§431:13-103 Unfair methods of competition and unfair or deceptive acts or practices defined. (a) The following are defined as unfair methods of competition and unfair or deceptive acts or practices in the business of insurance:

(1) Misrepresentations and false advertising of insurance policies. Making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which:

(A) Misrepresents the benefits, advantages, conditions, or terms of any insurance policy;

(B) Misrepresents the dividends or share of the surplus to be received on any insurance policy;

(C) Makes any false or misleading statement as to the dividends or share of surplus previously paid on any insurance policy;

more>> http://www.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435E/hrs431/HRS_0431-0013-0103.htm 

§480-4 Combinations in restraint of trade, price-fixing and limitation of production prohibited. (a) Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce in the State, or in any section of this State is illegal.

(b) Without limiting the generality of the foregoing no person, exclusive of members of a single business entity consisting of a sole proprietorship, partnership, trust, or corporation, shall agree, combine, or conspire with any other person or persons, or enter into, become a member of, or participate in, any understanding, arrangement, pool, or trust, to do, directly or indirectly, any of the following acts, in the State or any section of the State:

§480-9 Monopolization. No person shall monopolize, or attempt to monopolize, or combine or conspire with any other person to monopolize any part of the trade or commerce in any commodity in any section of the State. [L 1961, c 190, §7; Supp, §205A-7; HRS §480-9]

[§431:10C-313.6] Original equipment manufacturer's and like kind and quality parts. (a) An insurer shall make available a choice to the insured of authorizing a repair provider to utilize a like kind and quality part of an equal or better quality than the original equipment manufacturer part if such part is available or an original equipment manufacturer part for motor vehicle body repair work. If the insured or claimant chooses the use of an original equipment manufacturer part, the insured or claimant shall pay the additional cost of the original equipment manufacturer part that is in excess of the equivalent like kind and quality part, unless original equipment parts are required by the vehicle manufacturer's warranty.

(b) A like kind and quality part under subsection (a), of an equal or better quality than the original equipment manufacturer part, shall carry a guarantee in writing for the quality of the like kind and quality part for not less than ninety days or for the same guarantee period as the original equipment manufacturer part, whichever is longer. The guarantee shall be provided by the insurer.

[§431:10C-313.5] Preferred repair provider. An insurer may have a preferred repair provider program. All insurers having such a program shall:

(1) Make appropriate rate filings with the insurance commissioner to reflect the reduced premiums; and

§431:10C-310 Total loss motor vehicle claims: replacement. When an insurer elects under section 431:10C-309 to offer the insured a replacement vehicle as defined in section 431:10C-103, the insurer shall comply with the following requirements:

(1) The claim file, which is maintained by the insurer, shall contain a description of the replacement vehicle, including the vehicle identification number and a schedule of options;

(2) Replacement vehicles of the current model plus the three previous model years shall be purchased through motor vehicle dealers licensed under chapter 437. This requirement may be waived in writing by the insured. The signed waiver shall be maintained in the insurer's claim file;

(3) If the insurer offers a replacement vehicle to the insured and the insured rejects the offer and elects a cash settlement instead of the replacement vehicle, the insurer need pay only the amount it would have otherwise paid on the replacement vehicle. Evidence of the insured's rejection shall be apparent in the file; and

(4) If the insurer offers a replacement vehicle to the insured and the insured rejects the offer and wants another vehicle substantially similar in value, the insurer need pay only the amount it would have otherwise paid on the replacement vehicle. The insurer shall maintain in the claim file the insured's written waiver that the acceptance of another vehicle is of the insured's own free will and choice. [L 1987, c 347, pt of §2; am L 1997, c 251, §48]

more>> http://www.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435E/hrs431/HRS_0431-0010C-0310.htm 

§431:10C-311 Total loss motor vehicle claims: cash settlement. (a) When an insurer elects under section 431:10C-309 to offer the insured a cash settlement for a total loss motor vehicle claim, the following shall apply:

(1) The cash settlement shall be based upon the retail value of the motor vehicle as determined from a source or sources which are reflective of the market value of the total loss vehicle.

(2) The use of dealer quotations (when the vehicle is available at the quoting dealer's lot) and newspaper advertisements may be used in lieu of the source generally used by the insurer, if the claim file reflects that the vehicle was not quoted in the source generally used by the insurer or the source was not reflective of the market value. Dealer quotations and newspaper advertisements shall not be considered sole sources reflective of market values. When dealer quotations are used, the vehicle identification number shall be contained in the insured's claim file;

(3) Estimates from at least three licensed dealers may be used when vehicles are not quoted in the source usually used by the insurer and are not available for replacement. Dealer estimates shall take into consideration the condition of the insured vehicle prior to the loss; and

(4) The documentation of the determination of the total loss vehicle market value shall be maintained in the insurer's claim file.

(b) If within thirty days of the receipt of the settlement by the insured (i) the insured cannot purchase a comparable vehicle of like kind and quality for the market value determined by the insurer before applicable deductions, and (ii) the insured has located, but not purchased, a comparable vehicle of like kind and quality in excess of such market value, the following procedure shall apply:

(1) The insurer shall locate a comparable vehicle of like kind and quality for the insured for the market value determined by the insurer at the time of settlement. Any comparable vehicle shall be available through licensed dealers;

(2) The insurer shall either pay the insured the difference between the market value before applicable deductions and the cost of the comparable vehicle of like kind and quality which the insured has located, or negotiate and effect the purchase of this vehicle for the insured;

(3) The insurer may conclude the loss settlement as provided for under the appraisal section of the insurance contract in force at the time of loss. This appraisal shall be considered as binding against both parties, but shall not preclude or waive any other rights either party has under the insurance contract or at common law; or

(4) The insurer shall provide written notice to the insured at the time of settlement that if within thirty days of the receipt of the settlement by the insured, the insured cannot purchase a comparable vehicle of like kind and quality for the market value determined by the insurer before applicable deductions and the insured has located, but not purchased a comparable vehicle of like kind and quality in excess of such market value, the insurer shall reopen its claim file.

(c) Deductions of the kind commonly referred to as "get ready to go" and "dealer prep" or dealer preparation charges are prohibited. [L 1987, c 347, pt of §2]

more>> http://www.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435E/hrs431/HRS_0431-0010C-0311.htm 

§437B-7.5 Requirements for licensing of repair dealer; inspection. (a) Before a motor vehicle repair dealer license is granted by the board, the applicant shall establish that the applicant is or employs a full-time motor vehicle mechanic licensed with the board, and has a repair facility and the equipment necessary to properly perform work in the specialty or area of certification for which licensure is requested.

(b) The board may inspect an applicant's repair facility and equipment prior to licensing, and may conduct subsequent inspections of repair facilities to verify continued compliance with subsection (a). [L 1993, c 110, §1; am L 1998, c 199, §5]

§437B-11 Prohibited practices. In addition to any other grounds for disciplinary action authorized by law, the following acts or omissions related to the repair of motor vehicles shall be grounds for invoking the enforcement procedures of section 437B-12:

(1) Making or authorizing in any manner or by any means whatever any statement written or oral which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading;

(2) Causing or allowing a customer to sign any work order that does not state the repairs requested by the customer or the automobile's odometer reading at the time of repair;

(3) Failing or refusing to give to a customer a copy of any document requiring the customer's signature, as soon as the customer signs the document;

(4) Any other conduct that constitutes fraud;

(5) Conduct constituting gross negligence;

(6) Failure to comply with this chapter or rules adopted pursuant to it;

(7) Any wilful departure from or disregard of accepted practices or professional standards;

(8) Making false promises of a character likely to influence, persuade, or induce a customer to authorize the repair, service, or maintenance of a motor vehicle;

(9) Having repair work subcontracted without the knowledge or consent of the customer unless the motor vehicle repair dealer, mechanic, or apprentice demonstrates that the customer could not reasonably have been notified;

(10) Conducting the business of motor vehicle repair in a place other than stated on the license except that mobile repair facilities may be permitted if the license so indicates;

(11) Rebuilding or restoring of rebuilt vehicles as defined in section 286-2 in such a manner that it does not conform to the original vehicle manufacturer's established repair procedures or specifications and allowable tolerances for the particular model and year;

(12) Subcontracting, recommending, or referring motor vehicle repair work to, or in any way assisting, a motor vehicle repair dealer or mechanic whose license or certification is not in full compliance with this chapter;

(13) Failure to directly supervise a motor vehicle mechanic apprentice/trainee or motor vehicle mechanic helper;

(14) Servicing mobile air conditioners without using refrigerant recovery and recycling equipment that is certified by Underwriters Laboratories, Incorporated or was in use by the motor vehicle repair industry prior to December 31, 1989;

(15) Performing service on any motor vehicle or mobile air conditioner after January 1, 1994, without successful completion of an appropriate training course in the recovery and recycling of CFC and HCFC refrigerants, which included instruction in the proper use of refrigerant recovery and recycling equipment that is certified by Underwriters Laboratories, Incorporated; and

§437B-15 Estimate for labor and parts. (a) The motor vehicle repair dealer, mechanic, or apprentice shall give the customer a written estimated price for labor and parts necessary for a specific job prior to commencement of the job. Such written estimated price need not be given if waived in writing by the customer. No charge in excess of fifteen per cent of the estimated price, if the estimated price is less than $100, or ten per cent of the estimated price, if the estimated price is in excess of $100, shall be charged for parts and labor supplied in excess of the estimated price, without the prior written or oral consent of the customer. Such consent shall be obtained at some time after it is determined that the estimated price is insufficient and before the labor not estimated is performed or the parts not estimated are supplied. This provision may be waived in writing by the customer, provided that such waiver by its terms shall be effective only after the dealer or mechanic has made reasonable efforts to contact the customer. The form and content of any waiver shall be as prescribed by rule of the board. Nothing in this section shall be construed as requiring a motor vehicle repair dealer, mechanic, or apprentice to give a written estimated price if the dealer, mechanic, or apprentice does not agree to perform the requested service. A reasonable fee may be charged for making the estimate.

(b) If any crash parts manufactured by anyone other than the original vehicle equipment manufacturer are to be supplied or installed, the estimate shall clearly state that fact and identify each of those crash parts. In identifying the crash parts which are not manufactured by the original vehicle equipment manufacturer, the motor vehicle repair dealer, mechanic, or apprentice may include information on any applicable manufacturer's warranty and information about the part's compliance with any certified testing program.

(c) No motor vehicle repair dealer, mechanic, or apprentice shall use crash parts which are not manufactured or supplied by the original vehicle equipment manufacturer unless the owner of the motor vehicle accepts the use of such parts and signs the estimate acknowledging the use and source of the crash parts. [L 1975, c 143, pt of §2; am L 1976, c 38, §1; am L 1987, c 272, §3; am L 1990, c 78, §1]

[§481P-3] Abusive telemarketing acts or practices. It is an abusive telemarketing act or practice and a violation of this chapter for any seller or telephone solicitor to engage in the following conduct:

(1) Threaten, intimidate, or use profane or obscene language;

(2) Request a fee to remove derogatory information from or improve a consumer's credit history or credit record until:

(A) The time frame in which the seller or telephone solicitor has represented that all of the goods or services will be provided to that consumer has expired; and

(B) The seller or telephone solicitor has provided the consumer with documentation in the form of a credit report from a credit reporting agency demonstrating that the promised results have been achieved, the report having been issued more than six months after the results were achieved. Nothing in this chapter should be construed to affect the requirement of the Fair Credit Reporting Act, 15 U.S.C. 1681b, that a consumer report may only be obtained for a specified permissible purpose;

(3) Request or receive payment from a consumer to recover or otherwise aid in the return of money or any other item lost by the consumer in a telemarketing transaction, until seven business days after the money or other item is delivered to the consumer;

§431:9A-103 License required. (a) A person shall not sell, solicit, or negotiate insurance in this State for any line, class, or classes of insurance unless the person is licensed for the proper line or class of authority in accordance with this article.

(b) The proper line of authority for which a producer is required to be licensed relative to sale, solicitation, or negotiation of any class or type of insurance set forth in sections 431:1-204 to 431:1-211 is set forth in the following table:

Class Required Line of Authority

Life Life

Accident and Health or Sickness Accident and Health or Sickness

Property Property

Marine and Transportation Casualty and Property

Vehicle Casualty and Property

General Casualty Casualty

Surety Surety

Title Title

(c) Sale, solicitation, or negotiation of variable life and variable annuity products requires licensing in the variable life and variable annuity products line of authority.

(d) Sale, solicitation, or negotiation of personal lines insurance requires licensing in the personal lines line of authority or the property and casualty lines of authority.

(e) Sale, solicitation, or negotiation of limited lines insurance, including limited line credit and limited line travel insurance, is permitted pursuant to section 431:9A-107.5. [L 2001, c 216, pt of §2; am L 2002, c 155, §27]

more>> http://www.capitol.hawaii.gov/hrscurrent/vol09_ch0431-0435e/hrs431/hrs_0431-0009a-0103.htm 

[431:9A-142] Requirements for license and renewal. (a) Applicants seeking licensure under this part shall comply with applicable licensing requirements under chapter 431.

(b) The commissioner may issue a limited lines motor vehicle rental company producer license to a motor vehicle rental company; provided:

(1) A motor vehicle rental company having a limited lines motor vehicle rental company producer's license shall also authorize employees of the motor vehicle rental company to act individually on behalf of, and under the supervision of, the motor vehicle rental company in solicitation and sale of insurance coverages;

(2) A limited lines motor vehicle rental company producer and its employees shall not advertise or otherwise represent themselves as licensed insurers, insurance agents, or insurance brokers;

(3) A limited lines motor vehicle rental company producer may solicit or sell insurance at the rental office or by preselecting coverages in master, corporate, group rental, or individual agreements on policy forms approved by the commissioner in any of the following general categories:

(A) Personal accident insurance covering the risks of travel to the motor vehicle renter and other occupants of the rental vehicle for accident and health insurance covering accidental death or dismemberment and reimbursement for medical expenses resulting from an occurrence during the rental period;

more>> http://www.capitol.hawaii.gov/hrscurrent/vol09_ch0431-0435e/hrs431/hrs_0431-0009a-0142.htm 

§431:9A-107 License. (a) Except as provided in section 431:9A-112, a person who has met the requirements of sections 431:9A-105 and 431:9A-106 shall be issued an insurance producer license. An insurance producer may receive a license in one or more of the following lines of authority:

(1) Life: insurance coverage on human lives, including benefits of endowment and annuities, benefits in the event of death or dismemberment by accident, and benefits for disability income;

(2) Accident and health or sickness: insurance coverage for sickness, bodily injury, or accidental death and benefits for disability income;

(3) Property: insurance coverage for the direct or consequential loss or damage to property of every kind;

§431:10C-313 Insurer practices regarding loss of use, storage and towing, and betterment. (a) In motor vehicle property damage liability claims in which liability is reasonably clear, the insurer shall pay for the reasonable and necessary costs, in direct proportion to the extent of its liability, incurred in the rental of another motor vehicle as long as the loss of use claim is submitted and substantiated.

(b) (1) The insurer shall provide reasonable notice to an insured prior to termination of payment for motor vehicle storage charges and document the notice in the claim file. Sufficient notice to the insured to allow the insured to remove the vehicle from storage prior to the termination of payment shall constitute reasonable notice.

(2) The insurer shall pay any and all reasonable towing charges, irrespective of the towing company used by the insured, unless the insurer has provided the insured with the name of a specific towing company prior to the insured's use of another towing company. Any determination of reasonable towing charges shall consider policy coverage as well as the cost and distances involved in each claim.

(3) An insurer shall make no advance charge deductions for storage and towing charges unless excessive charges have resulted from the insured's own actions. The insurer shall itemize each advance charge deduction and maintain in its claim file documentation of the reasons and dollar amounts involved in each deduction.

(c) Betterment deductions are allowable only if the deductions:

(1) Reflect a measurable decrease in market value attributable to the poorer condition of, or prior damage to, the insured vehicle;

(2) Are for prior wear and tear, missing parts and rust damage that is reflective of the general overall condition of the vehicle considering its age; provided that any deductions for this type of damage shall not exceed $500; and

(3) Are measurable, itemized, specified as to dollar amount, and documented in the insurer's claim file.

(d) No insurer shall require the insured or claimant to supply parts for replacement. [L 1987, c 347, pt of §2]