PART II. LICENSING REQUIREMENTS, PROCEDURES AND ENFORCEMENT

 

Case Notes

 

  Where management company for foreign insurer authorized to dobusiness in Hawaii did not hold a general agent, subagent, or solicitor licenseunder this article (1993), it could not have been legally appointed as either ageneral agent, subagent, or solicitor of insurer; thus it did not qualify as a"general agent", "subagent", or "solicitor" asdefined by this chapter (1993), did not fall within the parameters of thecategory described by §237-13(7) and was thus subject to a general excise taxrate of four per cent pursuant to §237-13(6).  115 H. 180, 166 P.3d 353.

 

§431:9-201  License required; exception.  (a) No person engaging in the business of insurance in this State shall act as, beappointed as, or hold oneself out to be an adjuster or independent billreviewer unless so licensed by this State.

(b)  Notwithstanding subsection (a), followinga catastrophe in this State, a Hawaii license shall not be required of anonresident adjuster for the adjustment of losses; provided that:

(1)  The common losses suffered that are to beadjusted are a direct result of the catastrophe and shall be so severe thatlicensed adjusters and licensed independent adjusters who are residents of thisState will be unable to adjust the losses within a reasonable time asdetermined by the commissioner;

(2)  The nonresident adjuster provides to thecommissioner a certified copy of the adjuster's current license in anotherstate.  The other state shall have substantially similar licensing requirementsto section 431:9-222; and

(3)  Within three working days of the commencement ofwork by the nonresident adjuster, the insurance company, independent adjustingcompany, or producer that is using the adjuster shall provide on its letterheadto the commissioner:

(A)  The name of the nonresident adjuster;

(B)  The nonresident adjuster's Hawaii mailingand business addresses and phone numbers; and

(C)  The nonresident adjuster's permanent homeand business addresses and phone numbers.

Upon satisfaction of all of these requirements,the nonresident adjuster may be registered with the commissioner and adjustcatastrophic losses in this State for up to one hundred twenty days from thedate of registration or for a period of time determined by the commissioner,whichever is less.

As used in this subsection,"catastrophe" means insured property losses in Hawaii that resultfrom a sudden, specific, and natural or manmade disaster or phenomenon, asdetermined by the commissioner.

(c)  Any person violating this section shall beassessed a civil penalty not to exceed $5,000 for each factually differentviolation.

(d)  Any person who knowingly violates thissection shall be assessed a civil penalty of not less than $1,000 and not morethan $10,000 for each violation.

(e)  Each repetition of an act that constitutesa violation subject to subsection (c) or (d) shall constitute a separateviolation. [L 1987, c 347, pt of §2; am L 1993, c 205, §14; am L 1998, c 203,§1; am L 2000, c 182, §9 and c 288, §7; am L 2001, c 216, §8; am L 2006, c 154,§15]