Title 24, Insurance

[§431:26-107] Enforcement. (a) If the commissioner determines that: (1) A health carrier has not contracted with a sufficient number of participating providers to ensure that covered persons have accessible health care services in a geographic area; (2) A health carrier's network…

§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]

[§431:26-109] Penalties. A violation of this article shall result in penalties as provided in this chapter. [L 2017, c 191, pt of §1]

[§431:26-110] Severability. If any provision of this article or the application of any provision to a person or circumstance shall be held invalid, the remainder of this article and the application of the provision to a person or circumstance, other than those to which it is held…

[ARTICLE 2D] MARKET CONDUCT [§431:2D-101] Legislative intent. The purpose of this article is to establish a framework for insurance division market conduct actions, including: (1) Processes and systems for identifying, assessing, and prioritizing market conduct problems that have…

§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-103] Domestic responsibility and deference to other states. (a) The commissioner shall be responsible for conducting market conduct examinations for policyholder protection, which shall be accomplished by comprehensive or targeted examinations of domestic insurers or the…

[§431:2D-104] Market analysis procedures. (a) The commissioner shall gather information from data currently available to the insurance division, as well as surveys and required reporting requirements, information collected by the National Association of Insurance Commissioners an…

[§431:2D-105] Protocols for market conduct actions. (a) Market conduct actions taken as a result of a market analysis shall focus on the general business practices and compliance activities of insurers, rather than identifying infrequent or unintentional random errors that do not…

[§431:2D-106] Protocols for market conduct examinations. (a) When market analysis identifies a pattern of conduct or practice by an insurer which requires further investigation, and less intrusive market conduct actions identified in section 431:2D‑104(b) are not appropriate, the…

§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 …

[§431:2D-108] Market conduct surveillance personnel. (a) Market conduct surveillance personnel shall be qualified by education, experience, and, where applicable, professional designations. The commissioner may supplement the in-house market conduct surveillance staff with qualif…

[§431:2D-109] Immunity for market conduct surveillance personnel. (a) No cause of action shall arise nor shall any liability be imposed against the commissioner, the commissioner's authorized representatives, or an examiner appointed by the commissioner for any statements made or…

[§431:2D-110] Fines and penalties. (a) Fines and penalties levied pursuant to this article or other provisions of this chapter shall be consistent, reasonable, and justified. (b) The commissioner shall take into consideration actions taken by insurers that maintain membership in …

[§431:2D-111] Data collection and participation in national market conduct databases. (a) The commissioner shall collect and report market data to the market information systems of the National Association of Insurance Commissioners, including the complaint database system, the e…

[§431:2D-112] Coordination with other states through the National Association of Insurance Commissioners. The commissioner shall share information and coordinate the insurance division's market analysis and examination efforts with other states through the National Association of…

[§431:2D-113] Additional duties of the commissioner. (a) At least once per year, or more frequently if deemed necessary, the commissioner shall make available in an appropriate manner to insurers and other entities subject to the scope of this chapter, information on new laws and…

[§431:2D-114] Data calls. Whether through market analysis, market conduct action, or in response to another regulatory request, any information provided in response to a data call from the commissioner or the commissioner's designee, shall be treated as confidential and privilege…

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…

[§431:3-110] Stock insurer. A stock insurer is an incorporated insurer with capital stock divided into shares and owned by its stockholders to whom the earnings are distributed as dividends on their shares. [L 2000, c 182, §1]

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: (1) Be one of the following: (A) A stock, mutual, or reciprocal insurer of the same general type as may be formed as a domestic insurer under article 4; (B) A volunt…

§431:3-203.5 Foreign insurer; certification. (a) Notwithstanding section 431:3-203 or any other law to the contrary in this code, the commissioner shall grant a certificate of authority to any applicant, regardless of the number of previous years experience in the business of ins…

§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: (1) A life insurer shall not transact any insurance in additi…

§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: (1) Deposit in a federally insured financial institution within the Stat…

§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: (1) In the case of domestic stock or reciproca…

§431:3-207 Noncompliance as to capital stock and surplus permitted certain insurers for five years. (a) A domestic or foreign insurer holding a valid certificate of authority to transact insurance in this State as of July 1, 1988, for a period of five years after that date, may c…

§431:3-208 Funds required of existing and new insurers for transacting additional classes of insurance. (a) An insurer otherwise qualified may be authorized to transact combinations of classes of insurance while having on deposit in a federally insured financial institution withi…

§431:3-209 Deposits of alien and foreign insurers; special deposits. (a) To qualify for and hold a certificate of authority, an alien or foreign insurer must deposit and maintain on deposit assets equal in amount to either the amount of paid-up capital stock in the case of a stoc…

§431:3-210 Determination of capital funds of alien insurer. (a) The capital funds of an alien insurer shall be deemed to be the amount by which its assets exceed its liabilities with respect to its business transacted in the United States. (b) Assets of such insurer held in any s…

§431:3-212 Application for authority. To apply for an original certificate of authority, an insurer shall file with the commissioner a Uniform Certificate of Authority Application from the National Association of Insurance Commissioners that shall set forth or be accompanied by a…

§431:3-212.5 Redomestication of authorized insurers. (a) The certificate of authority, producer appointments and licenses, rates, and other items allowed by the commissioner, which are in existence at the time an insurer authorized to transact insurance business in this State tra…

§431:3-213 Authority issued or denied. (a) If the commissioner finds that an insurer has met the requirements for and is fully entitled thereto under this code, the commissioner shall issue to it a proper certificate of authority. (b) If the commissioner does not so find, the com…

§431:3-214 Extension; amendment. (a) No certificate of authority shall contain an expiration date, but all certificates of authority shall be extended by the commissioner from time to time in order to continue to be valid. When the commissioner issues or extends a certificate of …

§431:3-215 Withdrawal from State; obligations. (a) No insurer other than a life insurer shall withdraw from this State until its direct liability to its policyholders and obligees under all its insurance contracts then in force in this State has been assumed by another authorized…

§431:3-216 Mandatory refusal, suspension or revocation provisions. The commissioner shall suspend, revoke, or refuse to extend an insurer's certificate of authority in addition to other grounds in this code, if the insurer: (1) Is a domestic stock insurer and has assets less in a…

§431:3-217 Discretionary refusal, suspension or revocation provisions. After a hearing the commissioner may suspend, revoke, or refuse to extend an insurer's certificate of authority, in addition to other grounds in this code, if the insurer: (1) Knowingly fails to comply with or…