reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-211 Credit union groups.

§431:10D-211 Credit union groups.
The lives of the members of a credit union may be insured under a policy issued to the credit union that shall be deemed the policyholder to insure members of the credit union for the benefit of persons other than the credit union or any of its officials, subject to the following requirements:
(1) Except for paragraph (2), the members eligible for insurance under the policy shall be all of the members of the credit union;
(2) An insurer may exclude or limit the coverage on any member as to whom evidence of individual insurability is not satisfactory to the insurer;
(3) The premiums for the policy shall be paid by the policyholder, either from the credit union's own funds or from charges collected from the insured members specifically for the insurance, or from both; provided that when the premium is paid by the members, or by the credit union and its members jointly, at least seventy-five per cent of the then eligible members, excluding any as to whom evidence of insurability is not satisfactory to the insurer, shall elect to make the required contributions; and
(4) The amounts of insurance under the policy shall be based upon some plan precluding individual selection either by the members or by the credit union.
As used in this section, "credit union" means a credit union chartered under the provisions of the Federal Credit Union Act or article 10 of chapter 412. [L 1987, c 347, pt of §2; am L 1993, c 350, §17; am L 2004, c 122, §52]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-211.5 Other groups; limits.

§431:10D-211.5 Other groups; limits.
Group life insurance offered to a Hawaii resident under a group life insurance policy issued to a group, other than a group described in sections 431:10D-202 through 431:10D-211, shall be subject to the following requirements:
(1) No group life insurance policy shall be delivered in this State unless the commissioner finds that:
(A) The issuance of the group life insurance policy is not contrary to the best interest of the public;
(B) The issuance of the group life insurance policy would result in economies of acquisition or administration; and
(C) The benefits of the group life insurance policy are reasonable in relation to the premium charged;
(2) No group life insurance coverage may be offered in this State, pursuant to this section, by an insurer under a group life insurance policy issued in another state, unless:
(A) The commissioner finds that the requirements of paragraph (1) have been met; or
(B) The issuing state has requirements substantially similar to those contained in paragraph (1) and has determined that those requirements have been met;
(3) The premium for a group life insurance policy issued pursuant to this section shall be paid by the policyholder, by covered persons, or both; and
(4) An insurer may exclude from coverage or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer under a group life insurance policy issued pursuant to this section. [L 2010, c 32, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-212 Spouses and dependents of insured individuals.

§431:10D-212 Spouses and dependents of insured individuals.
(a) Except for a policy issued under sections 431:10D-203 and 431:10D-211, insurance under any group life insurance policy issued pursuant to this article may be extended to insure the employees or members of such groups against loss due to the death of their spouses and dependent children subject to the following:
(1) The spouse and dependent of the individual insured may be covered in amounts of insurance equivalent to the amount of coverage of the insured individual;
(2) The premiums for the insurance of the spouse or dependent shall be paid either from funds contributed by the employer, union, association or other person to whom the policy has been issued, or from funds contributed by the individual insured, or from both; and
(3) An insurer may exclude or limit the coverage on any spouse or dependent child as to whom evidence of individual insurability is not satisfactory to the insurer.
(b) For purposes of this section:
"Dependent" means a child of the insured individual:
(1) Under eighteen years of age;
(2) Under twenty-three years of age who is attending an educational institution and relying upon the insured individual for financial support; or
(3) Regardless of age who is incapable of self-sustaining employment by reason of intellectual disability or physical handicap and is chiefly dependent upon the insured individual for support and maintenance.
"Individual" includes a person or a member of any group provided in section 431:10D-202 and sections 431:10D-204 through 431:10D-210. [L 1987, c 347, pt of §2; am L 2004, c 122, §53; am L 2008, c 155, §3; am L 2011, c 220, §12]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-214 Notice to insured regarding conversion right.

§431:10D-214 Notice to insured regarding conversion right.
If any individual insured under a group life insurance policy delivered in this State becomes entitled under the terms of the policy to have an individual policy of life insurance issued to the individual without evidence of insurability, subject to making of application and payment of the first premium within the period specified in the policy, and if the individual is not given notice of the existence of such right at least fifteen days prior to the expiration date of such period, then, in such event the individual shall have an additional period within which to exercise the right, but nothing herein shall be construed to continue any insurance beyond the period provided in the policy. This additional period shall expire fifteen days next after the individual is given such notice but in no event shall the additional period extend beyond sixty days next after the expiration date of the period provided in the policy. Written notice presented to the individual or mailed by the policyholder to the last known address of the individual or mailed by the insurer to the last known address of the individual as furnished by the policyholder shall constitute notice for the purposes of this section. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-215 Assignment of policies.

§431:10D-215 Assignment of policies.
Subject to the terms of the policy, or pursuant to an agreement between the insured, the group policyholder, and the insurer, any person insured under a group life insurance policy may make to any person, other than the policyholder, an assignment of all or any part of the incidents of ownership conferred on the insured by the policy or by law, including specifically, but not by way of limitation, the right to exercise the conversion privilege and the right to name a beneficiary. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-302 General life insurance provisions applicable.

§431:10D-302 General life insurance provisions applicable.
The following [sections] of part I of this article shall apply to industrial life insurance policies:
(1) 431:10D-104;
(2) 431:10D-108;
(3) 431:10D-109;
(4) 431:10D-110; and
(5) 431:10D-116. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-303 Industrial life insurance defined.

§431:10D-303 Industrial life insurance defined.
Industrial life insurance is any life insurance provided by an individual insurance contract issued in face amount of less than $1,000 under which premiums are payable monthly or more often, and bearing the words "Industrial Policy" printed upon the policy as a part of the descriptive matter. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-307 Beneficiary.

§431:10D-307 Beneficiary.
(a) Each policy shall have a space on the front or back page of the policy for the name of the beneficiary designated with a reservation of the right to designate or change the beneficiary after the issuance of the policy.
(b) The policy may also provide that no designation or change of beneficiary shall be binding on the insurer until endorsed on the policy by the insurer, and that the insurer may refuse to endorse the name of any proposed beneficiary who does not appear to the insurer to have an insurable interest in the life of the insured. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-308 Facility of payment.

§431:10D-308 Facility of payment.
Such a policy may also provide that if the beneficiary designated in the policy does not surrender the policy with due proof of death within the period stated in the policy, which shall not be less than thirty days after the death of the insured, or if the beneficiary is the estate of the insured or is a minor, or dies before the insured or is not legally competent to give a valid release, then the insurer may make payment under the policy to the personal representative of the insured, or to any of the insured's relatives by blood, legal adoption or connection by marriage, or to any person appearing to the insurer to be equitably entitled to such payment by reason of having been named beneficiary, or by reason of having incurred expense for the maintenance, medical attention, or burial of the insured. The policy may also include a similar provision applicable to any other payment due under the policy. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-309 Premiums paid direct.

§431:10D-309 Premiums paid direct.
In the case of weekly premium policies, there may be a provision that upon proper notice to the insurer while premiums on the policy are not in default beyond the grace period, of the intention to pay future premiums directly to the insurer at its home office or any office designated by the insurer for the purpose, the insurer will, at the end of each period of a year from the due date of the first premium so paid, for which period the premiums are so paid continuously without default beyond the grace period, refund a stated percentage of the premiums in an amount which fairly represents the savings in collection expense. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-310 Application to term and specified insurance.

§431:10D-310 Application to term and specified insurance.
Any of the provisions required by this part or any portion thereof which are not applicable to single premium or term policies or to policies issued or granted pursuant to nonforfeiture provisions, shall to that extent not be incorporated therein. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-312 Prohibited provisions.

§431:10D-312 Prohibited provisions.
No industrial life insurance policy shall contain:
(1) A provision by which the insurer may deny liability under the policy for the reason that the insured has previously obtained other insurance from the same insurer.
(2) A provision giving the insurer the right to declare the policy void because the insured has had any disease or ailment, whether specified or not, or because the insured has received institutional, hospital, medical, or surgical treatment or attention; except a provision which gives the insurer the right to declare the policy void if the insured has, within two years prior to the issuance of the policy, received institutional, hospital, medical, or surgical treatment or attention, and if the insured or claimant under the policy fails to show that the condition occasioning such treatment or attention was not of a serious nature or was not material to the risk.
(3) A provision giving the insurer the right to declare the policy void because the insured had been rejected for insurance, unless such right is conditioned upon a showing by the insurer, that knowledge of such rejection would have led to a refusal by the insurer to make the contract. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-313 Limitation of liability.

§431:10D-313 Limitation of liability.
The insurer may in any such policy limit its liability for the same causes and to the same extent as is provided in section 431:10D-312 for other life insurance contracts. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-401 Scope.

§431:10D-401 Scope.
This part shall apply to all group and individual life insurance policies and certificates except:
(1) Variable life insurance;
(2) Individual and group annuity contracts;
(3) Credit life insurance; and
(4) Life insurance policies with no illustrated death benefits for any individual exceeding $10,000. [L 2000, c 252, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-403 Policies to be illustrated.

§431:10D-403 Policies to be illustrated.
(a) Each insurer marketing policies to which this part is applicable shall notify the commissioner whether a policy form is to be marketed with or without an illustration. For all policy forms being actively marketed on July 1, 2001, the insurer shall identify in writing the forms and whether or not an illustration will be used with them. For policy forms filed after July 1, 2001, the identification shall be made at the time of filing. Any previous identification may be changed by notice to the commissioner.
(b) If the insurer identifies a policy form as one to be marketed without an illustration, any use of an illustration for any policy using that form prior to the first policy anniversary is prohibited.
(c) If a policy form is identified by the insurer as one to be marketed with an illustration, a basic illustration prepared and delivered in accordance with this part is required, except that a basic illustration need not be provided to individual members of a group or to individuals insured under multiple lives coverage issued to a single applicant unless the coverage is marketed to these individuals. The illustration furnished an applicant for a group life insurance policy or policies issued to a single applicant on multiple lives may be either an individual or composite illustration representative of the coverage on the lives of members of the group or the multiple lives covered.
(d) Potential enrollees of non-term group life subject to this part shall be furnished a quotation with the enrollment materials. The quotation shall show potential policy values for sample ages and policy years on a guaranteed and nonguaranteed basis appropriate to the group and the coverage. This quotation shall not be considered an illustration for purposes of this part, but all information provided shall be consistent with the illustrated scale. A basic illustration shall be provided at delivery of the certificate to enrollees for non-term group life who enroll for more than the minimum premium necessary to provide pure death benefit protection. In addition, the insurer shall make a basic illustration available to any non-term group life enrollee who requests it. [L 2000, c 252, pt of §2]
Revision Note
"July 1, 2001" substituted for "the effective date of this part" pursuant to §23G-15.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-404 General requirements and prohibitions.

§431:10D-404 General requirements and prohibitions.
(a) An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of this part, be clearly labeled "life insurance illustration", and contain the following basic information:
(1) Name of insurer;
(2) Name and business address of producer and insurer's authorized representative, if any;
(3) Name, age, and sex of proposed insured, except where a composite illustration is permitted under this part;
(4) Underwriting or rating classification upon which the illustration is based;
(5) Generic name of policy, the company product name, if different, and form number;
(6) Initial death benefit; and
(7) Dividend option election or application of non-guaranteed elements, if applicable.
(b) When using an illustration in the sale of a life insurance policy, an insurer, its producers, or other authorized representatives shall not:
(1) Represent the policy as anything other than a life insurance policy;
(2) Use or describe nonguaranteed elements in a manner that is misleading or has the capacity or tendency to mislead;
(3) State or imply that the payment or amount of nonguaranteed elements is guaranteed;
(4) Use an illustration that does not comply with the requirements of this part;
(5) Use an illustration that at any policy duration depicts policy performance more favorable to the policy owner than that produced by the illustrated scale of the insurer whose policy is being illustrated;
(6) Provide an applicant with an incomplete illustration;
(7) Represent in any way that premium payments will not be required for each year of the policy in order to maintain the illustrated death benefits, unless that is a fact;
(8) Use the term "vanish" or "vanishing premium", or a similar term that implies the policy becomes paid up, to describe a plan for using nonguaranteed elements to pay a portion of future premiums;
(9) Except for policies that can never develop nonforfeiture values, use an illustration that is lapse-supported; or
(10) Use an illustration that is not self-supporting.
(c) If an interest rate used to determine the illustrated nonguaranteed elements is shown, it shall not be greater than the earned interest rate underlying the disciplined current scale. [L 2000, c 252, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-406 Standards for supplemental illustrations.

§431:10D-406 Standards for supplemental illustrations.
(a) A supplemental illustration may be provided so long as:
(1) It is appended to, accompanied by, or preceded by a basic illustration that complies with this part;
(2) The nonguaranteed elements shown are not more favorable to the policy owner than the corresponding elements based on the scale used in the basic illustration;
(3) It contains the same statement required of a basic illustration that nonguaranteed elements are not guaranteed; and
(4) For a policy that has a contract premium, the contract premium underlying the supplemental illustration is equal to the contract premium shown in the basic illustration. For policies that do not require a contract premium, the premium outlay underlying the supplemental illustration shall be equal to the premium outlay shown in the basic illustration.
(b) The supplemental illustration shall include a notice referring to the basic illustration for guaranteed elements and other important information. [L 2000, c 252, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-410 Penalties.

§431:10D-410 Penalties.
In addition to any other penalties provided by the laws of this State, an insurer or producer that violates a requirement of this part shall be guilty of an unfair or deceptive act or practice in violation of article 13. [L 2000, c 252, pt of §2; am L 2004, c 122, §56]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-503 Duties of producers.

§431:10D-503 Duties of producers.
(a) A producer who initiates an application shall submit to the insurer, with or as part of the application, a statement signed by both the applicant and the producer as to whether the applicant has existing policies or contracts. If the answer is "no", the producer's duties with respect to replacement are complete.
(b) If the applicant answered "yes" to the question regarding existing coverage referred to in subsection (a), the producer shall present and read to the applicant, not later than at the time of taking the application, a notice in a form approved by the commissioner. However, no approval shall be required when amendments to the notice are limited to the omission of references not applicable to the product being sold or replaced. The notice shall be signed by both the applicant and the producer attesting that the notice has been read aloud by the producer or that the applicant did not wish the notice to be read aloud (in which case the producer need not have read the notice aloud) and the notice was left with the applicant.
(c) The notice shall list all life insurance policies or annuities proposed to be replaced, properly identified by name of insurer, the insured or annuitant, and policy or contract number if available. The notice shall include a statement as to whether a policy or contract will be replaced or whether a policy will be used as a source of financing for the new policy or contract. If a policy or contract number has not been issued by the existing insurer, alternative identification, such as an application or receipt number, shall be listed.
(d) In connection with a replacement transaction the producer shall leave with the applicant at the time an application for a new policy or contract is completed the original or a copy of all sales material. With respect to electronically presented sales material, it shall be provided to the policy or contract owner in printed form no later than at the time of policy or contract delivery.
(e) Except as provided in section 431:10D-505(c), in connection with a replacement transaction, the producer shall submit to the insurer to which an application for a policy or contract is presented, a copy of each document required by this section, a statement identifying any preprinted or electronically presented company-approved sales materials used, and copies of any individualized sales materials, including any illustrations related to the specific contract or policy purchased. [L 2000, c 252, pt of §3; am L 2001, c 121, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-506 Duties of the existing insurer.

§431:10D-506 Duties of the existing insurer.
Where a replacement is involved in the transaction, the existing insurer shall:
(1) Retain and be able to produce all replacement notifications received, indexed by replacing insurer, for at least five years or until the conclusion of the next regular examination conducted by the insurance commissioner of its state of domicile, whichever is later;
(2) Send a letter to the policy or contract owner of the right to receive information regarding the existing policy or contract values including, if available, an in force illustration or policy summary if an in force illustration cannot be produced within five business days of receipt of a notice that an existing policy or contract is being replaced. The information shall be provided within five business days of receipt of the request from the policy or contract owner; and
(3) Upon receipt of a request to borrow, surrender, or withdraw any policy values, send a notice, advising the policy owner that the release of policy values may affect the guaranteed elements, non-guaranteed elements, face amount, or surrender value of the policy from which the values are released. The notice shall be sent separate from the check if the check is sent to anyone other than the policy owner. In the case of consecutive automatic premium loans, the insurer is only required to send the notice at the time of the first loan. [L 2000, c 252, pt of §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-507 Duties of insurers with respect to direct-response solicitations. "NOTICE REGARDING REPLACEMENT

§431:10D-507 Duties of insurers with respect to direct-response solicitations.
(a) In the case of an application that is initiated as a result of a direct-response solicitation, the insurer shall require, with or as part of each completed application for a policy or contract, a statement asking whether the applicant, by applying for the proposed policy or contract, intends to replace, discontinue, or change an existing policy or contract. If the applicant indicates a replacement or change is not intended or if the applicant fails to respond to the statement, the insurer shall send the applicant, with the policy or contract, a notice in a form approved by the commissioner, which shall state the following:
"NOTICE REGARDING REPLACEMENT
REPLACING YOUR LIFE INSURANCE POLICY OR ANNUITY
Are you thinking about buying a new life insurance policy or annuity and discontinuing or changing an existing one? If you are, your decision could be a good one or a mistake. You will not know for sure unless you make a careful comparison of your existing benefits and the proposed policy or contract's benefits.
Make sure you understand the facts. You should ask the company or producer that sold you your existing policy or contract to give you information about it.
Hear both sides before you decide. This way you can be sure you are making a decision that is in your best interest."
(b) If the insurer has proposed the replacement or if the applicant indicates a replacement is intended and the insurer continues with the replacement, the insurer shall:
(1) Provide to applicants or prospective applicants with the policy or contract a notice, in a form similar to that required by section 431:10D-503(b). In these instances the insurer may delete the references to the producer, including the producer's signature, without having to obtain approval of the form from the commissioner. The insurer's obligation to obtain the applicant's signature shall be satisfied if it can demonstrate that it has made a diligent effort to secure a signed copy of the notice referred to in this paragraph. The requirement to make a diligent effort shall be deemed satisfied if the insurer includes in the mailing a self-addressed postage prepaid envelope with instructions for the return of the signed notice referred to in this section; and
(2) Comply with the requirements of section 431:10D-505(a)(2), if the applicant furnishes the names of the existing insurers, and the requirements of sections 431:10D-505(a)(3), 431:10D-505(a)(4), and 431:10D-505(b). [L 2000, c 252, pt of §3; am L 2003, c 212, §91]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-508 Violations and penalties.

§431:10D-508 Violations and penalties.
(a) Any failure to comply with this part shall be considered a violation of article 13 of this chapter. Violations shall include but are not limited to:
(1) Any deceptive or misleading information set forth in sales material;
(2) Failing to ask the applicant in completing the application the pertinent questions regarding the possibility of financing or replacement;
(3) The intentional incorrect recording of an answer;
(4) Advising an applicant to respond negatively to any question regarding replacement to prevent notice to the existing insurer; or
(5) Advising a policy or contract owner to write directly to the company in such a way as to attempt to obscure the identity of the replacing producer or company.
(b) Policy and contract owners have the right to replace existing life insurance policies or annuity contracts after indicating in or as a part of applications for new coverage that replacement is not their intention; however, patterns of such action by policy or contract owners of the same producer shall be deemed prima facie evidence of the producer's knowledge that replacement was intended in connection with the identified transactions, and these patterns of action shall be deemed prima facie evidence of the producer's intent to violate this part.
(c) Where it is determined that the requirements of this part have not been met the replacing insurer shall provide to the policy owner an in force illustration if available or policy summary for the replacement policy or available disclosure document for the replacement contract and the appropriate notice regarding replacements required under this part.
(d) Violations of this part shall subject the violators to penalties that may include the revocation or suspension of a producer's or company's license, monetary fines and the forfeiture of any commissions or compensation paid to a producer as a result of the transaction in connection with which the violations occurred. In addition, where the commissioner has determined that the violations were material to the sale, the insurer may be required to make restitution, restore policy or contract values, and pay appropriate interest on the amount refunded in cash. [L 2000, c 252, pt of §3; am L 2003, c 212, §92]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-601 Definitions.

§431:10D-601 Definitions.
Whenever used in this part, unless a different meaning clearly appears from the context:
"Buyer's guide" means:
(1) A buyer's guide to fixed deferred annuities approved by the commissioner; or
(2) The National Association of Insurance Commissioners Buyer's Guide to Fixed Deferred Annuities.
"Contract owner" means the owner named in the annuity contract or certificate holder in the case of a group annuity contract.
"Determinable elements" means elements that are derived from processes or methods that are guaranteed at issue and not subject to company discretion but where the values or amounts cannot be determined until some point after issue. These elements include:
(1) Premiums;
(2) Credited interest rates, including any bonus;
(3) Benefits;
(4) Values;
(5) Non-interest-based credits;
(6) Charges; or
(7) Elements of formulas used to determine any of the above.
These elements may be described as guaranteed but not determined at issue. An element is considered determinable if it was calculated from underlying determinable elements only, or from both determinable and guaranteed elements.
"Disclosure document" means a document provided by an insurer to applicants or prospective applicants for an annuity contract that explains the terms of the contract and contains the information required in section 431:10D-603(d).
"Funding agreement" means an agreement for an insurer to:
(1) Accept and accumulate funds; and
(2) Make one or more payments at future dates in amounts that are not based on mortality or morbidity contingencies.
"Generic name" means a short title descriptive of the annuity contract being applied for or illustrated, such as "single premium deferred annuity".
"Guaranteed elements" means:
(1) Premiums;
(2) Credited interest rates, including any bonus;
(3) Benefits;
(4) Values;
(5) Non-interest-based credits;
(6) Charges; or
(7) Elements of formulas used to determine any of the above,
which are guaranteed and determined at issue. An element is considered guaranteed if all of the underlying elements used in its calculation are guaranteed.
"Non-guaranteed elements" means:
(1) Premiums;
(2) Credited interest rates, including any bonus;
(3) Benefits;
(4) Values;
(5) Non-interest-based credits;
(6) Charges; or
(7) Elements of formulas used to determine any of the above,
which are subject to company discretion and are not guaranteed at issue. An element is considered non-guaranteed if any of the underlying non-guaranteed elements are used in its calculation.
"Structured settlement annuity" means:
(1) A "qualified funding asset" as defined in section 130(d) of the Internal Revenue Code; or
(2) An annuity that would be a "qualified funding asset" but for the fact that it is not owned by an assignee under a qualified assignment. [L 2006, c 71, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-602 Applicability of standards for disclosure.

§431:10D-602 Applicability of standards for disclosure.
This part shall apply to all group and individual annuity contracts and certificates, except:
(1) Registered or non-registered variable annuities or other registered products;
(2) Immediate and deferred annuities that contain no non-guaranteed elements;
(3) Annuities used to fund:
(A) An employee pension plan that is covered by the Employee Retirement Income Security Act;
(B) A plan under section 401(a), 401(k), or 403(b) of the Internal Revenue Code, where the plan, for purposes of the Employee Retirement Income Security Act, is established or maintained by an employer;
(C) A governmental or church plan defined in section 414 of the Internal Revenue Code;
(D) A deferred compensation plan of a state or any of its political subdivisions under section 457 of the Internal Revenue Code;
(E) A tax-exempt organization under section 457 of the Internal Revenue Code; or
(F) A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;
provided that this part shall apply to annuities used to fund a plan or arrangement that is funded solely by contributions that an employee elects to make on a pre-tax or after-tax basis, and where the insurance company has been notified that plan participants may choose from among two or more fixed annuity providers and there is a direct solicitation of an individual employee by a producer for the purchase of an annuity contract.
For the purposes of this paragraph, "direct solicitation" does not include any meeting held by a producer solely for the purpose of educating or enrolling employees in the plan or arrangement;
(4) Structured settlement annuities;
(5) Funding agreements; and
(6) Charitable gift annuities issued pursuant to paragraphs (1) to (4) of section 431:1-204(c). [L 2006, c 71, pt of §1]
Revision Note
Subsection designation deleted pursuant to §23G-15.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-604 Report to contract owners.

§431:10D-604 Report to contract owners.
For annuities in the payout period with changes in non-guaranteed elements, and for the accumulation period of a deferred annuity, the insurer shall at least annually provide each contract owner with a report of the status of the contract that contains at least the following information:
(1) The beginning and ending dates of the current report period;
(2) The accumulation and cash surrender value, if any, at the end of the previous report period and at the end of the current report period;
(3) The total amounts, if any, that have been credited, charged to the contract value, or paid during the current report period; and
(4) The amount of outstanding loans, if any, as of the end of the current report period. [L 2006, c 71, pt of §1]
Revision Note
Subsection designation deleted pursuant to §23G-15.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-605 Penalties.

§431:10D-605 Penalties.
In addition to any other penalties provided by law, violation of any requirement of this part is an unfair method of competition or unfair or deceptive act or practice under section 431:13-102. [L 2006, c 71, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-621 Scope.

Cross References
Variable contracts, see §431:10D-118.
§431:10D-621 Scope.
(a) This part applies to any recommendation or sale of an annuity.
(b) This part does not apply to transactions involving:
(1) Direct-response solicitations where there is no recommendation based on information collected from the consumer pursuant to this part; or
(2) Contracts used to fund:
(A) An employee pension or welfare benefit plan that is covered by the Employee Retirement Income Security Act of 1974, P.L. 93-406, as amended;
(B) A plan described by section 401(a), 401(k), 403(b), 408(k), or 408(p) of the Internal Revenue Code of 1986, as amended, if established or maintained by an employer;
(C) A government plan or church plan defined in section 414 of the Internal Revenue Code of 1986, as amended, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax exempt organization subject to section 457 of the Internal Revenue Code of 1986, as amended; or
(D) A non-qualified deferred compensation arrangement established or maintained by an employer or plan sponsor;
(3) Settlements of or assumptions of liabilities associated with personal injury litigation or any dispute or claim resolution process; or
(4) Formal prepaid funeral contracts.
(c) Nothing in this part shall be construed to affect in any manner any provision of chapter 485A. [L 2007, c 257, pt of §2, § §4, 5, 9; am L 2011, c 108, §3; am L 2022, c 58, pt of §7]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-624 Compliance mitigation; penalties; enforcement.

§431:10D-624 Compliance mitigation; penalties; enforcement.
(a) An insurer shall be responsible for compliance with this part. If a violation occurs because of the action or inaction of the insurer or its producer, the commissioner may order:
(1) An insurer to take reasonably appropriate corrective action for any consumer harmed by a failure to comply with this part by the insurer, an entity contracted to perform the insurer's supervisory duties, or by the producer;
(2) A business entity, general agency, independent agency, or the producer to take reasonably appropriate corrective action for any consumer harmed by the producer's violation of this part; and
(3) Appropriate penalties and sanctions.
(b) Any penalty applicable to an insurer, a managing general agent, independent agencies, or a producer under article 13 of chapter 431 may be applicable to a violation of this part; provided that penalties may be reduced or eliminated if corrective action for the consumer was taken promptly after a violation was discovered or if the violation was not part of a pattern or practice.
(c) The authority to enforce compliance with this part is vested exclusively with the commissioner. [L 2007, c 257, pt of §2; am L 2011, c 108, §6; am L 2022, c 58, pt of §7]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-625 Recordkeeping.

§431:10D-625 Recordkeeping.
Insurers, managing general agents, independent agencies, and producers shall maintain or make available to the commissioner records of the information collected from the consumer; disclosures made to the consumer, including summaries of oral disclosures; and other information used in making the recommendations that were the basis for insurance transactions for five
years after the insurance transaction has been completed by the insurer. An insurer may maintain documentation on behalf of a producer. [L 2007, c 257, pt of §2; am L 2022, c 58, pt of §7]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-628 Disclosure obligation of insurers and producers.

§431:10D-628 Disclosure obligation of insurers and producers.
(a) Before the recommendation or sale of an annuity, the producer shall prominently disclose to the consumer on a form substantially similar to Appendix A of the Spring 2020, National Association of Insurance Commissioners Suitability in Annuity Transactions Model Regulation:
(1) A description of the scope and terms of the relationship with the consumer and the role of the producer in the transaction;
(2) An affirmative statement on whether the producer is licensed and authorized to sell the following products:
(A) Fixed annuities;
(B) Fixed indexed annuities;
(C) Variable annuities;
(D) Life insurance;
(E) Mutual funds;
(F) Stocks and bonds; and
(G) Certificates of deposit;
(3) An affirmative statement describing the insurers for whom the producer is authorized, contracted, appointed, or otherwise able to sell insurance products, using the following descriptions:
(A) From one insurer;
(B) From two or more insurers; or
(C) From two or more insurers, although primarily contracted with one insurer;
(4) A description of the sources and types of cash compensation and non-cash compensation to be received by the producer, including whether the producer is to be compensated for the sale of a recommended annuity by commission as part of premium or other remuneration received from the insurer, intermediary, or other producer or by fee as a result of a contract for advice or consulting services; and
(5) A notice of the consumer's right to request additional information regarding cash compensation as described in subsection (b).
(b) Upon request of the consumer or the consumer's designated representative, the producer shall disclose:
(1) A reasonable estimate of the amount of cash compensation to be received by the producer, which may be stated as a range of amounts or percentages; and
(2) Whether the cash compensation is a one-time or multiple occurrence amount, and, if a multiple occurrence amount, the frequency and amount of the occurrence, which may be stated as a range of amounts or percentages.
(c) Before or at the time of the recommendation or sale of an annuity, the producer shall have a reasonable basis to believe the consumer has been informed of various features of the annuity, such as the potential surrender period and surrender charge; potential tax penalty if the consumer sells, exchanges, surrenders, or annuitizes the annuity; mortality and expense fees; investment advisory fees; any annual fees; potential charges for and features of riders or other options of the annuity; limitations on interest returns; potential changes in non-guaranteed elements of the annuity; insurance and investment components; and market risk. [L 2022, c 58, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-629 Conflicts of interest obligation of insurers and producers.

§431:10D-629 Conflicts of interest obligation of insurers and producers.
A producer shall identify and avoid or reasonably manage and disclose material conflicts of interest, including material conflicts of interest related to an ownership interest. [L 2022, c 58, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-630 Documentation obligation of insurers and producers.

§431:10D-630 Documentation obligation of insurers and producers.
(a) A producer shall at the time of recommendation or sale:
(1) Make a written record of any recommendation and the basis for the recommendation subject to this part;
(2) Obtain a consumer signed statement on a form substantially similar to Appendix B of the Spring 2020, National Association of Insurance Commissioners Suitability in Annuity Transactions Model Regulation, documenting:
(A) A consumer's refusal to provide the consumer profile information, if any; and
(B) A consumer's understanding of the ramifications of not providing the consumer's consumer profile information or providing insufficient consumer profile information; and
(3) Obtain a consumer signed statement on a form substantially similar to Appendix C of the Spring 2020, National Association of Insurance Commissioners Suitability in Annuity Transactions Model Regulation, acknowledging the annuity transaction is not recommended if a consumer decides to enter into an annuity transaction that is not based on the producer's recommendation.
(b) Any requirement applicable to a producer under this part shall apply to every producer who has exercised material control or influence in the making of a recommendation and has received direct compensation as a result of the recommendation or sale, regardless of whether the producer has had any direct contact with the consumer. Activities such as providing or delivering marketing or educational materials, product wholesaling or other back office product support, and general supervision of a producer do not, in and of themselves, constitute material control or influence. [L 2022, c 58, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-641 Purpose.

Note
Part heading amended by L 2012, c 34, §10.
§431:10D-641 Purpose.
The purpose of this part is to protect consumers from misleading and fraudulent marketing practices with respect to the use of senior-specific certifications and professional designations in the solicitation of, sale of, or purchase of, or advice given in connection with a life insurance or annuity product. [L 2011, c 108, pt of §7]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-652 Purpose.

§431:10D-652 Purpose.
The purpose of this part is to require recognition of the escheat or unclaimed property statutes of this State and require the complete and proper disclosure, transparency, and accountability relating to any method of payment for life insurance death benefits regulated by the State's insurance commissioner. [L 2018, c 202, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10D-653 Definitions.

§431:10D-653 Definitions.
As used in this part, the following definitions apply:
"Contract" means an annuity contract; provided that the term "contract" shall not include an annuity used to fund an employment-based retirement plan or program where:
(1) The insurer does not perform the record keeping services; or
(2) The insurer is not committed by terms of the annuity contract to pay death benefits to the beneficiaries of specific plan participants.
"Death master file" means the United States Social Security Administration's death master file or any other database or service that is at least as comprehensive as the United States Social Security Administration's death master file for determining that a person has reportedly died.
"Death master file match" means a search of the death master file that results in a match of the social security number or the name and date of birth of an insured, annuity owner, or retained asset account holder.
"Knowledge of death" means:
(1) Receipt of an original or valid copy of a certified death certificate; or
(2) A death master file match validated by the insurer in accordance with section 431:10D-654(a)(1)(A).
"Policy" means any policy or certificate of life insurance that provides a death benefit; provided that the term "policy" shall not include:
(1) Any policy or certificate of life insurance that provides a death benefit under an employee benefit plan:
(A) Subject to the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001, et. seq.), as periodically amended; or
(B) Under any federal employee benefit program;
(2) Any policy or certificate of life insurance that is used to fund a pre-need funeral contract or prearrangement;
(3) Any policy or certificate of credit life or accidental death insurance; or
(4) Any policy issued to a group master policyholder for which the insurer does not provide record keeping services.
"Record keeping services" means those circumstances under which the insurer has agreed with a group policy or contract customer to be responsible for obtaining, maintaining, and administering in its own or its agents' systems information about each individual insured under an insured's group insurance contract, or a line of coverage thereunder, at least the following information:
(1) Social security number or name and date of birth;
(2) Beneficiary designation information;
(3) Coverage eligibility;
(4) Benefit amount; and
(5) Premium payment status.
"Retained asset account" means any mechanism whereby the settlement of proceeds payable under a policy or contract is accomplished by the insurer or an entity acting on behalf of the insurer depositing the proceeds into an account with check or draft writing privileges, where those proceeds are retained by the insurer or its agent, pursuant to a supplementary contract not involving annuity benefits other than death benefits. [L 2018, c 202, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10E-101 Insurable interest in property required.

Note
Sections 431:10E-101 to 431:10E-103 designated as Part I by L 2012, c 80, §2.
§431:10E-101 Insurable interest in property required.
No contract of insurance on property or of any interest therein or arising therefrom shall be enforceable except for the benefit of persons having an insurable interest in the property insured. Insurable interest means any lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage. [L 1987, c 347, pt of §2]