Report Title:

Insurers; Claims Service Office

Description:

Requires insurers to maintain a claims service office in the State. Exempts individuals domiciled in the State and performing certain insurance-related services from the licensure requirements for adjusters.

HOUSE OF REPRESENTATIVES

H.B. NO.

2412

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to insurers.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to part II of article 3 to be appropriately designated and to read as follows:

"§431:3- Claims service; office or agent in State required; penalty. (a) Every primary insurer shall establish and maintain a complete claims service office or engage an independent adjusting service as its claims agent in the State for the investigating, processing, and payment of property, motor vehicle, and general casualty insurance claims.

(b) Failure to comply with subsection (a) shall subject the insurer to a civil penalty of:

(1) Not less than $2,500; or

(2) $100 for each day the failure continues;

whichever sum is greater, to be recovered in an action brought by the commissioner in the name of the State in a court of competent jurisdiction.

(c) Any insurer that violates subsection (a) for a period of more than thirty days may be enjoined by the court from transacting the insurer's business in the State so long as the violation continues.

(d) The attorney general shall enforce this section if requested by the commissioner.

(e) Nothing in this section shall preclude supervision or reviewing by non-domiciled personnel."

SECTION 2. Section 431:9-105, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) For the purposes of this article, the following domiciled individuals are not deemed to be an adjuster:

(1) An attorney at law who adjusts insurance losses from time to time incidental to the practice of the attorney's profession;

(2) An adjuster of marine losses;

(3) A salaried employee of a general agent, a subagent, an insurer, or of an adjusting corporation or association owned and controlled by insurers; and

(4) An individual who acts for a self-insurer or for an insured which administers its own group insurance contract."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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