HOUSE OF REPRESENTATIVES

H.B. NO.

1421

TWENTY-NINTH LEGISLATURE, 2017

H.D. 1

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 role of insurance adjusters under the insurance code may need to be regulated to better 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 an individual that is appointed by either the insured or the insurer as may be further defined in a policy's appraisal clause and who is competent and well-versed in the insurance code.

     "Insurance umpire" means an individual, appointed by both insurance appraisers per an insurance policy, who shall be competent and well-versed in the insurance code and who shall serve as the neutral individual bound by the disclosure requirements as set forth in section 658A-12."

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

     ""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] and

     (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)  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 an adjuster employed by and solely representing the financial interests of the insured named in the policy.  "Public adjuster" does not include an unlicensed individual who is:

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

     (2)  Any person, contractor, consultant, or third party entity, who, for a fee or other compensation or benefit, acts as an intermediary, negotiator, or agent between a policyholder, claimant, or beneficiary and an insurer in any manner;

provided that the exclusions contained in paragraphs (1) and (2) shall not preclude the scope of engagement of any party-appointed insurance appraiser or that of an insurance umpire as 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 on July 1, 2099.


 


 

Report Title:

Insurance Code; Adjusters

 

Description:

Clarifies who may not be considered an adjuster or public adjuster under Article 9 of the Insurance Code.  Adds definitions of "insurance appraiser" and "insurance umpire".  (HB1421 HD1)

 

 

 

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