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:
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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.