Hawaii P & C

  1. Insurance Commissioner's Duties
    • - Administers & enforces all laws pertaining to business of insurance
    • - Revokes licenses of insurers, producers, adjusters for just cause
    • - conduct examinations & investigations to determine whether anyone has violated law
    • - As often as they'd like they can examine insurance accounts, records, documents, transactions of any producer or adjuster
    • - Holds hearings at place of their choice which may be open to the public
    • - Records of examinations by commissioner concerning insurere must be kept for 5 years
    • - Issues licenses & collects appropriate fees
    • - Appoints examiners
    • - Creates reasonable rules & regulations for insureres
  2. Violations of Hawaii Law
    • - Intentionally or Knowingly violating insurance code punishable by fine of not less than $100 nor more than $10,000 of by imprisonment for not more than one year, or both
    • - Fine of not more than $1,000/act can also be aggregate of $10,000 UNLESS act done knowingly the fine is not more $5,000 for every act & not to exceed $50,000 in a 6 month period
    • - Commissioner can issue a cease & desist order
    • - Violation of cease and desist order subject to fine of not more than $10,000 for each & every act or suspension and/or revoked license.
  3. Authorized
    • - Licensed & authorized to conduct insurance business in state
    • - Need certificate of authority from Insurance Commissioner
    • - Authorized company known as Admitted company
  4. Unauthorized
    - No certificate of authority & not licensed to transact insurance
  5. Domestic Insurance Company
    - Incorporated & organized under laws of Hawaii & has home office located in state.
  6. Foreign Insurance Company
    - Incorporated or organized under laws of another state but licensed & permitted to conduct business of insurance in Hawaii
  7. Alien Insurance Company
    - Incorporated or organized outside the US but licensed in State of Hawaii
  8. Stock Insurance Company
    • - Insurer owned by holders of company's capital stock
    • - Main motivation to earn profit
    • - Policyholders not entitled to dividends
  9. Mutual Insurance Company
    • - Insurer owned by policyholders
    • - Share in Company's profits through dividends
  10. Certificate of Authority
    • - Necessary to transact business in the state
    • - Not allowed to transact life or disability insurance
  11. Insurance
    • - Contract to indemnify another upon determinable contingencies
    • - Life, Disability income, property, marine & transportation, vehicle, surety, general casulty
  12. Licensing
    • - License remains in effect as long as license fee paid & CE requirements met
    • - If lapses, within 12 months from due date, reinstate license license w/o passing written exam; double unpaid renewal fee required.
    • - Change of address within 30 days
    • - Not required if no commission is made
    • - Temporary license not to exceed 180 days (6 months) This amount is given so if the licensed personal is unable to perform they can issue the temporary license so that staff can be trained.
    • - You can be exempt if a person applies for license in Hawaii who previously licensed for same lines in another state shall not be required to complete any prelicensing education of examination.
    • - In order to Renew license you need to complete required number of CE credits within 23 months
  13. Unfair Practices & Frauds
    • - Misrepresentation of insurance policies
    • - False information and advertising
    • - Defamation: putting any false, critical, and/or derogatory information in circulation
    • - Unfair Discrimination
    • - Rebating
  14. Reporting & Accounting for Premiums responsibilites
    • - every licensed producer & adjuster is fiduciary (relationship to client for trust & confidence)
    • - Must have funds maintained in federally insured account with bank in Hawaii; not required to maintain separate bank accounts for each insurere or person entitles to funds as long as there are accurate records
  15. Sharing Commissions
    - producer cannot pay commission
Card Set
Hawaii P & C