more than six months before giving a new examination to an applicant who has failed to pass two previous examinations for a surplus brokers license. [L 2012, c 66, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:8-328 Continuing education recordkeeping

§431:8-328 Continuing education recordkeeping
. (a) Licensees shall maintain their own continuing education records and shall keep these records for four years after completion of an approved continuing education course.
(b) Approved course providers shall maintain attendance records for five years to permit the commissioner to verify the attendance and course completion of all licensees enrolled in an approved course. Approved course providers shall make their records available at all times to the commissioner. [L 2012, c 66, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:8-329 Commissioner's authority to grant waiver.

§431:8-329
Commissioner
'
s authority to grant waiver.
Upon receiving a written request and a showing of good cause, the commissioner may grant a waiver of any requirement of an insurance law or rule as applied to an applicant or a producer. [L 2012, c 66, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-101 Scope.

Note
Article heading amended by L 2000, c 288, §2; L 2003, c 212, §52.
Case Notes
Where management company for foreign insurer authorized to do business in Hawaii did not hold a general agent, subagent, or solicitor license under this article (1993), it could not have been legally appointed as either a general agent, subagent, or solicitor of insurer; thus it did not qualify as a "general agent", "subagent", or "solicitor" as defined by this chapter (1993), did not fall within the parameters of the category described by §237-13(7) and was thus subject to a general excise tax rate of four per cent pursuant to §237-13(6). 115 H. 180, 166 P.3d 353 (2007).
PART I. GENERAL PROVISIONS
Case Notes
Where management company for foreign insurer authorized to do business in Hawaii did not hold a general agent, subagent, or solicitor license under this article (1993), it could not have been legally appointed as either a general agent, subagent, or solicitor of insurer; thus it did not qualify as a "general agent", "subagent", or "solicitor" as defined by this chapter (1993), did not fall within the parameters of the category described by §237-13(7) and was thus subject to a general excise tax rate of four per cent pursuant to §237-13(6). 115 H. 180, 166 P.3d 353 (2007).
§431:9-101 Scope.
This article shall govern the qualifications and procedures for granting licenses to all insurance adjusters and independent bill reviewers. [L 1987, c 347, pt of §2; am L 2000, c 288, §6; am L 2001, c 216, §7; am L 2006, c 154, §13]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-105 Definitions.

§431:9-105 Definitions.
As used in this article, unless the context otherwise requires:
"Adjuster":
(1) Means any individual who:
(A) Acts solely on behalf of either the insurer or the insured, as an independent contractor or as an employee of an independent contractor; and
(B) Investigates for, reports to, or adjusts for the individual's principal relative to claims arising under insurance contracts; but
(2) Does not include an individual who is:
(A) An attorney at law who adjusts insurance losses from time to time incidental to the practice of the attorney's profession;
(B) An adjuster of marine losses;
(C) A salaried employee of an insurer or salaried employee of an adjusting corporation or an association owned or controlled by an insurer; or
(D) An individual who acts for a self-insurer or for an insured that administers its own group insurance contract.
"Independent adjuster" means an adjuster representing the interests of the insurer.
"Independent bill reviewer":
(1) Means any individual who:
(A) Acts solely on behalf of either the insurer as an independent contractor or as an employee of an independent contractor; and
(B) Reviews or audits billings for medical services; but
(2) Does not include an individual who is:
(A) A salaried employee of an insurer or salaried employee of an adjusting corporation or an association owned or controlled by an insurer; or
(B) A database provider for the insurer.
"Public adjuster" means an adjuster employed by and solely representing the financial interests of the insured named in the policy. [L 1987, c 347, pt of §2; am L 1997, c 83, §2; am L 2000, c 182, §8; am L 2002, c 155, §21; am L 2006, c 154, §14]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-203 General qualifications for license.

§431:9-203 General qualifications for license.
(a) For the protection of the public, the commissioner shall not issue or extend any license for an adjuster or independent bill reviewer:
(1) Except as provided by this article; or
(2) To any individual less than eighteen years of age.
(b) An applicant for a license under this article shall notify the commissioner of the applicant's legal name.
(c) An applicant shall apply to the department of commerce and consumer affairs and the commissioner for approval of the use of a trade name pursuant to section 431:2-217.
(d) A licensee shall:
(1) Inform the commissioner by any means acceptable to the commissioner of any change of status within thirty days of the change;
(2) Report any change of status to the business registration division if the licensee is a business entity registered with the department of commerce and consumer affairs pursuant to title 23 or title 23A, or if the licensee has registered a trade name pursuant to part II of chapter 482; and
(3) Apply to the department of commerce and consumer affairs and the commissioner for approval to change the status of a trade name pursuant to section 431:2-217.
Failure to timely inform the commissioner or business registration division of a change of status shall result in a penalty pursuant to section 431:2-203.
(e) As used in this section, "change of status" includes but shall not be limited to change of legal name, assumed name, trade name, business address, home address, mailing address, business phone number, business fax number, business electronic mail address, business website address, or home phone number. [L 1987, c 347, pt of §2; am L 2006, c 154, §16; am L 2010, c 116, §1(5); am L 2011, c 43, §14; am L 2019, c 70, §10]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-204 Applications for license.

§431:9-204 Applications for license.
(a) Application for an adjuster or independent bill reviewer license shall be made to the commissioner upon forms prescribed and furnished by the commissioner. As a part of or in connection with the application, the applicant shall furnish information including:
(1) The applicant's identity, personal history, experience, business records, and a full set of fingerprints, including a scanned file from a hard copy fingerprint, for the commissioner to obtain and receive national and state criminal history record checks from the Federal Bureau of Investigation and the Hawaii criminal justice data center, pursuant to section 846-2.7; and
(2) Other pertinent facts as the commissioner may reasonably require.
(b) Any person who wilfully misrepresents or omits any fact required to be disclosed in an application filed pursuant to this section shall be liable for penalties as provided by this code. [L 1987, c 347, pt of §2; am L 2009, c 77, §16; am L 2011, c 81, §5]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-206 Examinations for license.

§431:9-206 Examinations for license.
Prior to the issuance of the license, each applicant for license as an adjuster or independent bill reviewer shall personally take and pass to the satisfaction of the commissioner an examination given by the commissioner as a test of the applicant's qualifications and competence. [L 1987, c 347, pt of §2; am L 1993, c 205, §15; am L 1997, c 234, §2; am L 2000, c 288, §8; am L 2001, c 216, §9; am L 2021, c 111, §5]
Cross References
Qualification for independent bill reviewer's license, see §431:9-243.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-207 Scope of examination

§431:9-207 Scope of examination
(a) Each examination shall be as the commissioner prescribes and shall be of reasonably sufficient scope to test the applicant's knowledge relative to the classes of insurance which may be dealt with under the license applied for, and of the duties and responsibilities of, and the laws of this State applicable to, such licensee.
(b) The commissioner is required to prepare and make available to insurers and applicants a printed manual specifying in general terms the subjects which may be covered in any examination for a particular license. [L 1987, c 347, pt of §2; am L 2001, c 216, §10]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-208 Time of examinations.

§431:9-208 Time of examinations.
(a) The commissioner shall give examinations at such times and places within this State as are reasonably necessary to serve the convenience of both the commissioner and applicants.
(b) The commissioner may require a waiting period of not more than six months before giving a new examination to an applicant who has failed to pass two previous similar examinations. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-209 Advisory board.

§431:9-209 Advisory board.
The commissioner may, in the commissioner's discretion, appoint a group of individuals, to be known as the advisory board, to make recommendations to the commissioner concerning any matter relating to the examinations provided for by this article. Any individual appointed to the advisory board shall not be entitled to any compensation for the individual's services. The commissioner shall select a group who represents fairly the insurance industry in this State. The commissioner shall decide how long each individual is to serve on the advisory board. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-222 Qualification for adjuster's license.

§431:9-222 Qualification for adjuster's license.
(a) To qualify for an adjuster's license, an applicant shall comply with this article and shall:
(1) Be domiciled in this State, or in a state that will permit residents of this State to act as adjusters in the other state;
(2) Have had experience, special education, or training with reference to the handling of loss claims under insurance contracts, of sufficient duration and extent reasonably to make the individual competent to fulfill the responsibilities of an adjuster;
(3) Have successfully passed any examination required under section 431:9-206; and
(4) Have paid the license fees required by section 431:7-101.
(b) In addition to the requirements in subsection (a), an applicant for a public adjuster's license must file the bond required by section 431:9-223. [L 1987, c 347, pt of §2; am L 1997, c 234, §8; am L 2006, c 154, §17]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-222.5 Claims adjusters; limited license.

§431:9-222.5 Claims adjusters; limited license.
(a) The commissioner may issue a limited license to an adjuster who only adjusts either workers' compensation or crop insurance claims; provided that the adjuster:
(1) Is domiciled in the State of Hawaii, or in a state that permits residents of the State of Hawaii to act as adjusters in that other state;
(2) Has had experience, special education, or training in handling loss claims under workers' compensation or crop insurance contracts of sufficiently reasonable duration and extent to enable an individual to fulfill the responsibilities of an adjuster;
(3) Has a passing grade on the workers' compensation or crop insurance examination pursuant to section 431:9-206 or has a passing grade on an examination approved by the Risk Management Agency of the United States Department of Agriculture; and
(4) Pays the applicable fees.
(b) An adjuster with a limited license issued under this section may extend the license biennially upon successfully passing a reexamination.
[L 1995, c 234, §4; am L 2004, c 122, §27; am L 2009, c 77, §8; am L 2010, c 6, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-223 Public adjuster's bond.

§431:9-223 Public adjuster's bond.
(a) Prior to the issuance of a license as a public adjuster, the applicant for such license shall file with the commissioner and shall maintain in force while so licensed, a surety bond in favor of this State. The bond shall be executed by an authorized corporate surety approved by the commissioner, in the amount of $10,000. The bond shall be contingent on the accounting by the adjuster to any insured whose claim the adjuster is handling, for moneys or any settlement received in connection with such claim. The bond may be written without an expiration date and total aggregate liability on the bond may be limited to the payment of $10,000.
(b) Any such bond shall remain in force until the surety is released from liability by the commissioner, or until canceled by the surety. Without prejudice to any liability accrued prior to cancellation, the surety may cancel a bond upon sixty days advance notice in writing filed with the commissioner.
(c) During the existence of the license, the licensee may, in lieu of such bond, maintain on deposit with the commissioner a like amount in cash or securities approved by the commissioner. Such deposit shall be held for the same purpose and upon the same conditions as the bond. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-224 Separate licenses.

§431:9-224 Separate licenses.
The commissioner may license an individual as an independent adjuster or as a public adjuster, and separate licenses shall be required for each type of adjuster. An individual may be concurrently licensed under separate licenses as an independent adjuster and as a public adjuster. The full license fee shall be paid for each license. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-225 Form of adjusters' license.

§431:9-225 Form of adjusters' license.
Adjusters' licenses shall be in such form as the commissioner prescribes. The licenses shall contain:
(1) The name of the adjuster, and the address of the adjuster's place of business;
(2) A statement as to whether the adjuster is so licensed as an independent adjuster or as a public adjuster;
(3) Date of issuance of the license; and
(4) Other statements proper to the purposes of the license. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-226 Powers conferred by an adjuster's license.

§431:9-226 Powers conferred by an adjuster's license.
(a) An adjuster has authority under the adjuster's license only to investigate for, report to, or adjust for the adjuster's principal only on behalf of the insurers if licensed as an independent adjuster, or only on behalf of insureds if licensed as a public adjuster.
(b) An adjuster licensed concurrently as both an independent and a public adjuster is not permitted to represent both the insurer and the insured in the same transaction. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-227 Adjuster; restrictions.

§431:9-227
Adjuster; restrictions.
An adjuster who is a producer is not permitted to adjust or cause the adjustment of any loss where the adjuster's remuneration for the sale of insurance is primarily dependent upon the adjustment of the loss. This section shall not be applicable to any producer whose remuneration for the sale of insurance, on December 31, 1955, was primarily dependent upon the adjustment of losses, or to any producer or an insurer who, on December 31, 1955, was transacting insurance business where the producer's remuneration for the sale of such insurance was primarily dependent upon the adjustment of losses. [L 1987, c 347, pt of §2; am L 1997, c 83, §3; am L 2001, c 216, §12; am L 2002, c 155, §22]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-228 Place of business.

§431:9-228 Place of business.
(a) The place of business of every licensed adjuster and independent bill reviewer shall be the place where the licensee principally conducts transactions under the licensee's license.
(b) The licensee shall notify the commissioner of any change of business address within thirty days of the change. [L 1987, c 347, pt of §2; am L 1993, c 205, §18; am L 2000, c 288, §9; am L 2001, c 216, §13; am L 2007, c 214, §2; am L 2010, c 116, §1(6)]
Cross References
Qualification for independent bill reviewer's license, see §431:9-243.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-229 Records of adjuster or independent bill reviewer

§431:9-229 Records of adjuster or independent bill reviewer
. (a) Every adjuster or independent bill reviewer shall keep a record of all transactions consummated under the licensee's license. This record shall be in organized form according to class of insurance and shall include:
(1) If an adjuster, a record of each investigation or adjustment undertaken or consummated, and a statement of any fee, commission, or other compensation received or to be received by the adjuster on account of the investigation or adjustment;
(2) If an independent bill reviewer, a record of each bill reviewed and a statement of any fee, commission, or other compensation received or to be received by the independent bill reviewer on account of the bill reviewed; and
(3) Any additional information as shall be customary, or as may reasonably be required by the commissioner.
(b) All such records as to any particular transaction shall be kept in the licensee's office, available and open to the inspection of the commissioner during business hours during the five years, and in the case of workers' compensation claims during the eight years, immediately after the date of the completion of such transaction.
(c) This section shall not apply to life or accident and health or sickness insurance if the records required of such insurance are customarily maintained in the offices of the insurer. [L 1987, c 347, pt of §2; am L 2000, c 288, §10; am L 2001, c 216, §14; am L 2003, c 212, §53]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-230 Reporting and accounting for funds.

§431:9-230 Reporting and accounting for funds.
(a) Every licensed adjuster shall have the responsibilities of a trustee for all funds and return funds received or collected under this article.
(b) The licensee, upon receipt of the funds, shall either:
(1) Remit the funds and return funds received or held by the licensee to the persons entitled to the funds; or
(2) Maintain the funds at all times in a federally insured account with a bank, savings and loan association, or financial services loan company situated in Hawaii, separate from the licensee's own funds or funds held by the licensee in any other capacity, and return funds received by the licensee and unpaid to the insurers or persons entitled to the funds. Return funds shall be returned within thirty days, unless directed otherwise in writing by the person entitled to the funds.
The licensee shall not be required to maintain a separate bank account or other account for the funds of each person entitled to the funds, so long as the funds held for the person entitled to the funds are reasonably ascertainable from the books of account and records of the licensee. Only additional funds reasonably necessary to pay bank, savings and loan association, or financial services loan company charges may be commingled with the funds. In the event the bank, savings and loan association, or financial services loan company account is an interest earning account, the licensee may not retain the interest earned on the funds to the licensee's own use or benefit without the prior written consent of the person entitled to the funds. A trustee account shall be designated on the records of the bank, savings and loan association, or financial services loan company as a "trustee account established pursuant to section 431:9-230, Hawaii Revised Statutes", or words of similar import.
(c) Any licensee who, not being lawfully entitled to the funds, diverts or appropriates the funds or any portion of them for the licensee's own use, shall be guilty of embezzlement and shall be punished as provided in the criminal statutes of this State. [L 1987, c 347, pt of §2; am L 1993, c 107, §3; am L 1995, c 232, §15; am L 2001, c 216, §15; am L 2021, c 110, §9]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-232 Extension of licenses.

§431:9-232 Extension of licenses.
(a) Prior to the renewal or extension of a license, each licensee shall pay the fee required in section 431:7-101.
(b) A license for an adjuster or independent bill reviewer shall be inactivated if a licensee fails to pay any required fees or penalties.
An adjuster or independent bill reviewer who allows the adjuster's or independent bill reviewer's license to become inactive for nonpayment of the renewal fee may reinstate that license without the necessity of a written examination; provided that the adjuster or independent bill reviewer:
(1) Pays the fee and a penalty in the amount of double the then-unpaid fees within twelve months from the inactivation date; and
(2) Is in compliance with all the requirements of chapter 431.
(c) When the commissioner issues or extends a license, the commissioner shall:
(1) Determine the extension date, which is that date prior to which the license must be extended; and
(2) Notify the licensee in writing of the extension date.
The extension date shall be any date not less than one year and not more than three years after the date of the issue or the last extension of the license. [L 1987, c 347, pt of §2; am L 1999, c 163, §4; am L 2002, c 155, §23; am L 2006, c 154, §18; am L 2021, c 111, §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-234.5 Reporting of actions.

§431:9-234.5 Reporting of actions.
(a) A licensee shall report in writing to the commissioner any civil or administrative action taken against the licensee in any jurisdiction or by any governmental agency in the United States within thirty days of the final disposition of the matter.
(b) Within thirty days of arraignment, a licensee shall report in writing to the commissioner any criminal prosecution of the licensee being taken in any jurisdiction.
(c) A report pursuant to this section shall include a copy of the initial complaint or indictment and any and all other relevant legal documents. [L 2010, c 116, §1(2)]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-235 Denial, suspension, revocation of licenses.

§431:9-235 Denial, suspension, revocation of licenses.
(a) The commissioner may suspend, revoke, or refuse to extend any license issued under this article for any cause specified in any other provision of this article, or for any of the following causes:
(1) For any cause for which issuance of the license could have been refused had it then existed and been known to the commissioner;
(2) If the licensee wilfully violates or knowingly participates in the violation of any provision of this code;
(3) If the licensee has obtained or attempted to obtain any license issued under this article through wilful misrepresentation or fraud, or has failed to pass any examination required by section 431:9-206;
(4) If the licensee has misappropriated, converted to the licensee's own use, or illegally withheld moneys required to be held in a fiduciary capacity;
(5) If the licensee, with intent to deceive, has materially misrepresented the terms or effect of any insurance contract; or has engaged or is about to engage in any fraudulent transaction;
(6) If the licensee has been found to have committed any unfair practice or fraud as defined in article 13;
(7) If in the conduct of the licensee's affairs under the license, the licensee has shown oneself to be a source of injury and loss to the public; or
(8) If the licensee has dealt with, or attempted to deal with, insurance or to exercise powers relative to insurance outside the scope of the licensee's licenses.
(b) The license of any partnership or corporation may be suspended, revoked, or refused for any of the causes that relate to any individual designated in the license to exercise its powers.
(c) The holder of any license, which has been revoked or suspended, shall surrender the license certificate to the commissioner at the commissioner's request.
(d) The commissioner may suspend, revoke, or refuse to extend any license for any cause specified in this article by an order:
(1) Given to the licensee at least fifteen days prior to the order's effective date, subject to the right of the licensee to have a hearing as provided in section 431:2-308. The license shall be suspended pending the hearing; or
(2) Made after a hearing as provided in section 431:2-308. The effective date of the order shall be ten days after the date the order is given to the licensee. The order may be appealed to the circuit court of the first judicial circuit of this State as provided in chapter 91. [L 1987, c 347, pt of §2; am L 1997, c 233, §4; am L 2002, c 155, §24 and c 226, §6; am L 2003, c 133, §7 and c 212, §54; am L 2006, c 154, §19; am L 2019, c 279, §4; am L 2021, c 110, §10]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-235.5 Suspension or denial of license for noncompliance with support order. In addition to any other acts or conditions provided by law, the commissioner shall refuse to renew, reinstate, or restore, or shall deny or suspend any license if the commissioner has received certification from the child support enforcement agency pursuant to the terms of section 576D-13 that the licensee or applicant is not in compliance with an order of support or has failed to comply with a subpoena or warrant relating to a paternity or child support proceeding. Unless otherwise provided by law, following receipt of certification pursuant to this section, the commissioner shall renew, reinstate, restore, or grant the license only upon receipt of an authorization from the child support enforcement agency, office of child support hearings, or the family court. Sections 92-17, 431:9-235, 431:9-237, 431:9-238, 431:9-239, and 431:9-240 shall not apply to a refusal to renew, reinstate, or restore a license or to a license suspension or denial pursuant to this section. [L 1997, c 293, §2; am L 2006, c 154, §20]

§431:9-235.5
Suspension or denial of license for noncompliance with support order.
In addition to any other acts or conditions provided by law, the commissioner shall refuse to renew, reinstate, or restore, or shall deny or suspend any license if the commissioner has received certification from the child support enforcement agency pursuant to the terms of section 576D-13 that the licensee or applicant is not in compliance with an order of support or has failed to comply with a subpoena or warrant relating to a paternity or child support proceeding. Unless otherwise provided by law, following receipt of certification pursuant to this section, the commissioner shall renew, reinstate, restore, or grant the license only upon receipt of an authorization from the child support enforcement agency, office of child support hearings, or the family court. Sections 92-17, 431:9-235, 431:9-237, 431:9-238, 431:9-239, and 431:9-240 shall not apply to a refusal to renew, reinstate, or restore a license or to a license suspension or denial pursuant to this section. [L 1997, c 293, §2; am L 2006, c 154, §20]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-238 Power to fine.

§431:9-238 Power to fine.
(a) In addition to or in lieu of suspension, revocation, or refusal to extend any license, after a hearing, the commissioner may levy a fine upon the licensee in an amount not less than $100 and not more than $10,000.
(b) The order levying the fine shall specify the period within which the fine shall be fully paid, and which period shall be not less than thirty nor more than forty-five days from the date of the order.
(c) Upon failure to pay any such fine when due, the commissioner shall revoke the license of the licensee if not already revoked, and the fine shall be recovered in a civil action brought on behalf of the commissioner by the attorney general.
(d) Any fine collected shall be paid by the commissioner to the director of finance for the account of the compliance resolution fund. [L 1987, c 347, pt of §2; am L 1993, c 205, §20; am L 1999, c 163, §15(1); am L 2002, c 39, §13]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-239 Reinstatement or relicensing.

§431:9-239 Reinstatement or relicensing.
The commissioner shall not reinstate the license of or relicense any licensee or former licensee as to whom a license has been suspended, revoked, or extension refused, until:
(1) Any cause for the suspension, revocation, or refusal of such license is no longer existing;
(2) Any fine levied upon the licensee pursuant to section 431:9-238 and section 431:9-240 has been fully paid; and
(3) The commissioner is satisfied that such causes for the suspension, revocation, or refusal of such license will not reoccur in the future. [L 1987, c 347, pt of §2; am L 1995, c 232, §16]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-240 Fine in lieu.

§431:9-240 Fine in lieu.
(a) Upon the hearing of an appeal from an order suspending, revoking, or refusing to extend any license issued under this article, the court may impose a fine of not more than $10,000 in lieu of the commissioner's action, and payment of the fine within ten days shall reinstate, restore or extend, the license if:
(1) The court finds that the licensee is guilty of violation of the law; and
(2) The court deems the suspension, revocation, or refusal too severe a penalty under the facts as found.
(b) If it appears that a license of the licensee has previously been suspended, revoked, or refused for a similar offense, the court shall not have jurisdiction to impose a fine in lieu of the commissioner's action. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9-243 Qualification for independent bill reviewer's license.

§431:9-243 Qualification for independent bill reviewer's license.
To qualify for an independent bill reviewer's license, an applicant shall comply with this article and shall:
(1) Be domiciled in this State, or in a state that will permit residents of this State to act as independent bill reviewers in the other state;
(2) Have experience, special education, or training with reference to the review or audit of billings for medical services under insurance contracts, of sufficient duration and extent to reasonably make the individual competent to fulfill the responsibilities of an independent bill reviewer;
(3) Have successfully passed any examination required under section 431:9-206; and
(4) Pay the license fees required by section 431:7-101;
provided that any applicant who holds the credential of certified professional coder granted by the American Academy of Professional Coders or the credential of registered health information administrator, registered health information technician, certified coding specialist, or certified coding associate granted by the American Health Information Management Association shall be exempt from the requirements in paragraphs (1) to (3). [L 2000, c 288, pt of §1; am L 2002, c 126, §1; am L 2006, c 154, §21]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9A-101 Scope

Cross References
Bail agents; sureties, see article 9N.
[PART I. GENERAL PROVISIONS]
Revision Note
Part I designation added by revisor pursuant to L 2002, c 235, §4.
§431:9A-101 Scope
. This article governs qualifications and procedures for the licensing of insurance producers. It simplifies and organizes statutory language to improve efficiency, to permit the use of new technology, and to reduce costs associated with issuing and renewing insurance licenses. [L 2001, c 216, pt of §2; am L 2003, c 212, §55; am L 2006, c 154, §22]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9A-103 License required.

§431:9A-103 License required.
(a) A person shall not sell, solicit, or negotiate insurance in this State for any line, class, or classes of insurance unless the person is licensed for the proper line of authority or class in accordance with this article.
(b) The proper line of authority for which a producer is required to be licensed relative to sale, solicitation, or negotiation of any class or type of insurance set forth in sections 431:1-204 to 431:1-211 is set forth in the following table:
Class Required Line of Authority
Life Life
Accident and Health or Accident and Health or
Sickness Sickness
Property Property
Marine and Transportation Casualty and Property
Vehicle Casualty and Property
General Casualty Casualty
Surety Surety
Title Title
(c) Sale, solicitation, or negotiation of variable life and variable annuity products requires licensing in the variable life and variable annuity products line of authority.
(d) Sale, solicitation, or negotiation of personal lines insurance requires licensing in the personal lines line of authority or the property and casualty lines of authority.
(e) Sale, solicitation, or negotiation of limited lines insurance, including limited line credit and limited line travel insurance, is permitted pursuant to section 431:9A-107.5. [L 2001, c 216, pt of §2; am L 2002, c 155, §27; am L 2003, c 212, §56]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9A-105 Insurance producer license examination

§431:9A-105 Insurance producer license examination
. (a) An applicant for an insurance producer license shall pass a written examination unless exempt pursuant to section 431:9A-109. The examination shall test the knowledge of the applicant concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer, and the insurance laws and rules of this State.
(b) The commissioner may make arrangements, including contracting with an outside testing service, for administering examinations and collecting fees pursuant to section 431:7-101. The fees collected shall be nonrefundable.
(c) An applicant, who fails to appear for the examination as scheduled or fails to pass the examination, shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination.
(d) An applicant's examination scores shall be valid for two years from the date of the examination. [L 2001, c 216, pt of §2; am L 2002, c 155, §29; am L 2003, c 212, §58; am L 2006, c 154, §24; am L 2012, c 66, §7]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9A-106 Application for license.

§431:9A-106 Application for license.
(a) A person applying for an insurance producer license shall make application to the commissioner on the uniform application and declare under penalty of denial, suspension, or revocation of the license that the statements made in the application are true, accurate, and complete to the best of the applicant's knowledge and belief. Before approving the application, the commissioner shall find that the applicant:
(1) Is at least eighteen years of age;
(2) Has not committed any act that is a ground for a licensure sanction set forth in section 431:9A-112;
(3) Has paid the applicable fees set forth in section 431:7-101;
(4) Has passed, within the two years immediately preceding the issuance of the license, the applicable examination for each line of authority for which the applicant has applied; and
(5) Has submitted a full set of fingerprints, including a scanned file from a hard copy fingerprint, for the commissioner to obtain and receive national and state criminal history record checks from the Federal Bureau of Investigation and the Hawaii criminal justice data center, pursuant to section 846-2.7.
(b) A business entity acting as an insurance producer is required to obtain an insurance producer license. Application shall be made using the uniform business entity application. Before approving the application, the commissioner shall find that:
(1) The business entity has paid all applicable fees;
(2) The business entity has designated a licensed producer who is a natural person responsible for the business entity's compliance with the insurance laws and rules of this State; and
(3) Any licensed producer so designated or empowered by a corporation or partnership may not be so designated or empowered by more than one corporation or partnership, except when the corporations or partnerships are affiliates of each other.
As used herein:
"Control" has the same meaning as in section 431:11-102.
"Corporation or partnership" includes an affiliate of another corporation or partnership, if the same person, directly or indirectly through one or more intermediaries, controls both corporations or partnerships.
(c) The commissioner may require any documents reasonably necessary to verify the information contained in an application. [L 2001, c 216, pt of §2; am L 2002, c 155, §30; am L 2003, c 212, §59; am L 2006, c 154, §25; am L 2009, c 77, §17; am L 2021, c 111, §8]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9A-107.5 Limited license

§431:9A-107.5 Limited license
. (a) Notwithstanding any other provision of this article, the commissioner may issue:
(1) A limited license to persons selling travel insurance. For purposes of this paragraph, "travel insurance" means insurance coverage for personal risks incident to planned travel, including:
(A) Interruption or cancellation of trip or event;
(B) Loss of baggage or personal effects;
(C) Damages to accommodations or rental vehicles;
(D) Sickness, accident, disability, or death occurring during travel;
(E) Emergency evacuation;
(F) Repatriation of remains; or
(G) Any other contractual obligations to indemnify or pay a specified amount to the traveler upon determinable contingencies related to travel as approved by the commissioner.
"Travel insurance" does not include major medical plans that provide comprehensive medical protection for travelers with trips lasting longer than six months, including those working or residing overseas as an expatriate, or any other insurance product that requires a specific insurance producer license;
(2) A limited line credit insurance producer license to any individual who sells, solicits, or negotiates limited line credit insurance; or
(3) A limited license to any owner of a self-service storage facility, as defined in section 507-61, to sell stored property insurance, as defined in section 431:9A-171.
(b) The commissioner may prescribe and furnish forms calling for any information that the commissioner deems proper in connection with the application for or extension of these limited licenses.
(c) The limited license shall not be issued until the license fee has been paid.
(d) A person issued a limited license shall act in good faith, abstain from deception, and practice honesty and equity in all insurance matters. [L 2002, c 155, pt of §3; am L 2003, c 212, §61; am L 2006, c 154, §27; am L 2019, c 284, §3; am L 2021, c 110, §11; am L 2022, c 58, §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9A-108 Nonresident licensing.

§431:9A-108 Nonresident licensing.
(a) Except as provided in section 431:9A-112, a nonresident applicant shall receive a nonresident producer license if:
(1) The applicant is currently licensed and is in good standing as a resident producer in the applicant's home state;
(2) The applicant has submitted the proper request for
licensure and has paid the fees required by section
431:7-101;
(3) The applicant has submitted or transmitted to the commissioner the application for licensure that the applicant submitted to the applicant's home state, or in lieu of the same, a completed uniform application; and
(4) The applicant's home state awards nonresident producer licenses to residents of this State on the same basis.
(b) The commissioner may verify the producer's licensing status through the producer database maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries.
(c) A nonresident producer who moves from one state to another state or a resident producer who moves from this State to another state shall file a change of address with the commissioner and shall provide certification from the new resident state within thirty days of the change of legal residence. No fee or license application shall be required. Failure to timely inform the commissioner of a change in address shall result in a penalty pursuant to section 431:2-203.
(d) Notwithstanding any other provision of this article, an applicant licensed as a limited line credit insurance producer or other type of limited lines producer in the person's home state shall receive a nonresident limited lines producer license, pursuant to subsection (a), granting the same scope of authority as granted under the license issued by the producer's home state. Limited lines insurance authority is any authority granted by the home state, that restricts the authority of the license to less than the total authority prescribed in the associated major lines pursuant to section 431:9A-107(a)(1) through (5). [L 2001, c 216, pt of §2; am L 2003, c 212, §62; am L 2006, c 154, §28; am L 2012, c 66, §8]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9A-108.5 Process against nonresident licensees

§431:9A-108.5 Process against nonresident licensees
. (a) Each licensed nonresident producer shall appoint the commissioner as the producer's agent to receive service of legal process issued against the producer in this State upon causes of action arising within this State. Service upon the commissioner as agent shall constitute effective legal service upon the producer.
(b) The appointment shall be irrevocable for as long as there could be any cause of action against the producer arising out of the producer's insurance transactions in this State.
(c) Service of process on the commissioner shall be made in accordance with section 431:2-206. [L 2002, c 155, pt of §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9A-109 Exemption from examination.

§431:9A-109 Exemption from examination.
(a) Subject to section 431:9A-116, an individual who applies for an insurance producer license in this State who was previously licensed for the same lines of authority in another state shall not be required to complete any prelicensing education or examination. This exemption is only available if the person is currently licensed in that state or if the application is received within ninety days of the cancellation of the applicant's previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was licensed in good standing in that state, or the state's producer database records, maintained by the National Association of Insurance Commissioners, its affiliates, or its subsidiaries, indicate that the producer is or was licensed in good standing for the line of authority requested.
(b) A person licensed as an insurance producer in another state who moves to this State shall make application within ninety days of establishing legal residence to become a resident licensee pursuant to section 431:9A-106. No prelicensing educational component or examination shall be required of that person to obtain any line of authority previously held in the prior state except where the commissioner determines otherwise by rule. [L 2001, c 216, pt of §2; am L 2003, c 212, §63]