Very few insurance-related bills survived the 2014 Hawaii Legislative session, with several consumer-friendly bills failing to make it out of committee.
Here is a summary of the bills that passed:
SB2365: Limits reimbursement of prescription medications in order to prevent drug prices from becoming an unreasonable cost driver of health care in workers' compensation and motor vehicle insurance claims.
SB2470: Appropriates general funds to provide for the sustainability of the Hawaii Health Connector, but provides for greater transparency, stakeholder engagement, and legislative involvement in the activities of the Hawaii Health Connector.
SB2820: Amends Chapter 431, Hawaii Revised Statues, by adding a new section to article 10A prohibiting recession of coverage by a health insurer unless the individual is involved in fraud, makes an intentional misrepresentation, or fails to timely pay premiums.
SB2821: Adopts revisions to the National Association of Insurance Commissioners' model laws on Credit for Reinsurance Model Act, Standard Valuation Law, Standard Non-forfeiture for Life Insurance, and Insurance Holding Company System Regulatory Act.
All of these enacted bills have been enrolled to the governor who has until July 8, 2014 to sign or veto any bills before him, or to allow the bills to automatically become law without his signature.
Among the bills that died this legislative session were consumer friendly revisions to the Insurance Code, including HB2403. The bill would require an insurer in a first party claim to pay the claimant a fair amount within thirty days of a demand for payment of benefits under the policy. HB2048 also died. It would have clarified provisions by having surplus lines carriers pay the insured reasonable attorneys fees when coverage is denied and a court orders the insurer to pay benefits. Further, HB2048 would have provided for an award of reasonable attorney fees if an insurer was ordered to pay benefits in an arbitration. (Full disclosure – our office drafted HB2403).