Hawaii Insurance Division

The Hawaii Insurance Division is the state agency responsible for regulating the Property & Casualty insurance industry in Hawaii. The Division operates as part of the Department of Commerce and Consumer Affairs (DCCA) and enforces Chapter 431 of the Hawaii Revised Statutes.

Department of Commerce and Consumer Affairs (DCCA)

The DCCA is a cabinet-level department that oversees multiple regulatory divisions:

• Insurance Division
• Professional & Vocational Licensing
• Consumer Advocacy
• Financial Institutions
• Securities
• Office of Administrative Hearings

Structure

• Director of DCCA: Appointed by the Governor with Senate confirmation
• Insurance Commissioner: Appointed by the Director of DCCA
• Insurance Division Staff: Handles day-to-day regulatory operations

Exam Tip: Unlike many states where the Insurance Commissioner is elected, Hawaii's Insurance Commissioner is appointed by the Director of DCCA. This makes Hawaii's structure similar to most states but different from elected-commissioner states like Oklahoma and California.

The Insurance Commissioner

The Hawaii Insurance Commissioner serves as the chief regulator of the insurance industry:

Appointment and Term

• Appointed by the Director of DCCA
• Serves at the pleasure of the Director (no fixed term)
• Must have insurance expertise and experience
• Subject to Senate confirmation through DCCA Director appointment

Commissioner Powers for P&C Insurance

Rate Regulation in Hawaii

Hawaii uses a modified file-and-use system for most P&C insurance rates:

Rate Filing Requirements

File-and-Use Standard

• Insurers must file rates with the Insurance Division
• Rates may be used 30 days after filing unless Commissioner disapproves earlier
• Commissioner reviews for compliance with rate standards
• Rates must be adequate, not excessive, and not unfairly discriminatory

Rate Standards (HRS §431:14-102.5)

All rates must meet three criteria:

1. Adequate: Rates must be sufficient to maintain insurer solvency and pay claims
2. Not Excessive: Rates must not be unreasonably high relative to expected costs
3. Not Unfairly Discriminatory: Rate differences must be based on sound actuarial principles

File-and-Use Process

1. Insurer Files Rates: Submit rate filing with actuarial justification to Insurance Division
2. 30-Day Waiting Period: Rates become effective 30 days after filing (unless disapproved)
3. Division Review: Staff reviews filing for compliance with rate standards
4. Commissioner Action: Approve, disapprove, or request additional information
5. Disapproval Process: If disapproved, Commissioner must hold hearing and issue written order
6. Insurer Response: May modify rates or appeal disapproval

Exam Tip: Hawaii's system is "modified file-and-use" with a 30-day waiting period. This differs from pure file-and-use (immediate use) and prior approval (must wait for approval).

Rate Regulation by Line

Hawaii Revised Statutes Chapter 431

Hawaii insurance regulation is codified in Chapter 431 of the Hawaii Revised Statutes (HRS), which covers:

Key Articles of Chapter 431

Important Hawaii Statutes for P&C Producers

Insurance Division Organization

The Hawaii Insurance Division operates through several functional areas:

Key Functions

Contact Information (2026)

• Physical Address: 335 Merchant Street, Room 213, Honolulu, HI 96813
• Mailing Address: P.O. Box 3614, Honolulu, HI 96811
• Phone: (808) 586-2790
• Fax: (808) 586-2806
• Website: cca.hawaii.gov/ins
• Email: insurance@dcca.hawaii.gov

Hawaii Insurance Guaranty Association

The Hawaii Insurance Guaranty Association (HIGA) protects policyholders when P&C insurers become insolvent:

HIGA Coverage

• Pays covered claims when member insurer becomes insolvent
• Covers most P&C policies issued by licensed insurers in Hawaii
• Subject to maximum limits and exclusions
• Funded by assessments on member insurers

Coverage Limits

Exclusions from HIGA Coverage

HIGA does NOT cover:

• Ocean marine insurance
• Surplus lines insurance (unauthorized insurers)
• Portions exceeding policy limits
• Punitive or exemplary damages
• Workers' compensation (covered by separate fund)

Exam Tip: Hawaii's guaranty association covers up to $300,000 per claim. Producers must disclose that HIGA protection is available but cannot use it as a sales inducement.