reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9B-104 Books and records; reinsurance intermediary-brokers.

§431:9B-104 Books and records; reinsurance intermediary-brokers.
(a) For at least ten years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, the reinsurance intermediary-broker shall keep a complete record for each transaction showing:
(1) The type of contract, limits, underwriting restrictions, classes or risks, and territory;
(2) Period of coverage, including effective and expiration dates, cancellation provisions, and notice required for cancellation;
(3) Reporting and settlement requirements of balances;
(4) Rate used to compute the reinsurance premium;
(5) Names and addresses of assuming reinsurers;
(6) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary-broker;
(7) Related correspondence and memoranda;
(8) Proof of placement;
(9) Details regarding retrocessions handled by the reinsurance intermediary-broker including the identity of retrocessionaires and percentage of each contract assumed or ceded;
(10) Financial records, including but not limited to, premium and loss accounts; and
(11) When the reinsurance intermediary-broker procures a reinsurance contract on behalf of a licensed ceding insurer:
(A) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(B) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
(b) The insurer will have access and the right to copy and audit all accounts and records maintained by the reinsurance intermediary-broker related to its business in a form usable by the insurer. [L 1992, c 176, pt of §6; am L 1993, c 6, §18]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9B-105 Duties of insurers utilizing the services of a reinsurance intermediary-broker.

§431:9B-105 Duties of insurers utilizing the services of a reinsurance intermediary-broker.
(a) An insurer shall not engage the services of any person, firm, association, or corporation to act as a reinsurance intermediary-broker on its behalf unless the person, firm, association, or corporation is licensed as required by section 431:9B-102.
(b) An insurer may not employ an individual who is employed by a reinsurance intermediary-broker with which it transacts business, unless the reinsurance intermediary-broker is under common control with the insurer and subject to article 11.
(c) The insurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-broker with which it transacts business. [L 1992, c 176, pt of §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9B-107 Prohibited acts.

§431:9B-107 Prohibited acts.
The reinsurance intermediary-manager shall not:
(1) Cede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary-manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. The guidelines shall include a list of reinsurers with which those automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules;
(2) Commit the reinsurer to participate in reinsurance syndicates;
(3) Appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which the producer is appointed;
(4) Without prior approval of the reinsurer, pay or commit the reinsurer to pay, a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one per cent of the reinsurer's policyholder's surplus as of December 31 of the last complete calendar year;
(5) Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to the reinsurer;
(6) Jointly employ an individual who is employed by the reinsurer unless the reinsurance intermediary-manager is under common control with the reinsurer subject to article 11; or
(7) Appoint a sub-reinsurance intermediary-manager. [L 1992, c 176, pt of §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9B-108 Duties of reinsurers utilizing the services of a reinsurance intermediary-manager.

§431:9B-108 Duties of reinsurers utilizing the services of a reinsurance intermediary-manager.
(a) A reinsurer shall not engage the services of any person, firm, association, or corporation to act as a reinsurance intermediary-manager on its behalf unless the person, firm, association, or corporation is licensed as required by section 431:9B-102(b).
(b) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-manager which the reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the commissioner.
(c) If a reinsurance intermediary-manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary-manager. This opinion shall be in addition to any other required loss reserve certification.
(d) Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the reinsurance intermediary-manager.
(e) Within thirty days of termination of a contract with a reinsurance intermediary-manager, the reinsurer shall provide written notification of the termination to the commissioner.
(f) A reinsurer shall not appoint to its board of directors any officer, director, employee, controlling shareholder, or subagent of its reinsurance intermediary-manager; provided that this subsection shall not apply to relationships governed by article 11. [L 1992, c 176, pt of §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9B-109 Examination authority.

§431:9B-109 Examination authority.
(a) A reinsurance intermediary shall be subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts, and records of the reinsurance intermediary in a form usable by the commissioner.
(b) A reinsurance intermediary-manager may be examined as if it were the reinsurer. [L 1992, c 176, pt of §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9B-110 Penalties and liabilities.

§431:9B-110 Penalties and liabilities.
(a) After a hearing conducted in accordance with section 431:2-308, a reinsurance intermediary, insurer, or reinsurer found by the commissioner to be in violation of any provisions of this article shall:
(1) For each separate violation, pay a penalty in an amount not exceeding $5,000;
(2) Be subject to revocation or suspension of its license; and
(3) If a violation was committed by a reinsurance intermediary, the reinsurance intermediary shall make restitution to the insurer, reinsurer, rehabilitator, or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to the violation.
(b) The decision, determination, or order of the commissioner pursuant to subsection (a) shall be subject to judicial review pursuant to chapter 91 and section 431:2-308.
(c) Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided in the insurance law.
(d) Nothing contained in this article is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, creditors, or other third parties or confer any rights on those persons. [L 1992, c 176, pt of §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9C-101 Definitions.

§431:9C-101 Definitions.
For purposes of this article:
"Actuary" means a person who is a member in good standing of the American Academy of Actuaries.
"Insurer" means any person, firm, association, or corporation duly licensed in this State as an insurance company pursuant to section 431:3-201.
"Managing general agent" means any person, firm, association, or corporation that manages all or part of the insurance business of an insurer including the management of a separate division, department, or underwriting office and acts as an agent for the insurer regardless of whether the person, firm, association, or corporation is known as a managing general agent, manager, or similar term and who, with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five per cent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year and adjusts or pays claims in excess of $10,000 or negotiates reinsurance on behalf of the insurer. Notwithstanding the specified requirements, the following persons shall not be considered managing general agents for purposes of this article:
(1) An employee of the insurer;
(2) A United States manager of the United States branch of an alien insurer;
(3) An underwriting manager who, pursuant to contract, manages all the insurance operations of the insurer, is under common control with the insurer subject to article 11, and whose compensation is not based on the volume of premiums written;
(4) The attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under a power of attorney; and
(5) Any person, firm, association, or corporation domiciled in the State, authorized to do business only in the State, and acting as a managing general agent for an insurer licensed and conducting business only in the State.
"Producer" has the same meaning as in section 431:9A-102.
"Underwrite" means the authority to accept or reject risk on behalf of the insurer. [L 2002, c 155, pt of §2; am L 2010, c 116, §1(9); am L 2011, c 81, §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9C-102 Licensure.

§431:9C-102 Licensure.
(a) No person, firm, association, or corporation shall act as a managing general agent, with respect to risks located in this State for an insurer licensed in this State, unless licensed as a producer in this State.
(b) No person, firm, association, or corporation shall act as a managing general agent representing an insurer domiciled in this State with respect to risks located outside this State unless licensed as a producer in this State. [L 2002, c 155, pt of §2; am L 2003, c 212, §70; am L 2006, c 189, §7; am L 2010, c 116, §1(10)]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9C-104 Duties of insurers.

§431:9C-104 Duties of insurers.
(a) An insurer shall have on file an independent financial examination in a form acceptable to the commissioner of each managing general agent with whom it has done business.
(b) If a managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of an independent actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent. The opinion required by this subsection shall be in addition to any other required loss reserve certification required by this chapter.
(c) The insurer shall conduct at least semiannually an on-site review of the underwriting and claims processing operations of the managing general agent.
(d) Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who shall not be affiliated with the managing general agent.
(e) The insurer shall notify the commissioner in writing within thirty days of entering into or terminating a contract with a managing general agent. Notice of the appointment of a managing general agent shall include a statement of the duties that the managing general agent is expected to perform on behalf of the insurer, the lines of insurance for which the managing general agent shall be authorized to act, and any other information the commissioner may require.
(f) An insurer shall review its books and records each quarter to determine if any producer has become a managing general agent of the insurer. If the insurer determines that a producer has become a managing general agent of the insurer, the insurer shall promptly notify the producer and the commissioner and the insurer and producer shall both fully comply with this article within thirty days.
(g) An insurer shall not appoint to its board of directors an officer, director, employee, subagent, or controlling shareholder of any of its managing general agents; provided that this subsection shall not apply to relationships governed by article 11.
(h) The insurer shall keep the bond and the errors and omissions policy required by section 431:9C-103 on file for review by the commissioner or other applicable regulatory agency. [L 2002, c 155, pt of §2; am L 2010, c 116, §1(12)]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9C-105 Examination authority.

§431:9C-105 Examination authority.
The acts of the managing general agent are considered to be the acts of the insurer on whose behalf it is acting. A managing general agent may be examined pursuant to article 2 as if the managing general agent was the insurer. [L 2002, c 155, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9C-106 Penalties and liabilities.

§431:9C-106 Penalties and liabilities.
(a) If after a hearing conducted in accordance with section 431:2-308 and chapter 91, the commissioner finds that any person has violated any provision of this article, the commissioner may order any or all of the following:
(1) For each separate violation, a fine in an amount not less than $500 and not more than $50,000, pursuant to section 431:3-221;
(2) Revocation or suspension of the managing general agent's license; and
(3) The managing general agent to reimburse the insurer or the rehabilitator or liquidator of the insurer for any losses incurred by the insurer caused by a violation of this chapter by the managing general agent.
(b) Nothing contained in this section shall affect the right of the commissioner to impose any other penalties as provided by law.
(c) Nothing contained in this article is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, and auditors. [L 2002, c 155, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9J-102 License required; application.

§431:9J-102 License required; application.
(a) No person shall act as or hold out to be an administrator in this State without a license as an administrator issued by the commissioner.
(b) An administrator shall apply to the commissioner on a form prescribed by the commissioner and shall include the following:
(1) A nonrefundable fee as set forth in section 431:7-101;
(2) All basic organizational documents of the administrator, including any articles of incorporation, articles of association, partnership agreement, trade name certificate, trust agreement, shareholder agreement, and other applicable documents and all amendments to the documents;
(3) The bylaws, rules, regulations, or similar documents regulating the internal affairs of the administrator;
(4) The names, addresses, official positions, and professional qualifications of the individuals responsible for the conduct of affairs of the administrator, including but not limited to all members of the board of directors, board of trustees, executive committee, or other governing board or committee, the principal officers in the case of a corporation, or the partners in the case of a partnership;
(5) Annual financial statements for the two most recent years that prove the applicant has a positive net worth and information the commissioner may require to review the current financial condition of the applicant; and
(6) Any other pertinent information the commissioner may require.
(c) An administrator licensee or applicant for licensure shall notify the commissioner within thirty days of any material change in its ownership, control, contact person for the administrator, or any other fact or circumstance affecting the licensee's or applicant's qualification for licensure.
(d) If an administrator employs or has contracted individuals to sell, solicit, or negotiate insurance business, the employees or contracted individuals shall first be licensed as producers. An administrator who intends to directly solicit insurance contracts or otherwise act as a producer shall first be licensed as an insurance producer.
(e) The commissioner may refuse to issue a license if the commissioner determines, after notice and hearing pursuant to section 431:2-308 and chapter 91, that the administrator is not competent, trustworthy, financially responsible, or of good personal and business reputation, or has had an application for an insurance license denied or revoked for cause within the past five years.
(f) The license shall be renewable or extendable biennially. The license shall remain in effect so long as the fees set forth in section 431:7-101 are paid.
(g) The commissioner may contract with nongovernmental entities, including the National Association of Insurance Commissioners or any affiliations or subsidiaries that the National Association of Insurance Commissioners oversees, to perform any ministerial functions relating to the licensure of administrators. [L 2019, c 72, pt of §1; am L 2021, c 111, §13]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9J-103 Surety bond required.

§431:9J-103 Surety bond required.
(a) Before the issuance of the administrator license, the administrator shall file with the commissioner, and maintain in force while so licensed, a surety bond of at least $100,000, in the form and penal sum acceptable to the commissioner, and shall provide that the bond may not be canceled or otherwise terminated until two years have elapsed from the last day the applicant was an administrator, unless the commissioner has given prior written consent. The surety bond shall be undertaken and may be enforced in the name of "Commissioner of Insurance, State of Hawaii".
(b) For each subsequent annual report filing, the surety bond amount shall be at least $100,000 and filed in accordance with section 431:9J-112. [L 2019, c 72, pt of §1; am L 2022, c 58, §5]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9J-104 Written agreement required.

§431:9J-104 Written agreement required.
(a) An administrator shall have a written agreement between the administrator and insurer that contains all requirements of this article, except those that do not apply to administrator functions.
(b) The written agreement shall include a provision with respect to underwriting or other standards pertaining to the business underwritten by the insurer.
(c) The written agreement shall be retained as part of the official records of the administrator and the insurer for the duration of their agreement and five years thereafter.
(d) When an insurance policy is issued to a trustee, the administrator shall furnish the insurer a copy of the trust agreement and any amendments to it. The trust agreement shall be retained as part of the official records of the administrator and the insurer for the duration of the insurance policy and five years thereafter. [L 2019, c 72, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9J-105 Effect of payments to administrator.

§431:9J-105 Effect of payments to administrator.
(a) Payment to the administrator of any insurance premiums or charges by or on behalf of the insured shall be deemed received by the insurer.
(b) Payment of return premiums or claims by the insurer to the administrator shall not be deemed payment to the insured until the insured receives the payment.
(c) This section does not limit any right of the insurer against the administrator resulting from failure of the administrator to make payments to the insurer or insured. [L 2019, c 72, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9J-106 Recordkeeping required; commissioner's access to records.

§431:9J-106 Recordkeeping required; commissioner's access to records.
(a) An administrator shall maintain and make available to the insurer complete books and records of all transactions between the administrator, insurers, and insureds. The books and records shall be maintained in accordance with prudent standards of insurance recordkeeping and for the duration of the written agreement and five years thereafter.
(b) The commissioner shall have access to the books and records for examination, audit, and inspection. Any documents, materials, or other information in the possession or control of the commissioner that are furnished by an administrator, payor, or insurance producer or an employee or agent thereof acting on behalf of the administrator, payor, or insurance producer, or obtained by the commissioner in an investigation shall be confidential by law and privileged and shall not be subject to chapters 92 and 92F, subpoena, and discovery or admissible in evidence in any private civil action.
The commissioner is authorized to use such documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner's official duties.
(c) An administrator shall retain the right to continuing access to the books and records to fulfill its contractual obligations to the insurer and insureds, subject to any restrictions in the written agreement. [L 2019, c 72, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9J-108 Fiduciary duties of administrator; payment of claims by administrator.

§431:9J-108 Fiduciary duties of administrator; payment of claims by administrator.
(a) The administrator shall hold in a fiduciary capacity all charges, claim payments, or premiums that the administrator collects for or on behalf of an insurer and all return premiums that the administrator receives from the insurer. These funds shall be immediately remitted to the person entitled to them or shall be deposited promptly in a fiduciary account established and maintained by the administrator in a federally insured financial institution.
(b) If charges, claim payments, or premiums deposited in a fiduciary account have been collected for or on behalf of more than one insurer, the administrator shall keep records clearly recording the deposits in and withdrawals from the account for or on behalf of each insurer. The administrator shall keep copies of the records and, upon request of an insurer, shall furnish the insurer with copies of records pertaining to the deposits and withdrawals.
(c) An administrator shall not pay claims by withdrawals from the fiduciary account in which premiums or charges are deposited.
(d) The written agreement shall provide that withdrawals from a fiduciary account shall be made only for:
(1) Remittance to an insurer entitled to remittance;
(2) Deposit in an account maintained in the name of the insurer;
(3) Transfer to and deposit in a claims-paying account, with claims to be paid as provided in subsection (e);
(4) Payment to a group policyholder for remittance to the insurer entitled to remittance;
(5) Payment to the administrator of its commission, fees, or charges; and
(6) Remittance of return premiums to the person entitled to return premiums.
(e) All claims the administrator pays from funds collected for or on behalf of an insurer shall be paid only as authorized by the insurer. [L 2019, c 72, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9J-109 Compensation of administrator.

§431:9J-109 Compensation of administrator.
Compensation to an administrator for adjusting or settling claims shall not be increased contingent on claim experience. This section shall not prevent the compensation of an administrator from being based on premiums or charges collected or number of claims paid or processed. [L 2019, c 72, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9J-110 Written notice to insureds required.

§431:9J-110 Written notice to insureds required.
(a)
When the services of an administrator are used, the administrator shall provide written notice approved by the insurer to insureds, advising the insureds of the identity of and relationship between the administrator, insurer, and insured.
(b) When an administrator collects funds, the administrator shall identify the reason for collecting each item and show each item separately from the premium. Additional charges shall not be made for services to the extent the insurer has already paid for those services.
(c) The administrator shall disclose to the insurer all charges, fees, and commissions the administrator receives from services the administrator provides the insurer, including any fees or commissions paid by insurers providing reinsurance. [L 2019, c 72, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9J-111 Delivery of written information to insured.

§431:9J-111 Delivery of written information to insured.
Any policies, certificates, booklets, termination notices, or other written communications delivered by the insurer to the administrator for delivery to the insured, shall be delivered by the administrator promptly after receipt of instructions from the insurer to deliver them. [L 2019, c 72, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9J-112 Annual report required.

§431:9J-112 Annual report required.
(a) An administrator shall file an annual report for the preceding calendar year with the commissioner on or before March 1 of each year, in a form and manner prescribed by the commissioner.
(b) The annual report shall include:
(1) The names and addresses of all insurers with which the administrator had an agreement during the preceding calendar year;
(2) A renewal certificate for the surety bond required in section 431:9J-103 and an updated surety bond form, if needed; and
(3) An audited financial statement prepared by an independent certified public accountant. [L 2019, c 72, pt of §1; am L 2022, c 58, §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9N-101 Definitions.

§431:9N-101 Definitions.
As used in this article:
"Bail agent" means a licensed insurance producer under article 9A who is appointed by an authorized surety insurer, furnishes bail for compensation in any court in this State, and has the power of attorney to execute or countersign bail bonds in connection with judicial proceedings. "Bail agent" shall not include a person who is a full-time salaried officer or employee of an insurer or a person who pledges United States currency, a United States postal money order, a cashier's check, or other property as security for a bail bond in connection with a judicial proceeding, whether for compensation or otherwise.
"On the board" means that the name of a bail agent has been publicly posted or disseminated by a court as being ineligible to write bail bonds. [L 2008, c 134, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9N-102 License denial, nonrenewal, suspension, or revocation; trade name bar.

§431:9N-102
License denial, nonrenewal, suspension, or revocation; trade name bar.
In addition to the authority granted by section 431:9A-112, the commissioner may deny, place on probation, suspend, revoke, or refuse to issue or renew a bail agent's license, may permanently retire or bar subsequent use of a trade name, and may levy a civil fine or penalty in accordance with articles 2 and 9A, or take any combination of these actions, for any of the following causes:
(1) Failure to satisfy, pay, or otherwise discharge a bail forfeiture judgment after the bail agent's name is on the board for more than forty-five consecutive days for the same forfeiture;
(2) Failure to satisfy, pay, or otherwise discharge a final, nonappealable bail forfeiture judgment within sixty days following notice of entry of judgment;
(3) Failure to report, to preserve without use and retain separately, or to return collateral received as security on any bond to the principal or depositor of the collateral;
(4) Failure to pay a final, nonappealable judgment award for failure to return or repay collateral received to secure a bond;
(5) Continuing execution of bail bonds in any court in this State while on the board, where the bail forfeiture judgment that resulted in placement on the board has not been paid, stayed, vacated, exonerated, or otherwise discharged; or
(6) Payment, directly or indirectly, of any commission, service fee, brokerage, or other valuable consideration to any person selling, soliciting, or negotiating bail within this State unless, at the time the services were performed, the person was duly licensed for the performance of the services. [L 2008, c 134, pt of §1; am L 2010, c 116, §1(13); am L 2019, c 70, §13]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9N-103 Fiduciary responsibilities.

§431:9N-103 Fiduciary responsibilities.
(a) In addition to the requirements of section 431:9A-123.5, bail agents shall have the responsibilities of a trustee for all premium, return premium funds, and collateral or security received or collected under this article.
(b) All premiums received, less commissions if authorized, shall be remitted to the insurer on or before the contractual due date or, if there is no contractual due date, within forty-five days after receipt.
(c) All returned premiums received from or credited by insurers to the account of the bail agent shall be remitted to or credited to the account of the person entitled thereto within thirty days after the receipt or credit.
(d) An insurer having knowledge that a bail agent has failed to account for any collected premium to the insurer more than forty-five days after the contractual due date or, if there is no contractual due date, more than ninety days after receipt, shall promptly report the failure to the commissioner in writing.
(e) Every insurer shall remit unearned premium funds to the person entitled thereto or shall otherwise credit the account of the bail agent as soon as is practicable after entitlement to the premium funds has been established, but in no event more than forty-five days after the effective date of any cancellation or termination effected by the insurer or after the date of entitlement thereto, as established by notification of cancellation or of termination or as otherwise established. A bail agent having knowledge of a failure on the part of any insurer to comply with this subsection shall promptly report the failure to the commissioner in writing.
(f) No bail agent shall commingle premiums belonging to insurers and return premiums received or held by the bail agent or persons entitled to such funds with the bail agent's personal funds or with any other funds except those directly connected with the bail agent's bail business. [L 2008, c 134, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9N-104 Bail agent not to act as attorney.

§431:9N-104 Bail agent not to act as attorney.
A bail agent who is also an attorney shall not represent a person to whom the attorney has furnished bail for compensation in any proceeding for which the attorney has furnished bail. The commissioner may place on probation, suspend, revoke, or refuse to renew a bail agent's license and may levy a civil fine or penalty in accordance with articles 2 and 9A, or any combination of these actions, for violation of this section. [L 2008, c 134, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-101 Scope; effective dates.

§431:10-101 Scope; effective dates.
This part shall apply to all contracts filed after June 30, 1983. No contract shall be delivered or issued for delivery in this State after June 30, 1984, unless the contract meets the requirements of this part or has been approved by the commissioner. Any contract approved or permitted to be issued prior to July 1, 1984, is exempt from refiling for approval and may continue to be lawfully delivered or issued for delivery in this State provided a list of such contracts identified by contract number and accompanied by a signed certificate in the manner prescribed by section 431:10-107 is filed with the commissioner. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-102 Definitions.

§431:10-102 Definitions.
As used in this part:
"Contract" means any policy of life, accident and health or sickness, credit life, credit disability, homeowners, and motor vehicle insurance covering personally owned or personally leased private passenger motor vehicles prepared for delivery by an insurer.
"Flesch reading ease test" means the test set forth in section 431:10-106.
"Insurer" means any company, corporation, exchange, society, or association organized on the stock, mutual, assessment, or fraternal plan of insurance and authorized under the insurance laws of this State to issue life, disability, credit life, credit disability, homeowners, and motor vehicle insurance, including but not limited to fraternal benefit societies, nonprofit health service corporations, nonprofit hospital service corporations, health maintenance organizations, and mutual benefit societies.
"Text" includes all printed material in the contract except:
(1) The insurer's name and address;
(2) The name, number, or title of the contract;
(3) The table of contents or index;
(4) Any captions or subcaptions;
(5) Any specification pages, schedules, or tables;
(6) Any language required by federal law, regulation, or agency interpretation or any written certification to exclude such language;
(7) Any language required by any collective bargaining agreement;
(8) Any medical terminology; and
(9) Any definitions. [L 1987, c 347, pt of §2; am L 1997, c 251, §11; am L 2015, c 63, §7]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-103 Exemptions of certain contracts.

§431:10-103 Exemptions of certain contracts.
The provisions of this part shall not apply to:
(1) Any contract which is a security subject to federal jurisdiction;
(2) Any group contract covering a group of one thousand or more lives at date of issue, other than a group credit life or credit disability contract, except that any individual certificate issued under a group contract delivered or issued for delivery in this State shall not be exempt;
(3) Any group annuity contract which funds a pension, profit sharing, or deferred compensation plan;
(4) Any form used in connection with, as a conversion from, as an addition to, or in exchange under a contractual provision for a contract delivered or issued for delivery on a form approved or permitted to be issued prior to July 1, 1984; or
(5) The renewal of a contract delivered or issued for delivery prior to July 1, 1984. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-104 General readability requirements.

§431:10-104 General readability requirements.
In addition to any other requirements of law, no contract shall be delivered or issued for delivery in this State unless:
(1) The text is in plain language and achieves a minimum score of forty on the Flesch reading ease test or an equivalent score on any other comparable test prescribed by the commissioner under section 431:10-105(a);
(2) The contract is printed, except for specification pages, schedules, and tables, in not less than ten-point type;
(3) The style, arrangement, and general appearance of the contract give no undue prominence to any endorsements, riders, or other portions of the text; and
(4) A table of contents or an index of principal sections is provided with the contract when the text consists of more than three thousand words printed on three or less pages or when the text has more than three pages, regardless of the total number of printed words. [L 1987, c 347, pt of §2; am L 2016, c 141, §5; am L 2019, c 70, §14]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-105 Required reading test; authorization and availability.

§431:10-105 Required reading test; authorization and availability.
(a) Every insurer shall use the Flesch reading ease test to determine the readability of any contract. Whenever the commissioner determines that the Flesch reading ease test is inappropriate for the purposes of determining readability, the commissioner shall prescribe an alternative test comparable in result to the Flesch reading ease test to be used by the insurer.
(b) The commissioner shall provide each insurer with a copy of the Flesch reading ease test. Whenever an alternative test is prescribed, the commissioner shall provide a copy of the test to each insurer, accompanied by a set of instructions explaining the manner in which such test shall be conducted. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-106 Flesch reading ease test; procedures.

§431:10-106 Flesch reading ease test; procedures.
(a) Whenever the Flesch reading ease test is used, its reading score shall be computed as follows:
(1) The number of words and sentences in the text shall be counted and the total number of words divided by the total number of sentences; and
(2) The resulting figure shall be multiplied by a factor of 1.015; then
(3) The total number of syllables shall be counted and then divided by the total number of words; and
(4) The resulting figure shall be multiplied by a factor of 84.6; then
(5) The figures computed in items (2) and (4) shall be added together and the resulting sum subtracted from 206.835 to yield the Flesch reading ease score.
(b) For the purposes of subsection (a), the following procedures shall be used:
(1) Each contract consisting of ten thousand words or less shall be analyzed in its entirety by the method prescribed in subsection (a);
(2) Each contract consisting of more than ten thousand words may be analyzed by applying the method prescribed in subsection (a) to two, two hundred word samples separated by a minimum of ten printed lines on each page of the contract;
(3) All riders, endorsements, applications, and other forms may be scored with the contract or scored as separate forms;
(4) Numbers and letters, when separated by spaces, a contraction, or a hyphenated word shall be counted as one word;
(5) A unit of words ending with a period, semicolon, or colon, excluding headings and captions, shall be counted as one sentence; and
(6) Whenever an accepted dictionary indicates that a word has two or more acceptable pronunciations, the pronunciation having the fewer number of syllables may be used. Syllable, as used in this paragraph, means a unit of spoken language consisting of one or more letters of a word as divided by an accepted dictionary. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-107 Filing of certificate.

§431:10-107 Filing of certificate.
(a) Every insurer shall file with the commissioner a certificate signed by an officer of the insurer stating that the contract meets the minimum Flesch reading ease score required in section 431:10-104(1).
(b) Whenever the score is lower than the minimum allowed under section 431:10-104(1), the insurer shall file the certificate indicating the lower score and requesting the contract be approved under section 431:10-108. The insurer shall file with the certificate a copy of the contract and additional information necessary to support its request. Each filing requesting an approval pursuant to section 431:10-108 shall be accompanied by a $20 fee payable to the commissioner, which fee shall be deposited in the commissioner's education and training fund.
(c) In determining the accuracy of any certificate, the commissioner may require the insurer to submit a copy of the contract and any additional information. [L 1987, c 347, pt of §2; am L 1989, c 207, §10]
Cross References
Commissioner's education and training fund, see §431:2-214.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-108 Flesch reading ease score; lower score authorized; when.

§431:10-108 Flesch reading ease score; lower score authorized; when.
The commissioner may authorize a score lower than the minimum Flesch reading ease score required in section 431:10-104(1) when the commissioner determines that the lower score:
(1) Will provide a more accurate indication of the readability of the contract;
(2) Is warranted by the nature of a particular contract form, type or class of contract forms; or
(3) Is the result of any language required by state law, regulation or agency interpretation. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-109 Disclosure of health care coverage and benefits.

§431:10-109
Disclosure of health care coverage and benefits.
In order to ensure that all individuals understand their health care options and are able to make informed decisions, all insurers shall provide current and prospective insureds with written disclosure of coverages and benefits, including information on coverage principles and any exclusions or restrictions on coverage.
The information provided shall be current, understandable, and available prior to the issuance of a policy, and upon request after the policy has been issued. [L 1996, c 274, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-201 Scope.

§431:10-201 Scope.
The provisions of this part shall apply to all classes or lines of insurance except:
(1) Ocean marine insurance as defined in section 431:1-211,
(2) Surplus line insurance, as defined in section [431:8-102], and
(3) Life insurance, or accident and health or sickness insurance; provided the contracts are neither issued for delivery in this State nor delivered in this State. [L 1987, c 347, pt of §2; am L 2002, c 155, §38]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-202 Definitions.

§431:10-202 Definitions.
For purposes of this part:
"Insurable interest" includes only interests as follows:
(1) In the case of individuals related closely by blood or by law, a substantial interest engendered by love and affection.
(2) In the case of other persons, a lawful and substantial economic interest in having the life, health, or bodily safety of the individual insured continue, as distinguished from an interest which would arise only by, or would be enhanced in value by, the death, disablement, or injury of the individual insured.
(3) An individual party to a contract or option for the purchase or sale of an interest in a business partnership or firm, or of shares of stock of a close corporation or of an interest in such shares, has an insurable interest in the life of each individual party to the contract and for the purposes of the contract only, in addition to any insurable interest which may otherwise exist as to the life of the individual.
(4) A charitable organization as defined in section 467B-1 has an insurable interest in the life of each proposed insured who joins with said organization in applying for a life insurance policy naming said organization as owner and irrevocable beneficiary.
"Policy" means the written instrument in which a contract of insurance and any endorsement or addendum thereto is set forth. [L 1987, c 347, pt of §2; am L 1988, c 49, §1; am L 2005, c 22, §25]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-203 Power to contract.

§431:10-203 Power to contract.
(a) Any person of competent legal capacity may contract for insurance.
(b) A minor of the age of fifteen years or more, as determined by the nearest birthday, shall be deemed to be competent to:
(1) Contract for any form of life insurance or accident and health or sickness insurance on the minor's own life or body, for the minor's own benefit or for the benefit of the minor's father, mother, spouse, child, brother, sister, or grandparent;
(2) Surrender, make loans upon, or assign any insurance issued at any time upon the minor's life or body, subject to the provisions of the policy;
(3) Give a valid discharge for any benefit accruing or for any money payable under the contract; and
(4) Exercise any of the rights or privileges reserved to the insured in and by any such policy of insurance;
except that such minor, not otherwise emancipated, shall not be bound by any unperformed agreement to pay, by a promissory note or otherwise, any premium on any such insurance contract.
(c) Where any form of life insurance or accident and health or sickness insurance is issued at any time upon the life or body of a minor, unless the policy shall otherwise provide, or unless all of the premiums on the policy are paid by the minor, then until the minor has reached the age of eighteen years, either or both parents of the minor, or in the event of the death of one parent or the divorce of the parents and the custody of the minor being awarded to one parent, then the surviving parent or the custodial parent of the minor shall be authorized to:
(1) Surrender, make loans upon, or assign such insurance;
(2) Give a valid discharge for any benefit accruing or for money payable under the contract; and
(3) Exercise any of the rights or privileges reserved to the insured in and by any such policy of insurance without the order or intervention of any court, or the appointment of a legal guardian.
No insurer shall have any responsibility for or be required to see to the application of the proceeds paid in accordance with this section.
(d) The ownership of or property interest of the insured in any policy of life insurance issued on the life of any minor shall be deemed to be in the minor and shall continue in the minor except if:
(1) The policy shall have lapsed or shall have been surrendered, assigned, or otherwise acted upon in accordance with the provisions of this section while the minor is under the age of eighteen years;
(2) After the insured shall have reached the age of eighteen years, the policy shall have lapsed or shall have been surrendered, assigned, or otherwise acted upon by the insured; or
(3) At the time of issuance, the policy of insurance shall provide otherwise. [L 1987, c 347, pt of §2; am L 2002, c 155, §39]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:10-204 Insurable interest required; personal insurances.

§431:10-204 Insurable interest required; personal insurances.
(a) Any individual of competent legal capacity may procure or effect an insurance contract upon the individual's own life or body for the benefit of any person.
(b) No person shall procure or cause to be procured any insurance contract upon the life or body of another individual unless the benefits under the contract are payable to the individual insured or the insured's personal representatives, or to a person having, at the time the contract was made, an insurable interest in the individual insured.
(c) If the beneficiary, assignee or other payee under any contract made in violation of this section receives from the insurer any benefits under the contract accruing upon the death, disablement or injury of the individual insured, the individual insured or the insured's personal representative may maintain an action to recover the benefits from the person so receiving them. [L 1987, c 347, pt of §2]