HOUSE OF REPRESENTATIVES

H.B. NO.

1990

TWENTY-EIGHTH LEGISLATURE, 2016

 

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 consumer protection is extremely important to the State and that the roles of adjusters and public adjusters under the insurance code need to be amended to protect the interests of the people of Hawaii.

     The purpose of this Act is to make amendments to the definitions of "adjuster" and "public adjuster" and to add definitions for "insurance appraiser" and "insurance umpire" in the insurance code to protect the interests of the people of Hawaii.

     SECTION 2.  Section 431:9-105, Hawaii Revised Statutes, is amended as follows:

     1.  By adding two new definitions to be appropriately inserted and to read:

     ""Insurance appraiser" means a person that is appointed by either the insured or the insurer as may be further defined in the policy's appraisal clause and who shall be competent and well-versed in chapter 431.

     "Insurance umpire" means a person who is appointed by both of the insurance appraisers per the policy and shall be competent and well-versed in chapter 431 and who serves as the neutral individual bound by the disclosure requirements set forth in section 658A-12."

     2.  By amending the definition of "adjuster" to read:

     ""Adjuster":

     (1)  Means any individual who:

         (A)  Acts solely on behalf of either the insurer or the insured, as an independent contractor or as an employee of an independent contractor; and

         (B)  Investigates for, reports to, or adjusts for the individual's principal relative to claims arising under insurance contracts; but

     (2)  Does not include an individual who is:

         (A)  An attorney at law who adjusts insurance losses from time to time incidental to the practice of the attorney's profession;

         (B)  An adjuster of marine losses;

        [(C)  A salaried employee of an insurer or salaried employee of an adjusting corporation or an association owned or controlled by an insurer;] or

    [ (D)] (C)  An individual who acts for a self-insurer or for an insured that administers its own group insurance contract."

     3.  By amending the definition of "public adjuster" to read:

     "Public adjuster" [means]:

     (1)  Means any individual who is an adjuster employed by and solely representing the financial interests of the insured named in the policy[.]; but   

     (2)  Does not include an individual who is:

         (A)  A person, contractor, consultant, or third party entity, who, for a fee or other compensation or benefit, adjusts or estimates or acts as a third party for an insurer or for the insured involving an insurance claim;

         (B)  A person, contractor, consultant, or third party entity, who, for a fee or compensation or other type of benefit, acts as an intermediary, negotiator, or agent between a policyholder claimant or beneficiary and that of the insurer in any manner. 

     These "public adjuster" exclusions shall not preclude any scope of engagement as that of appointed insurance appraisers or that of an insurance umpire, as may be further defined in the policy."

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

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Insurance; Adjuster; Public Adjuster

 

Description:

Amends definitions of "adjuster" and "public adjuster".  Adds definitions for "insurance appraiser" and "insurance umpire".

 

 

 

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