Bill > HB2036

This bill amends Hawaii's motor vehicle insurance laws to prevent private passenger automobile insurance companies from keeping excessive profits. It defines "anticipated underwriting profit" as the profit margin included in rate filings, considering investment income from Hawaii business, and clarifies that "private passenger automobile business" refers to insurance for personal vehicles, not commercial ones. The bill requires insurance groups to report their earned premiums, incurred losses and expenses, administrative costs, and policyholder dividends annually. An "excessive profit" is realized if the combined underwriting gain over the three most recent years exceeds the anticipated underwriting profit by more than five percent of earned premiums. If excessive profits are found, the insurance commissioner will order a refund to policyholders unless the company can prove it would become financially impaired or insolvent. These refunds will be distributed proportionally to policyholders based on their premiums from the final year of the calculation, either as a cash refund or a credit towards future insurance purchases, with specific timelines and reporting requirements for the insurance companies.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2036&year=2026