Bill Text: HI SB2440 | 2014 | Regular Session | Introduced
Bill Title: Contractors; Surety Bond; Performance Bond; Surety Company; Elderly
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2014-02-19 - The committee on CPN deferred the measure. [SB2440 Detail]
Download: Hawaii-2014-SB2440-Introduced.html
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THE SENATE |
S.B. NO. |
2440 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to surety insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 431:10F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§431:10F- Disclosure requirements. (a) Each surety company issuing a surety bond contract that is executed by a principal acting in the principal's individual capacity shall:
(1) Disclose, in writing, all potential personal losses to the principal arising from any action on the surety bond; and
(2) Provide each principal under this section who is over the age of sixty-two years with counseling, as prescribed by the department of commerce and consumer affairs, regarding the principal's capacity to sustain personal losses that may arise from any action on the surety bond.
(b) This section shall not apply to a principal acting in the capacity as an employee or corporate officer."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Contractors; Surety Bond; Performance Bond; Surety Company; Elderly
Description:
Requires surety companies to disclose risks of default to principals when signing surety bonds.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
