2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:9A-115 Notification to commissioner of termination.

§431:9A-115 Notification to commissioner of termination.
(a) An insurer or its authorized representative that terminates the appointment, employment, contract, or other insurance business relationship with a producer shall notify the commissioner within thirty days following the effective date of the termination, using the applicable format prescribed by the commissioner. An insurer or its authorized representative that terminates a producer for one of the reasons set forth in section 431:9A-112, or that has knowledge the producer was found by a court, governmental body, or self-regulatory organization to have engaged in any of the activities in section 431:9A-112, shall use the particular format for that situation as prescribed by the commissioner. Upon the written request of the commissioner, an insurer or its authorized representative that terminates a producer shall provide additional information, documents, records, or other data pertaining to the termination or activity of the producer.
(b) An insurer or its authorized representative that terminates a producer shall promptly notify the commissioner in a format acceptable to the commissioner if, upon further review or investigation, the insurer or its authorized representative discovers additional information that would have been reportable to the commissioner in accordance with subsection (a), had the insurer or its authorized representative known of its existence.
(c) An insurer and its authorized representative that terminate a producer are subject to the following:
(1) Within fifteen days after making the notification required by subsections (a) and (b), the insurer or its authorized representative shall mail a copy of the notification to the producer at the producer's last known address. If the producer is terminated for any of the causes listed in section 431:9A-112, the insurer or its authorized representative shall provide a copy of the notification to the producer at the producer's last known address by certified mail, return receipt requested, postage prepaid or by overnight delivery using a nationally recognized carrier.
(2) Within thirty days after the producer has received the original or additional notification, the producer may file written comments concerning the substance of the notification with the commissioner. The producer, by the same means, shall simultaneously send a copy of the comments to the reporting insurer or its authorized representative, and the comments shall become part of the commissioner's file and shall accompany every copy of a report distributed or disclosed for any reason about the producer as permitted under subsection (e).
(d) Immunity from civil liability for notification applies as follows:
(1) In the absence of actual malice, an insurer, the insurer's authorized representative, a producer, the commissioner, or an organization of which the commissioner is a member and that compiles the information and makes it available to other commissioners or regulatory or law enforcement agencies shall not be subject to civil liability. A civil cause of action of any nature shall not arise against these entities or their respective agents or employees as a result of:
(A) Any statement or information required by or provided pursuant to this section;
(B) Any information relating to any statement that may be requested in writing by the commissioner from an insurer or producer; or
(C) A statement by a terminating insurer or producer to an insurer or producer limited solely to whether a termination under subsection (a) was reported to the commissioner, provided that the propriety of any termination under subsection (a) is certified in writing by an officer or authorized representative of the insurer or producer terminating the relationship.
(2) In any action brought against a person that may have immunity under paragraph (1) for making any statement required by this section or for providing any information relating to any statement that may be requested by the commissioner, the party bringing the action shall plead specifically in any allegation that paragraph (1) does not apply because the person making the statement or providing the information did so with actual malice.
(3) Paragraph (1) or (2) shall not abrogate or modify any existing statutory or common law privileges or immunities.
(e) Confidentiality and privilege from disclosure are established as follows:
(1) Any documents, materials, or other information in the control or possession of the commissioner or the commissioner's agent and furnished by an insurer, a producer, or an employee or agent acting on behalf of the insurer or producer, or obtained by the commissioner, the commissioner's agent, the insurance division, or any employee of the insurance division, in an investigation pursuant to this section shall be confidential and privileged, shall not be subject to chapter 92F, subpoena, or discovery, and shall not be admissible in evidence in any civil action; provided that the commissioner or the commissioner's designee is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner's duties.
(2) Neither the commissioner nor any person who received documents, materials, or other information while acting under the authority of the commissioner shall be required to testify in any civil action concerning any confidential documents, materials, or information subject to paragraph (1).
(3) Any provision to the contrary notwithstanding, the commissioner may:
(A) Share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to paragraph (1), with other state, federal, and international regulatory and law enforcement agencies and authorities, the National Association of Insurance Commissioners, and their affiliates or subsidiaries; provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information;
(B) Receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the National Association of Insurance Commissioners, its affiliates or subsidiaries, and state, federal, and international regulatory and law enforcement agencies and authorities and shall maintain as confidential or privileged any document, material, or information received with the notice or understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and
(C) Enter into agreements governing sharing and use of information consistent with this subsection.
(4) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the commissioner under this section or sharing, receiving, or using the information as authorized in paragraph (3).
(5) Nothing in this article shall prohibit the commissioner from releasing final adjudicated actions, including terminations that are open to public inspection pursuant to section 431:2-209 to a database or other clearinghouse service maintained by the National Association of Insurance Commissioners or its affiliates or subsidiaries.
(f) An insurer, its authorized representative, or a producer who fails to report as required by this section or who is found to have reported with actual malice by a court of competent jurisdiction may, after notice and hearing, have its license or certificate of authority suspended or revoked and may be fined in accordance with article 2. [L 2001, c 216, pt of §2; am L 2002, c 155, §33; am L 2017, c 152, §9; am L 2018, c 8, §1]