SB2596.DOC

SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to part II of article 10D to be appropriately designated and to read as follows:

"§431:10D- Other groups; limits. (a) Group life insurance, other than a policy described in sections 431:10D‑202 through 431:10D-211, shall not be offered or delivered in this State unless the commissioner finds that:

(1) The issuance of the group life insurance policy is not contrary to the best interest of the public;

(2) The issuance of the group life insurance policy would result in economies of acquisition or administration; and

(3) The benefits of the group life insurance policy are reasonable in relation to the premium charged.

(b) No group life insurance coverage may be offered or delivered in this State, pursuant to this section, by an insurer under a group life insurance policy issued in another state, unless:

(1) The commissioner finds that the policy conforms to the requirements of subsection (a); or

(2) The issuing state has requirements substantially similar to those contained in subsection (a) and has made a determination that those requirements have been met.

(c) The premium for a group life insurance policy issued pursuant to this section shall be paid by the policyholder, covered persons, or both.

(d) An insurer may exclude or limit from coverage under a policy issued pursuant to this section any person as to whom evidence of individual insurability is not satisfactory to the insurer."

SECTION 2. Section 431:10A-201, Hawaii Revised Statutes, is amended to read as follows:

"§431:10A-201 Definitions. For the purposes of this article:

(1) (A) [~~Blanket~~] "Blanket disability insurance [~~policy~~] policy" means any policy or contract of accident and health or sickness insurance which conforms with the description and complies with one of the following requirements:

(i) A policy issued to any common carrier of passengers, which carrier shall be deemed the policyholder, covering a group defined as all persons who may become [~~such~~] passengers, and whereby [~~such~~] the passengers shall be insured against loss or damage resulting from death or bodily injury either while, or as a result of, being [~~such~~] passengers[.];

(ii) A policy issued in the name of any volunteer fire department, first aid or ambulance squad, or volunteer police organization, which shall be deemed the policyholder, and covering all the members of [~~any~~] such organization against loss from accidents resulting from hazards incidental to duties in connection with such organizations[.];

(iii) A policy issued in the name of any established organization whether incorporated or not, having community recognition and operated for the welfare of the community and its members and not for profit, which shall be deemed the policyholder, and covering all volunteer workers who serve without pecuniary compensation and the members of the organization, against loss from accidents occurring while engaged in the actual performance of duties on behalf of [~~such~~] the organization or in [~~the~~] its activities [~~thereof.~~];

(iv) A policy issued to an employer, who shall be deemed the policyholder, covering any group of employees defined by reference to exceptional hazards incident to [~~such~~] employment, insuring [~~such~~] the employees against death or bodily injury resulting while, or from, being exposed to [~~such~~] the exceptional hazards[.];

(v) A policy covering students or employees issued to a college, school, or other institution of learning or to the head or principal thereof, who or which shall be deemed the policyholder[.]; or

(vi) A policy issued to a substantially similar group who, in the discretion of the commissioner, may be properly eligible for blanket disability insurance.

(B) Nothing in this section shall be deemed to affect the liability of policyholders for the death of or injury to, any [~~such~~] member of [~~such~~] a specified group.

(C) Individual applications shall not be required from individuals covered under a blanket disability insurance contract.

(2) The term [~~employees~~] "employee" shall be deemed to include as employees of a single employer, the compensated officers, managers, and employees of the employer and of subsidiary or affiliated corporations of a corporation employer, and the individual proprietors, partners, and employees of individuals and firms of which the business is under common control through stock ownership, contract, or otherwise. The policy may provide that the term [~~employees~~] "employees" shall include the individual proprietor or partners if the employer is an individual proprietor or a partnership. The term [~~employee~~] "employee" may be deemed to include retired employees.

(3) The term [~~employer~~] "employer" shall be deemed to include any municipal corporation or governmental unit, agency, or department thereof as well as private individuals, firms, corporations, and other persons.

(4) [~~Group~~] "Group disability [~~insurance~~] insurance" means that form of accident and health or sickness insurance covering groups of persons, with or without their dependents and family members, and issued under a master policy to:

(A) [~~Such groups as~~] Groups that qualify for group life insurance under [[]sections[]] 431:10D-201 to 431:10D-211 [~~of this code;~~] and 431:10D- ; or

(B) An automobile club formed for purposes other than obtaining group insurance, covering the members of the club."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2010.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2596
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII