Hawaii Insurance Laws, Rules and Regulations
Regulator and licensing
The Hawaii Insurance Division of the Department of Commerce and Consumer Affairs (DCCA), headed by the Insurance Commissioner, licenses insurers and producers, reviews rates and forms, examines market conduct, and enforces the insurance code (HRS Chapter 431).
A producer must hold a resident or nonresident license for each line sold, be appointed by the insurer, and hold funds in a fiduciary capacity (premiums are trust funds). Continuing education is required each license term, including ethics hours; failure to complete CE or to report administrative actions can lead to license suspension, fine, or revocation.
Market conduct rules
Hawaii prohibits unfair trade practices, including misrepresentation, false advertising, twisting, rebating, illegal inducements, unfair claim settlement practices, and failure to maintain complaint records. Rates must be adequate, not excessive, and not unfairly discriminatory.
Hawaii-specific coverage rules
Hawaii is a no-fault auto state. Minimum Personal Injury Protection (PIP) is $10,000, paying medical expenses, wage loss, and related benefits regardless of fault. Minimum liability limits are $20,000 per person / $40,000 per accident bodily injury and $10,000 property damage. A lawsuit for pain and suffering generally requires meeting a tort threshold - for example, medical expenses exceeding $5,000, or specified serious injuries such as fracture, permanent disfigurement, or death.
Because of hurricane and volcanic exposure, Hawaii homeowners policies require insurers to offer hurricane coverage, often with a separate percentage hurricane deductible. The Hawaii Hurricane Relief Fund serves as a market of last resort for residential hurricane coverage.
Rule of thumb: on Hawaii auto questions, first ask which coverage pays regardless of fault (PIP, med pay), then whether the tort threshold is met.