Bill > SB2948

This bill aims to strengthen insurance fraud prevention and enforcement in Hawaii by expanding the definition of insurance fraud, particularly during declared emergencies, and by enhancing the capabilities of the Insurance Fraud Investigations Branch. It introduces new definitions for "disaster-related insurance activity," "fraud analytics" (which refers to using data analysis to detect fraud), and "litigation financing arrangement" (where an outside party funds a lawsuit in exchange for a share of the settlement). The bill prohibits "claims harvesting," which involves soliciting insurance claims through deceptive means, and fraudulent litigation financing. It also establishes a centralized database for insurance fraud data, allows for interagency data sharing, and mandates that the Insurance Commissioner report annually to the Legislature on fraud investigations and trends. Furthermore, it provides protections for whistleblowers who report suspected insurance fraud in good faith and clarifies penalties for insurance fraud, including increased fines and potential license sanctions. The bill also addresses unfair claim settlement practices, especially during emergencies, and appropriates funds from the compliance resolution fund to support these efforts.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2948&year=2026