Insurer's requirements; failure to maintain a claims service office; penalty; injunction
HRS §392-42.5
in effect392-42.5. Insurer's requirements; failure to maintain a claims service office; penalty; injunction
(a) Each insurer shall maintain a complete claims service office or engage an independent claims adjusting service as its claims agent in this State with draft authority for the processing of temporary disability insurance payments.
(b) If an insurer fails to comply with
subsection (a), the insurer shall be subject to a civil penalty of not less
than $2,500 or $100 for every day during which such failure continues,
whichever sum is greater, to be recovered in an action brought by the director
in the name of the State, and the amount so collected shall be paid into the trust
fund created by section 392-61. The director, in the director's discretion,
for good cause shown, may remit all or any part of the penalty in excess of
$2,500, if the insurer in default forthwith complies with subsection (a). With
respect to such actions, the attorney general shall enforce this subsection if
so requested by the director.
(c) If any insurer violates subsection (a) for
a period of thirty days, the insurer may be enjoined by the circuit court from
carrying on the insurer's business any place in the State so long as the
violation continues. The action for injunction shall be commenced by the
attorney general if so requested by the director.
[L 1991, c 113, §1; am
L 2013, c 100, §8]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0392/HRS_0392-0042_0005.htmFetched: 11/10/2026