Hawaii Life Insurance

Hawaii life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

  • Briefly describes Hawaii life insurance regulations.

  • Explains the protection of the Hawaii Guaranty Association.

  • Links to more information about life insurance in Hawaii

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Hawaii life insurance rights and regulations

The insurance industry in the State of Hawaii is regulated under Title 24 of the state's code. Through these laws, claims procedures and policy requirements are overseen by the state in order to protect you, the consumer.

One such protection is the "free look" provision guaranteed by Hawaii law. Under this rule, a new policyholder may choose to decline coverage during the first ten days of a policy's life, and still receive a full premium refund.

While Hawaii law does not require that claims be settled within a specific time period, all insurance companies must have a reasonable standard for the prompt investigation of claims. After an insurer has recieved a claim (with the policy and proof of death), they should deny or affirm coverage within a reasonable time, and offer payment within 30 days of the settlement date.

Beneficiaries are entitled to interest on these benefits, and this should be calculated from the date of death through settlement, and included in the final payment.

Life insurance policyholders in Hawaii are also entitled to the release of medical information upon request within a reasonable amount of time (or not more than 30 days).

However, Hawaii law also extends some protections to life insurance companies. Insurers can deny coverage to any applicant who has misrepresented herself on the policy or application, and are not required to refund premiums should this occur. (Although refund policy may vary from company to company.)

Insurance companies in Hawaii usually have two years in which to contest information on a policy but there is no state-required time frame, so this too may vary from company to company.

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If you are ready to apply for a Hawaii term life insurance policy, or if you just want a quick online quote, visit Efinancial now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.

The State of Hawaii Life Insurance Guaranty Association

If your company is licensed in the State of Hawaii, then thay belong to the Hawaii Life and Disability Insurance Guaranty Association, an organization designed to protect life insurance policyholders in Hawaii in case of insurance company insolvency. Insurers pay a fee to belong to the association, which in turns, will provide some coverages should the insurer go bankrupt.

However, there are some restrictions. Compensation for death benefits is limited to $300,000 and cash surrender to $100,000. And the insurer must be licensed in Hawaii. To check the status of your insurer, you can call the Department of Insurance at 586-2790.

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Apply for a quote with confidence at Efinancial
(for Hawaii term life insurance), or InsureME.
Your insurer will be licensed in Hawaii.

Other notes on Hawaii life insurance

Insurance illustrations, which are financial projections made by insurers, are regulated by the state of Hawaii.

Viatical settlements, which are agreements between an insured and a third party, are also regulated by the state. Under a viatical settlement, a third party buys a life policy from the insured, pays the premiums, and becomes the policy's beneficiary. These settlements are subject to the jurisdiction of the Securities Enforcement Branch of DCCA.

More HI life insurance help

If you want more help getting the best value on your HI life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about HI life insurance laws and regulations, visit the state's official website at the Hawaii Department of Commerce and Consumer Affairs, Insurance Division.

Learn even more:

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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