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Bill

GM 1140

Informing the Legislature that on May 26, 2026, the Governor signed the following bill into law: HB2282 HD1 SD1 CD1 (ACT 040).

2026 Regular Session

HB2282 strengthens Hawaii insurance oversight by requiring explanations for premium increases, tightening licensure discipline and due process, and boosting notice requirements for

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Bill Summary · GM 1140

Bill at a Glance

  • Jurisdiction: Hawaii
  • Session: 2026
  • Bill: HB2282 CD1 (Act 040)
  • Title: Relating to Insurance
  • Effective date: Generally upon approval; specific sections take effect January 1, 2027

Main purpose and intent

HB2282 broadens and clarifies regulatory oversight of insurance and licensees in Hawaii. The bill adds requirements for transparency around premium increases, strengthens grounds for licensure discipline, updates notifications related to cancellation/nonrenewal of property insurance, and adjusts certain service fees and penalties. Overall, it aims to improve consumer protection, insurance license integrity, and administrative due process.

Key provisions and changes

1) Premium increase explanations
- New requirement: Insurers must reasonably explain changes in premium upon written request by the policyholder at renewal.
- Section: Adds a clear statutory obligation to provide explanations for premium increases when asked in writing.

2) Insurance licensing discipline (grounds and due process)
- Revisions to license denial, suspension, revocation, or nonrenewal processes.
- Expands and clarifies causes for disciplinary action, including:
- Providing or withholding false or misleading information in license applications
- Violating laws or orders, fraud or misrepresentation
- Improper handling of funds
- Unfair or fraudulent insurance practices
- Convictions, or other disqualifying conduct (e.g., lack of license in another jurisdiction, dishonesty, fiduciary misconduct)
- Using license to engage outside authorized scope or improper dealing that harms the public
- Adds process for hearings: license decisions can be appealed with a hearing request within ten days; hearings occur within thirty days and follow chapter 91 procedures.

3) Notice requirements for cancellation/nonrenewal of property insurance
- Strengthens notice obligations for property insurance policies:
- General rule: at least 10 days before cancellation; at least 30 days before nonrenewal.
- For residential property policies: 20 days before cancellation; 30 days for nonrenewal (with longer periods if the policy requires).
- Notices must state the specific reasons for cancellation or nonrenewal.
- Applies to property insurers; longer notice periods may apply if the policy dictates.

4) Service fee extensions and penalties (purchasing group)
- Penalty structure for late service fee payment added:
- 50% penalty of the service fee if not paid by the extended deadline.
- If delinquency continues 30 days after notice, the purchasing group registration may be revoked or not reinstated until all payments are made.

Who would be affected

  • Insurance companies and licensed insurers operating in Hawaii
  • Insurance producers and licensees subject to disciplinary action
  • Policyholders, particularly those with property insurance, who request premium explanations or experience cancellation/nonrenewal notices
  • Administrative agencies enforcing insurance laws and fees

Procedural and timeline aspects

  • Effective dates:
    • Most sections take effect upon approval.
    • Sections 1–5 take effect January 1, 2027.
  • Hearing and due process:
    • Applicants/licensees may request a hearing within 10 days of written notification for disciplinary actions.
    • Hearings occur within 30 days and follow Chapter 91 procedures.
  • Notices of cancellation/nonrenewal:
    • Specific minimum notice periods outlined, with longer periods for certain policies as required by the policy terms.

Overall, the act enhances transparency for premium changes, tightens licensure discipline standards, improves notice practices for property insurance cancellations and nonrenewals, and introduces penalties to encourage timely fee payments.

Compiled from official sources — confirm details with the bill’s official record.

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