Bill > SB1563

This bill establishes comprehensive insurance rate transparency regulations for Hawaii, creating the Office of Insurance Consumer Affairs within the Department of Commerce and Consumer Affairs to provide oversight and advocacy for policyholders. The bill requires insurance companies to provide detailed explanations of their rate-setting practices, including specific factors like credit scores, geographic location, and claims history, and mandates that companies disclose the percentage each factor contributes to premium calculations. Insurance companies must notify policyholders at least 60 days before any material rate changes (defined as premium increases over 10%), explaining the reasons for the adjustment and providing information about consumers' rights. The new office will have broad powers to advocate for policyholders, monitor compliance, develop consumer guides, provide dispute resolution services, and host public forums. Companies found in violation can face significant penalties, including fines up to $50,000 per instance, restitution payments, and potential license suspension for repeated infractions. Policyholders will gain new rights, such as the ability to request a full breakdown of their rate calculations and challenge those calculations through mediation and arbitration. The bill aims to increase transparency, build consumer trust, and protect against arbitrary rate-setting practices in the insurance industry.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1563&year=2026