Chapter 431 — Chapter 431

§431:20-108 Guarantee fund. (a) A title insurer, before issuing any title insurance policy covering property located in this State, shall deposit $400,000 with the commissioner, which deposit shall be known as a guarantee fund and shall be held for the security and protection of …

§431:20-109 Limitations on compliance with section 431:20-107 and section 431:20-108. If section 431:20-107 or section 431:20-108 requires a greater amount of capital and surplus or deposits than that required of a title insurer prior to July 1, 1988, such title insurer shall hav…

§431:20-110 Purchase of materials and plant; valuation. Any domestic title insurer, after having its required capital paid in and depositing its required guarantee fund with the commissioner, may invest its funds in the preparation and purchase of materials and plant necessary to…

§431:20-110.5 Dividends. A title insurer shall not pay any dividends except from profits remaining on hand after retaining unimpaired assets aggregating in value an amount equal to the sum of the following:

§431:20-111 Loans to officers, etc. A title insurer shall not directly or indirectly make a loan from its assets to any of its officers, employees, or directors, or to any member of the family of any officer or director. Any officer, director, agent, or employee of any such insur…

§431:20-112 Limit of risk. No insurer transacting title insurance in this State shall expose itself to any one risk in an amount exceeding fifty per cent of the aggregate amount of its total capital and surplus and its reserves other than its loss or claim reserves. As used in th…

§431:20-113 Underwriting standards and record retention. (a) No title insurance policy may be written unless and until the title insurer has caused to be conducted a reasonable search and examination of the title, and has caused to be made a determination of insurability of title…

§431:20-114 Reinsurance reserve. (a) A domestic title insurer shall establish and maintain a reinsurance reserve computed in accordance with this section, and all sums attributed to the reserve shall at all times and for all purposes be considered and constitute unearned portions…

§431:20-115 Use of reinsurance reserve on liquidation, dissolution or insolvency. (a) If a domestic title insurer becomes insolvent, is in the process of liquidation or dissolution, or is in the possession of the commissioner: (b) If reinsurance is not obtained, assets equal to t…

§431:20-116 Loss and loss expense reserve. (a) All title insurers licensed in this State shall establish and maintain reserves against unpaid losses and loss expenses. (b) Upon receiving notice from or on behalf of the insured of a title defect in, or lien or adverse claim agains…

§431:20-117 Reinsurance. (a) A title insurer may obtain reinsurance for all or any part of its liability under one or more of its title insurance policies or reinsurance agreements, and may also reinsure title insurance policies issued by other title insurers on risks located in …

§431:20-118 Prohibition on rebates and inducements. (a) No title insurer, controlled escrow company, or underwritten title company shall: (b) No title insurer shall issue any title policy in any transaction in connection with which it or any person, who is a controlled escrow com…

§431:20-119 Division of fees. Nothing in this article shall prohibit the division of fees or charges between two or more title insurers or between one or more title insurers and one or more underwritten title companies, if such division does not constitute an unlawful rebate or i…

§431:20-120 Schedules of premiums and charges. (a) Every title insurer shall adopt, print, and make available to the public schedules of its currently effective premiums and charges. (b) The schedules shall: (c) The schedule may: (d) All or any part of any schedule may be changed…

§431:20-121 Contract forms, filing, disapproval. (a) Every title insurer shall at least thirty days before use, file with the commissioner every form of insurance contract which it proposes to issue as to risks located in this State, together with the forms of all printed endorse…

§431:20-122 Annual statement. Every title insurer shall include in its annual statement furnished to the commissioner pursuant to section 431:20-103(4), the name of each person in this State which is a controlled escrow company or underwritten title company by reason of its relat…

§431:20-123 Remedies. In enforcing this article, the commissioner shall be entitled to the remedies provided for in section 431:20-103(2), (3), and (4). [L 1987, c 347, pt of §2; am L 2004, c 122, §79]

§431:20-124 Additional penalty. Every title insurer, controlled escrow company, and underwritten title company who pays any commission or who makes any unlawful rebate in violation of this article shall be liable to this State for five times the amount of any such commission or u…

§431:20-125 Revocation or suspension of title insurer's certificate of authority. (a) The commissioner may after a hearing suspend or revoke the certificate of authority of any title insurer which: (b) The hearings shall be conducted in accordance with section 431:20-103(3) and t…

§431:21-102 Definitions. As used in the article: "Association" means the Hawaii Property Insurance Association created under section 431:21-103. "Basic property insurance" means insurance against direct loss to real or tangible personal property from perils insured under the stan…

§431:21-103 Creation of association. (a) There is created a nonprofit unincorporated legal entity to be known as the Hawaii Property Insurance Association. All insurers included in the definition of member insurer in section 431:21-102 shall be and remain members of the associati…

§431:21-104 Board of directors. (a) The board of directors shall have responsibility and control over the organization, management, policies, and activities of the association. The board of directors of the association shall consist of twelve persons serving terms as established …

§431:21-106 Plan of operation. (a) The association shall submit to the commissioner a plan of operation and any amendments to the plan necessary or suitable to ensure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendment sh…

§431:21-109 Insurance coverages available under plan. All properties qualifying for coverage under the plan of operation shall be eligible for the standard fire policy and extended coverage endorsement. The association shall provide additional coverages when directed by the commi…

§431:21-119 Issuance of new policies; removal of moratorium. If residential property insurance is unavailable, as determined by the commissioner, due to a moratorium on the issuance of policies on property situated in lava zones where the mayor of the county of Hawaii has issued …

[ARTICLE 22] LOSS MITIGATION GRANT PROGRAM §431:22-101 Definitions. As used in this article: "Commissioner" means the insurance commissioner. "Loss mitigation" means actions undertaken to reduce losses that may result from a hazard. "Wind resistive devices" means devices, techniq…

§431:22-102 REPEALED. L 2011, c 124, §55.

§431:22-103 Establishment of loss mitigation grant program. The commissioner shall develop and implement a pilot grant program to encourage the installation of wind resistive devices. The commissioner may spend up to $6,000,000 over three years for the grant program, which amount…

§431:22-104 Standards for the award of grants. (a) Subject to the availability of funds and the standards in this article, grants for wind resistive devices shall be awarded by the commissioner: (b) Grants shall be awarded for the installation of the following: The description, s…

§431:26-102 Applicability and scope. (a) Except as otherwise provided in this section, this article applies to all health carriers that offer fully insured network plans. (b) The following shall not apply to health carriers that offer network plans that consist solely of limited …

§431:26-103 Network adequacy. (a) Network adequacy requirements shall be as follows: (b) The commissioner shall determine sufficiency in accordance with the requirements of this section by considering any reasonable criteria, which may include but shall not be limited to: (c) A h…

§431:26-104 Requirements for health carriers and participating providers. (a) A health carrier shall establish a mechanism by which participating providers shall be notified on an ongoing basis of the specific covered health care services for which the providers will be responsib…

§431:26-108 Rules. The commissioner may adopt rules pursuant to chapter 91 to carry out this article. [L 2017, c 191, pt of §1; am L 2018, c 18, §27]

§431:2D-102 Definitions. As used in this article, unless the context indicates otherwise: "Commissioner" means the insurance commissioner of the State of Hawaii. "Complaint" means a written or documented oral communication to the insurance division primarily expressing a grievanc…

§431:2D-107 Confidentiality requirements. (a) Except as otherwise provided by law, market conduct surveillance personnel shall have free and full access to all books and records, employees, officers, and directors, as practicable, of the insurer during regular business hours. An …

ARTICLE 3 INSURERS GENERAL REQUIREMENTS PART I. DEFINITIONS §431:3-101 Alien insurer. An alien insurer is one formed under the laws of a nation other than the United States. [L 1987, c 347, pt of §2]

§431:3-102 Capital funds. Capital funds means the excess of the assets of an insurer over its liabilities. Capital stock, if any, shall not be deemed to be a liability for the purposes of this section. [L 1987, c 347, pt of §2]

§431:3-103 Charter. Charter means articles of incorporation, of agreement, of association, or other basic constituent document of a corporation, or subscribers' agreement and power of attorney for attorney of a reciprocal insurer. [L 1987, c 347, pt of §2]

§431:3-104 Domestic insurer. A domestic insurer is one formed under the laws of this State. [L 1987, c 347, pt of §2]

§431:3-105 Foreign insurer. A foreign insurer is one formed under the laws of any state, as defined in section 431:1-213, other than this State. [L 1987, c 347, pt of §2]

§431:3-106 Mutual insurer. A mutual insurer means an incorporated insurer without capital stock, the governing body of which is elected by its policyholders. The policyholders, who are the insurer's owners, are known as members. [L 1987, c 347, pt of §2]

§431:3-107 Reciprocal insurance. Reciprocal insurance means that insurance resulting from the exchange of insurance contracts among subscribers of an unincorporated association, the interexchange being effectuated through an attorney-in-fact common to all such subscribers, thereb…

§431:3-108 Reciprocal insurer. A reciprocal insurer means an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact common to all such persons to provide reciprocal insurance among themselves. [L 1987, c 347, pt of §2]

§431:3-109 Reinsurance. Reinsurance means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. In referring to reinsurance transactions, this code sometimes refers to the insurer transferring the risk a…

PART II. CERTIFICATE OF AUTHORITY §431:3-201 Authority required. (a) No person shall act as an insurer and no insurer shall transact insurance business in this State other than as authorized by a certificate of authority granted to it by the commissioner; except as to such transa…

§431:3-202 Insurer's name. (a) Every insurer shall conduct its business in its own legal name. (b) No insurer shall assume or use a name deceptively similar to that of any other authorized insurer or a name that tends to deceive or mislead as to the type of organization of the in…

§431:3-203 Qualifications for authority. (a) To qualify for and hold a certificate of authority, an insurer shall: (b) In addition to the requirements in subsection (a), to qualify for and hold a certificate of authority, foreign and alien insurers must have continuously, activel…

§431:3-204 Classes of insurance authorized. An insurer which otherwise qualifies therefor may be authorized to transact any one or more classes of insurance as defined in sections 431:1-204 to 431:1-211; provided that:

§431:3-205 Funds required of new insurers. Subject to section 431:3-203(a)(2), to qualify to transact any one class of insurance, an insurer, not existing and authorized in this State on July 1, 1988, shall: Schedule "A" Class of Insurance Amount Required Life $ 600,000 Accident …

§431:3-206 Additional funds required, new insurers. In addition to the paid-up capital stock or unimpaired surplus as required under section 431:3-205 and section 431:3-208, the following insurers shall possess when first authorized: