The recently completed session of the Hawaii Legislature enacted six insurance-related bills.  We summarize each below.

   SB 2017 – Insurance Claims Adjusters; Crop Insurance

   The bill allows a claims adjuster who adjusts only workers' compensation claims or crop insurance claims to take an examination approved by the Risk Management Agency of the United States Department of Agriculture in order to qualify for a limited insurance adjuster's license.

   SB 2371– Limited Benefit Health Insurance

   Limited benefit health insurance will be excluded from the insurance code provisions covering accident and health or sickness insurance contracts, with certain exceptions.  This bill is not yet signed by the Governor.

   SB 2812 – Captive Insurance Companies

   This statute amends the frequency of statutorily required captive insurance company examinations from once every three years to once every five years, unless otherwise required by the Insurance Commissioner.  It also requires risk retention captive insurance companies to undergo examination within three years of formation.  Further, the bill requires protected cell accounts established by sponsored captive insurance companies to be operated only under the forms of business organizations authorized by the insurance commissioner.

   HB 1439 – Life Settlements; Life Insurance

   The Life Settlements Act is extended for five additional years.  The bill establishes a life settlements working group to study life settlement issues, including the definition of "insurable interest."  This bill has not yet been signed by the Governor. 

   HB 2028 – Group Life Insurance; Limits

   The insurance commissioner must approve the issuance of group life insurance policies that cover other than the listed groups.  The bill expands group disability insurance to include groups other than the listed groups.

   HB 2087 – Medicaid; Health Insurance; Payment

   Health insurers are required to promptly pay claims for services to medicate recipients by repealing the exemption for medicaid claims from the clean claims law.  The bill further requires the State to pay interest on delayed payments.  Expenditures from the hurricane reserve trust fund and matching American Recovery and Reinvestment Act funds are authorized.  This bill has yet to be signed by the Governor.

   The status of bills not yet signed by the Governor can be tracked at www.capitol.hawaii.gov/session2010.