Chapter 431 — Chapter 431

§431:19-305 Participants in sponsored captive insurance companies. (a) Associations, corporations, limited liability companies, partnerships, trusts, risk retention groups, and other business entities may be participants in any sponsored captive insurance company formed or licens…

§431:19-308 Applicable laws. A sponsored captive insurance company shall be subject to this part and to part I. If there is any conflict between this part and part I, this part shall control. [L 2008, c 190, pt of §1; am L 2012, c 253, §21]

§431:19-309 Existing licenses. Except as otherwise determined by the commissioner, a captive insurance company that has been issued a certificate of authority by the commissioner pursuant to section 431:19-102 as of July 1, 2008, and is licensed as a class 4 company shall not be …

ARTICLE 2 ADMINISTRATION OF INSURANCE LAWS PART I. INSURANCE DIVISION §431:2-101 Insurance division. The insurance division is established within the department of commerce and consumer affairs. [L 1987, c 347, pt of §2]

§431:2-102 Insurance commissioner. (a) The insurance division shall be under the supervision and control of an administrator who shall be known as the insurance commissioner. The director of commerce and consumer affairs shall, with the approval of the governor, appoint the insur…

§431:2-103 Salary. The salary of the commissioner shall be set by the director of commerce and consumer affairs but shall not be more than the maximum salary of first deputies to department heads. [L 1987, c 347, pt of §2]

§431:2-104 Seal. The official seal of the commissioner shall be a vignette of King Kamehameha I, with the words "Insurance Commissioner, State of Hawaii" surrounding the vignette. Any certificate or license issued by the commissioner shall bear the commissioner's official seal. […

§431:2-105 Deputies, employees. (a) There shall be a chief deputy commissioner, who shall be subject to chapter 76. The chief deputy commissioner shall have the power to perform any act or duty assigned by the commissioner. If a commissioner has not been appointed, the chief depu…

§431:2-105.5 Staff. There are established within the insurance division of the department of commerce and consumer affairs six positions for technical staff, and three positions for clerical staff, necessary to enable the State to meet and maintain National Association of Insuran…

§431:2-106 Ethical requirements for insurance division staff. The commissioner, deputies and employees of the insurance division shall not represent, be employed by, own any securities of, be a creditor of, or be financially interested in any other manner in, any insurer authoriz…

§431:2-107 Workers' compensation rate analysis. There shall be established within the insurance division a unit to assist the commissioner in workers' compensation insurance rate-filing and rate-making proceedings under article 14. The commissioner may employ or contract actuarie…

§431:2-108 Commissioner may delegate. Any power, duty, or function vested in the commissioner by this code may be exercised, discharged, or performed by any employee of the department of commerce and consumer affairs acting in the name and by the delegated authority of the commis…

§431:2-109 Supplies, convention blanks. The commissioner shall purchase at the expense of this State and in the manner provided by law:

§431:2-110 Offices. The commissioner shall have an office at Honolulu, and may maintain such offices elsewhere in this State as the commissioner may deem necessary. [L 1987, c 347, pt of §2]

PART II. POWERS AND DUTIES OF COMMISSIONER §431:2-201 General powers and duties. (a) The commissioner shall have the authority expressly conferred upon the commissioner by or reasonably implied from the provisions of this code. (b) The commissioner shall execute the commissioner'…

[§431:2-201.3 Criminal convictions; consent to engage in business.] (a) Any person who is engaged in the business of insurance or who is about to engage in the business of insurance in this State and who has been convicted of any felony shall request the commissioner's written co…

§431:2-201.5 Conformity to federal law. (a) The provisions of title 42 United States Code section 300gg, et seq., as they relate to group and individual health insurance shall apply to title 24, except: (b) The following definitions shall be used when applying title 42 United Sta…

§431:2-202 Orders and notices. (a) Orders and notices of the commissioner shall not be effective unless in writing and signed by the commissioner or by a person acting under authority delegated by the commissioner pursuant to section 431:2-108. (b) Every such order or notice shal…

§431:2-202.5 Approval; when deemed effective. Except as provided otherwise, any approval required by law shall be deemed granted on the sixtieth calendar day following the filing of the request for approval if the commissioner does not take any affirmative action to grant or deny…

§431:2-203 Enforcement. (a) The commissioner may prosecute an action in any court of competent jurisdiction to enforce any order or fine made by the commissioner pursuant to any provision of this code. (c) If any licensee doing business in this State, persistently or substantiall…

§431:2-204 Commissioner's power to subpoena. (a) The commissioner, either on the commissioner's own behalf or on behalf of any interested party, may take depositions, and subpoena witnesses or documentary evidence. The commissioner may administer oaths, and examine under oath any…

§431:2-205 Commissioner to receive service of legal process on foreign or alien insurer. (a) Each authorized foreign or alien insurer shall appoint the commissioner as its attorney to receive service of, and upon whom may be served, all legal process issued against it in this Sta…

§431:2-206 How service on commissioner made. (a) A person competent to serve a summons shall serve upon the commissioner triplicate copies of legal process against an insurer for whom the commissioner is attorney. In the absence of the commissioner, the process may be served upon…

§431:2-207 Contempt proceedings. If any individual fails to obey the subpoena, or obeys the subpoena but refuses to testify when required concerning any matter under examination, investigation or the subject of the hearing, the commissioner shall file a written report thereof and…

§431:2-208 Access to records. (a) Every person and its officers, employees, and representatives subject to investigation or examination by the commissioner, shall produce and make freely accessible to the commissioner the accounts, records, documents, and files in the person's po…

§431:2-209 Records and reports. (a) The commissioner shall preserve in permanent form records and reports of the commissioner's proceedings, hearings, investigations, and examinations, and shall file the records in the commissioner's office. (b) The records of the commissioner an…

§431:2-210 Copies and certificates as evidence. (a) Copies of records or documents in the commissioner's office certified to by the commissioner shall be received as evidence in all courts in the same manner and to the same effect as if they were the originals. (b) When required …

§431:2-211 Annual report. The commissioner, as early each year as accurate preparation enables, shall prepare and submit to the legislature a report which shall contain:

§431:2-212 Interstate cooperation. (a) The commissioner shall to the extent the commissioner deems useful for the proper discharge of the commissioner's responsibilities under this code: (b) All arrangements made jointly with any one or more of the other states under subsection (…

§431:2-214 The commissioner's education and training fund. (a) The commissioner may establish a separate fund designated as the commissioner's education and training fund. (b) This fund may be used to compensate or reimburse staff and personnel of the insurance division for educa…

§431:2-215 Deposits to compliance resolution fund. (a) All assessments, fees, fines, penalties, and reimbursements collected by or on behalf of the insurance division under title 24, except for the commissioner's education and training fund (section 431:2-214), the patients' comp…

§431:2-216 Assessments of health insurers. (a) Each mutual benefit society under article 1 of chapter 432, health maintenance organization under chapter 432D, and any other entity offering or providing health benefits or services under the regulation of the commissioner, except a…

§431:2-217 Trade name. (a) Before the use or change of a trade name to sell, solicit, or negotiate insurance in this State, the licensee shall register the trade name with the department of commerce and consumer affairs pursuant to part II of chapter 482. (b) Upon registration of…

PART III. INVESTIGATIONS, EXAMINATIONS, HEARINGS AND APPEALS §431:2-301 Purpose. The purpose of this part is to provide an effective and efficient system for examining the activities, operations, financial condition, and affairs of all persons transacting the business of insuranc…

§431:2-302 Authority, scope, and scheduling of examinations. (a) The commissioner or any authorized examiner may conduct an examination of any company as often as the commissioner deems appropriate, but, at a minimum, shall conduct an examination of each domestic insurer at least…

§431:2-303 Examination of producers, adjusters, promoters, and independent bill reviewers. For the purpose of ascertaining its condition, or compliance with this code, the commissioner may as often as the commissioner deems advisable examine the insurance accounts, records, docum…

§431:2-304 Examination of guaranty associations. (a) The Hawaii Insurance Guaranty Association shall be subject to examination and regulation by the commissioner. The board of directors shall submit, not later than March 30 of each year, a financial report for the preceding calen…

§431:2-305 Examination reports. (a) All examination reports shall be comprised of only facts appearing upon the books, records, or other documents of the insurer, its producers, or other persons examined, or as ascertained from the testimony of its officers, producers, or other p…

§431:2-306 Examination expense. (a) Examinations of: shall be at the expense of the insurer, person, or guaranty fund examined. Examination expenses shall include fees, mileage, and expenses incurred as to witnesses or any other person, as defined in article 1, subject to an exam…

§431:2-307 REPEALED. L 1999, c 163, §20.

§431:2-307.5 Reimbursement and compensation of examiners; source of funds; disposition of receipts. (a) All moneys necessary for the compensation and reimbursement of independent contractor examiners and insurance division staff examiners for actual travel expenses, reasonable li…

§431:2-308 Administrative procedure act applies. (a) The rules, notices, hearings, orders, and appeals provided for in this code are in all applicable respects subject to chapter 91, unless it is expressly provided otherwise. (b) The commissioner shall hold a hearing if required …

§431:2-402 Insurance fraud investigations branch. (a) There is established in the insurance division the insurance fraud investigations branch for the purposes set forth in this part. (b) The branch shall: (c) The branch may review and take appropriate action on complaints of fra…

ARTICLE 20 TITLE INSURANCE AND TITLE INSURERS §431:20-101 Scope. This article relates only to title insurers and title insurance policies. [L 1987, c 347, pt of §2]

§431:20-102 Definitions. For the purposes of this article: "Controlled escrow company" means each person engaged in the business of handling escrows of real property transactions in connection with which title policies are issued by a title insurer, which person: "Title insurance…

§431:20-103 General insurance law applicable. The following provisions shall apply to title insurance and to title insurers:

§431:20-104 Particular provisions prevail. If any provision of this code as incorporated in this article by section 431:20-103 is in conflict with any provision of this article, the provision contained in this article shall prevail. [L 1987, c 347, pt of §2]

§431:20-105 Authorized business. (a) Each title insurer may engage in the title insurance business in this State if licensed to do so by the commissioner. (b) Each domestic title insurer may issue policies and may also insure:

§431:20-106 Restrictions on business. Any insurer which anywhere in the United States transacts any class of insurance other than title insurance is not eligible for the issuance of a certificate of authority to transact title insurance in this State nor for the renewal thereof, …

§431:20-107 Capital requirements. A title insurer shall have a minimum capital, which shall be paid in and maintained, of not less than $400,000. [L 1987, c 347, pt of §2 as superseded by c 348, §21]