REPORT TITLE:
Insurers


DESCRIPTION:
Requires insurers to maintain a claims service office in the
State.  Exempts individuals domiciled in the State and performing
certain insurance-related services from the licensure
requirements for adjusters.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3189
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO INSURERS. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 431, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to part II of article 3 to be
 
 3 appropriately designated and to read as follows:
 
 4      "§431:3-    Claims service; office or agent in State
 
 5 required; penalty.  (a)  Every insurer shall establish and
 
 6 maintain a complete claims service office or engage an
 
 7 independent adjusting service as its claims agent in the State
 
 8 for the processing and payment of property and general casualty
 
 9 insurance claims.
 
10      (b)  Failure to comply with subsection (a) shall subject the
 
11 insurer to a civil penalty of:
 
12      (1)  Not less than $2,500; or
 
13      (2)  $100 for each day the failure continues;
 
14 whichever sum is greater, to be recovered in an action brought by
 
15 the commissioner in the name of the State in a court of competent
 
16 jurisdiction.
 
17      (c)  Any insurer that violates subsection (a) for a period
 
18 of more than thirty days may be enjoined by the court from
 
19 transacting the insurer's business in the State so long as the
 

 
Page 2                                                     3189
                                     S.B. NO.           
                                                        
                                                        

 
 1 violation continues.
 
 2      (d)  The attorney general shall enforce this section if
 
 3 requested by the commissioner."
 
 4      SECTION 2.  Section 431:9-105, Hawaii Revised Statutes, is
 
 5 amended as follows:
 
 6      1.  By amending subsection (a) to read:
 
 7      "(a)  Adjuster means any individual who:
 
 8      (1)  Acts solely on behalf of either the insurer or the
 
 9           insured[, as an independent contractor or as an
 
10           employee of an independent contractor]; and
 
11      (2)  Investigates for, reports to, or adjusts for the
 
12           individual's principal relative to claims arising under
 
13           insurance contracts."
 
14      2.  By amending subsection (d) to read:
 
15      "(d)  For the purposes of this article, the following
 
16 domiciled individuals are not deemed to be an adjuster:
 
17      (1)  An attorney at law who adjusts insurance losses from
 
18           time to time incidental to the practice of the
 
19           attorney's profession;
 
20      (2)  An adjuster of marine losses;
 
21      (3)  A salaried employee of a general agent, a subagent, an
 
22           insurer, or of an adjusting corporation or association
 
23           owned and controlled by insurers; and
 

 
Page 3                                                     3189
                                     S.B. NO.           
                                                        
                                                        

 
 1      (4)  An individual who acts for a self-insurer or for an
 
 2           insured which administers its own group insurance
 
 3           contract."
 
 4      SECTION 3.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 4.  This Act shall take effect upon its approval.
 
 7 
 
 8                       INTRODUCED BY:  ___________________________