Bill > SB1137

This bill requires insurers operating in Hawaii to provide direct written notification to policyholders about rate changes, beginning January 1, 2026. The notification must be sent at least 30 days before the effective date and include specific details such as the new rate, percentage increase or decrease, a brief explanation for the rate change (like claims experience or inflation), and contact information for the insurer or Hawaii insurance division. Insurers can send these notifications via mail to the policyholder's last known address or electronically if the policyholder has consented to digital communications. The bill aims to enhance consumer transparency by ensuring policyholders are directly informed about potential changes to their insurance rates, empowering them to make informed decisions about their coverage. If insurers fail to comply with these notification requirements, they may face administrative penalties, including fines or corrective actions determined by the insurance commissioner. The legislation is modeled after similar consumer protection practices in states like New Jersey and Washington, and is intended to promote fairness and accountability in the insurance market.