Hawaii Life Insurance
- Hawaii life insurance regulations may differ from those in other states. Explore the state-specific laws governing the industry and how they affect consumers.
With residents expected to live 81 years on average, Hawaii has one of the highest life expectancy rates in the United States. Although this statistic may influence how Hawaiian citizens view life insurance coverage, factors such as state insurance laws can also play a role in making policy decisions. By understanding the basics of Hawaii life insurance and the resources available to consumers, current and potential policyholders can better assess their options and make smart decisions about coverage.
Hawaii Life Insurance Rules and Specifics
The State of Hawaii’s Insurance Division oversees the life insurance industry, ensuring that Hawaiian insurers' policies and services meet acceptable standards as defined by Title 24 of the Hawaii Revised Statutes. These statutes provide standardization across the state, requiring life insurance companies to provide several consumer protections, including:
- A 10-day free-look period: If you purchase a life insurance policy in Hawaii, you’re entitled to a 10-day free-look period. During this time, you may cancel your policy for any reason and receive a full refund, including relevant administrative fees.
- A 30-day grace period: If you miss a premium payment, your insurer must grant you 30 days in which to bring your account current. During this time, the insurer may not decrease or terminate your benefits.
- Timely claims payment: When you file a life insurance claim with an insurer in Hawaii, the company must pay it within 30 days. If timely payment isn’t made, the insurer must pay interest, which begins accruing on the date of the insured's death.
- Lost benefit guarantees: If your insurance carrier becomes insolvent, you’ll receive protection through the state’s guaranty organization, up to a maximum of $300,000 for death benefits and up to $100,000 for the policy's cash surrender value.
Life Insurance Resources in Hawaii
Hawaii residents who have insurance-related problems or questions can seek assistance from one of two state agencies: the Hawaii Insurance Division and the Hawaii Life & Disability Insurance Guaranty Association.
Hawaii Insurance Division
Most general insurance-related questions and concerns should be directed to the Hawaii Insurance Division. This government agency, which oversees statewide insurance transactions, offers several important services to consumers:
- Handling consumer complaints
- Researching allegations of insurance fraud
- Educating consumers about their life insurance options
The Hawaii Insurance Division also provides a link to the National Association of Insurance Commissioners' lost policy locator. Through this tool, named beneficiaries and authorized representatives of an insured's estate can receive help locating missing life insurance policies and annuity contracts.
Hawaii Life & Disability Insurance Guaranty Association
When a licensed Hawaiian insurance company fails, the Hawaii Life & Disability Insurance Guaranty Association provides state-guaranteed protections to the company's policyholders and their designated beneficiaries. The association is responsible for continuing coverage of lost benefits up to the state-defined limits. Coverage includes individual or group life insurance plans and individual annuity contracts.