Ensures that replacement wages provided by an employer during the initial waiting period for Temporary Disability Insurance benefits are not considered when determining the equivalent cash value of an employer's plan.

A BILL FOR AN ACT

SECTION 1. Section 392-41, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) As used in subsection (a)(4) or (5), "benefits at least as favorable as the disability benefits required by this chapter" means the temporary disability benefits under any plan or agreement, in whole or in part, whose component parts [(waiting period for illness, waiting period for accident, duration of benefits, and percentage of wage loss replaced)] (duration of benefits and percentage of wage loss replaced) add in total to cash benefits or wages that are determined by the director to be at least as favorable as the disability benefits required by this chapter. The insurance commissioner shall establish a set of tables showing the relative value of different types of cash benefits and wages to assist the director in determining whether the cash benefits and wages under a plan are at least as favorable as the temporary disability benefits required by this chapter. Replacement wages provided by an employer during the initial waiting period prescribed by section 392-24 shall not be included in the director's determination."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.