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THE SENATE |
S.B. NO. |
2777 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO INSURANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature also finds that it is in the interest of consumers to have access to complete information when deciding between property insurance options, enabling them to make informed decisions in an increasingly expensive marketplace.
Accordingly, the purpose of this Act is to:
(1) Establish a disclosure requirement for property insurers to provide certain information concerning the insurer's payment of claims in the previous calendar year; and
(2) Provide for enforcement, fines, attorneys' fees, and costs for violations of the disclosure requirement.
SECTION 2. Chapter 431, Hawaii Revised Statutes, is amended by adding a new part to article 10E to be appropriately designated and to read as follows:
"Part
. Payment of
claims disclosureS
§431:10E-A
Payment of claims disclosure. (a) Any
authorized insurer operating in the State that sells, solicits, or offers
coverage under a policy for insurance against loss of or damage to real
property shall provide on request, subject to subsection (b), the following
information relating to policies covering commercial and residential real
property within the State for the period of January 1 through December 31 of
the previous year:
(1) The total number of claims open at the beginning of the period;
(2) The total number of claims opened during the period;
(3) The total number of claims closed with payment during the period;
(4) The total number of claims closed without payment during the period; and
(5) The total number of claims open at the end of the period.
(b) The authorized insurer shall provide the information identified in subsection (a):
(1) To a person to whom any offer to sell or renew is made;
(2) Concurrently with an offer to sell or renew; and
(3) In a manner that is clearly and conspicuously displayed;
provided that the information to be provided shall be limited to each policy type included in the offer to sell or renew.
(c) For the purposes of this section, "clearly and conspicuously" means presented in a manner that is readily noticeable, readable, and understandable to a person to whom applicable information is provided.
§431:10E-B
Violations. (a) Failure
to provide the information required pursuant to section 431:10E-A shall
constitute a violation of this part.
Upon determination by the insurance division that a violation has
occurred, the authorized insurer may be fined not more than $1,000 per
violation.
(b) An authorized insurer in violation of this part shall be responsible for any attorneys' fees and costs incurred by the department of commerce and consumer affairs or the attorney general to bring an administrative or civil action to enforce this part.
(c) An authorized insurer in violation of this part may be subject to any other administrative or civil action, as set forth under any relevant part of this chapter."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
DCCA; Insurance Division; Property Insurance; Payment of Claims; Disclosure; Violations; Penalties
Description:
Requires authorized property insurers to disclose certain information regarding payment of claims for the previous year. Establishes penalties. Effective 7/1/2050. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.