SB 1563 Hawaii Senate · 2025 Regular Session

RELATING TO INSURANCE.

Summary

Establishes rate transparency requirements for insurance companies operating in the State. Establishes the Office of Insurance Consumer Affairs within the Insurance Division of the Department of Commerce and Consumer affairs to provide oversight, information, and consumer advocacy. Appropriates funds. Effective 7/1/2050. (SD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 22, 2025 Last action Feb 14, 2025

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What changed between versions

SB1563 → SB1563_SD1 · 7 edits

MODERATE

This bill introduces new requirements for insurance companies in Hawaii to disclose how they calculate rates and establish a new Office of Insurance Consumer Affairs to oversee the process. The changes aim to increase transparency, protect consumers from unfair rate hikes, and provide mechanisms for dispute resolution. The bill also appropriates funding for implementation and sets a future effective date.

Scope change

The bill applies to all insurance companies operating in Hawaii and establishes a new state office specifically for consumer advocacy and oversight.

REQUIREMENT

Insurance companies must now provide detailed explanations of rate-setting factors, including specific variables like credit scores and geographic location, to all policyholders.

Policyholders must receive at least 60 days' notice before any rate increases exceeding 10% take effect, with clear explanations of the reasons and impact.

NEW_ENTITY

A new Office of Insurance Consumer Affairs is established within the Department of Commerce and Consumer Affairs to advocate for policyholders, monitor compliance, and provide dispute resolution services.

ENFORCEMENT

New penalties include fines up to $50,000 per violation, restitution payments, and potential license suspension for repeated violations.

TIMELINE

The bill sets an effective date of July 1, 2050, which is significantly later than typical legislation.

FISCAL

Funding is appropriated from general revenues for fiscal years 2025-2026 and 2026-2027 to implement the new requirements.

TECHNICAL

The document format changed from a traditional legislative bill layout to a structured data format with metadata and metadata fields.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Committee

Reported from CPN (Stand. Com. Rep. No. 494) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 10, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Richards, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 6, 2025

Upper · Passed

The committee(s) on CPN has scheduled a public hearing on 02-10-25 9:35AM; Conference Room 229 & Videoconference.

upper

Jan 27, 2025

Committee

Referred to CPN, WAM.

upper

Jan 23, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 22, 2025

Introduced

Pending Introduction.

upper

1 primary · 0 co-sponsors