RELATING TO INSURANCE.

SB2777

THE SENATE

S.B. NO.

2777

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to insurance
.

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

����
SECTION 1.
�
The legislature finds that the cost of
property insurance continues to increase in light of changing market
conditions, including climate change and climate-related impacts.

����
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 the insurance commissioner with certain
information concerning the insurer's payment of claims in the previous calendar
year;

����
(2)
�
Require the insurance division to make
the disclosed information available to the public; and

����
(3)
�
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; retention of records.
�
(a)
�
Any insurer operating in the State that
provides property insurance as defined in section 431:1-206 shall, within three
months following the completion of the calendar year, submit to the
commissioner a full and accurate written
disclosure
of the following information for that
calendar year:

����
(1)
�
The total number of claims filed with
the insurer;

����
(2)
�
The total number of filed claims that
were approved to receive full payment;

����
(3)
�
The total number of filed claims that
were approved to receive partial payment;

����
(4)
�
For claims approved for full or partial
payment, the total number of those claims for which payments had been fully
dispersed at the time of the disclosure; and

����
(5)
�
Any other reasonable disclosure that
the commissioner determines appropriate to effectuate this part.

����
(b)
�
All disclosures submitted pursuant to this
section shall be in a form prescribed by the commissioner.

����
(c)
�
All disclosures submitted pursuant to this
section shall be retained by the insurance division for
years and shall be made available for review by any individual upon request.

����
�431:10E-B
�

Publication.
�
(a)
�
The
insurance division shall make public the information received pursuant to
section 431:10E-A as follows:

����
(1)
�
On its website in a conspicuous
location;

����
(2)
�
In-person at its offices; and

����
(3)
�
Through any other means or platforms
deemed appropriate by the commissioner to effectuate this part.

����
(b)
�
The information published
pursuant to subsection (a)
shall be made available in a format that
aggregates the information disclosed by all insurers and shall enable a person
viewing the information to identify each insurer and related data for the
relevant reporting period.

����
�431:10E-C
�

Violations.
�
(a)
�
For
each day that an insurer is in violation of the disclosure requirement pursuant
to this part, the
insurance division
shall fine the insurer $
1,000 per day; provided that the maximum fine
shall not exceed $50,000.

����
(b)
�
An 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 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 upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

DCCA;
Insurance Division; Insurance Commissioner; Property Insurance; Payment of
Claims; Disclosure; Records; Publication; Violations; Penalties

Description:

Requires
property insurers to disclose to the Insurance Division of the Department of
Commerce and Consumer Affairs certain information regarding payment of claims
for the prior year.
�
Requires the Insurance
Division to retain and make the information publicly available.
�
Establishes penalties.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.