Bill Text: HI HB895 | 2018 | Regular Session | Introduced

Bill Title: Relating To Motor Vehicle Insurance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [HB895 Detail]

Download: Hawaii-2018-HB895-Introduced.html


H.B. NO.














relating to motor vehicle insurance.





     SECTION 1.  The purpose of this Act is to modernize certain practices required under chapter 431:10C, Hawaii Revised Statutes, relating to motor vehicle insurance.  The current statutory language anticipates a "brick and mortar" sales and claims office.  Today, many of the services traditionally accessed in a physical office are being accessed through mobile smart phone or internet technology.  Insureds can now purchase insurance or file a claim on their mobile devices.  In 2016, the legislature passed legislation allowing electronic versions of insurance cards to meet the physical card requirement of proof of insurance.  This Act seeks to further modernize the insurance code to incorporate the current use of electronic technology for claims service and adjustment and for sales of motor vehicle insurance.  The legislature finds that the insurance code should reflect the current state of business, and provide consumers with the services they desire.  Thus, this Act allows the insurance commissioner to require that satisfactory arrangements have been made for claims service and adjustment, and sales service for all motor vehicle insurance sold within the State; provided that the provision of a complete sales and claims service office in the State shall be at the commissioner's discretion.  This would afford the commissioner maximum flexibility to modernize sales and claims service, and would also allow insurers to modernize their practices to meet the demands of a changing consumer base.

     SECTION 2.  Section 431:10C-119, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Prior to licensing an insurer to transact a motor vehicle insurance business in this State, the commissioner:

     (1)  Shall effect a thorough examination of the insurer's business experience, financial soundness, and general reputation as an insurer in this and other states.  In the discretion of the commissioner, this examination may include an examination of any or all of the business records of the insurer, and an audit of all or any part of the insurer's motor vehicle insurance business, each to be performed by the commissioner's staff or by independent consultants.  No license shall be issued until the commissioner is satisfied as to the business experience, financial solvency, and the economic soundness of the insurer;

     (2)  Except for a member-owned reciprocal insurer and its wholly owned insurer subsidiaries, as specified in subsection (c), shall require of each insurer, and determine that satisfactory arrangements have been made for[, the provision of a complete sales and claims service office in the State;] claims service and adjustment, and for policies sold or issued to consumers in the State; [and]

     (3)  May require an in-state claims service and adjustment office; and

    [(3)] (4)  Notwithstanding any other requirements of this section or of the insurance code, may require a bond in a reasonable amount and with deposits or sureties determined in the commissioner's discretion of any applicant for a license hereunder.  The commissioner may, at any time, make and enforce such a requirement of any licensed insurer or self-insurer."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

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






Report Title:

Motor Vehicle Insurance; Claims Service; Sales



Allows insurance commissioner discretion in requiring motor vehicle insurers to have claims, adjustment, and sales service at an office in the State, to facilitate access to such services by electronic technology.




The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.