Hawaii Insurance Laws, Auto Insurance, Industry and Health Care Reform…
Like all other states in the union, Hawaii governs its own insurance industry through an expansive structure of regulations. These regulations are meant to ensure the efficiency and overall functionality of the industry and its various sectors. Hawaii Insurance companies licensed to do business are required to adhere to the state’s regulations. Those that do not comply with these regulations face harsh penalties that could result in jail time and expulsion from the state as a business.
Auto insurance is required in Hawaii. Drivers must maintain Hawaii auto insurance policies, and are required by law to hold at least a minimum level of coverage. This coverage must account for no less than $20,000/$40,000 bodily injury liability and $10,00 for damage to property. Drivers are required to carry personal injury protection (PIP) coverage in Hawaii, which must account for $10,000 at minimum. Rates vary depending on driving history and the insurance companies from which consumers purchase coverage. These rates are regulated by the Hawaii Department of Insurance.
Minimum Liability Limits for Hawaii Auto Insurance: $20,000/$40,000 Bodily Injury and $10,000 Property Damage
Hawaii maintains its own property insurance industry. The state is somewhat popular in terms of Hawaii homeowners insurance, despite its relatively small size and exposure to natural disasters. Though the state regulates the property insurance industry, homeowners and businesses are not required to carry insurance protection by state law. Coverage for homes and Hawaii business insurance properties is often required to receive financing for such properties from a bank or other financial institution.
Though Hawaii homeowners insurance is not required by the state, Hawaii still regulates the business aspect of the industry to ensure that everything is proceeding in a fair and balanced manner.
Hawaii residents will be required to purchase and maintain health insurance policies in 2014, per the Affordable Care Act. This is a requirement imposed by the federal government and not the State of Hawaii. The state has determined that it will build and operate its own health insurance exchange to provide residents with access to affordable coverage. The exchange will be populated by insurance companies licensed to operate in the state, all of which will provide policies with tiered benefits. The state will also boast of an expanded Hawaii Medicare program that will be more inclusive for consumers.
In 2014, the Hawaii health insurance exchange will be fully operational and ready to sell policies to residents. The state will regulate this exchange and ensure that consumers are treated fairly. Policy rates for both exchange coverage and that offered by private companies outside of the exchange will be regulated by the Hawaii Department of Insurance. Rate increase proposals that are deemed unnecessary will be rejected and companies will have an opportunity to rework their proposals to be more suitable for the state’s economic status.
Hawaii Insurance Resources:
Hawii Department of Insurance Website: http://hawaii.gov/dcca/ins/
Hawaii Insurance Commissioner: Gordon I. Ito
File a complaint: http://hawaii.gov/dcca/ins/consumer/filing_a_complaint
Hawaii Insurance Agent Resources: https://www.ehawaii.gov/dcca/hils/renew/exe/insrenew.cgi