(a) No person, including an insurer, and a producer or affiliate of an insurer, shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, any advertisement, announcement, or statement, written or oral, which uses the existence of the Hawaii life and disability insurance guaranty association of this State for the purpose of sales, solicitation, or inducement to purchase any form of insurance covered by the Hawaii Life and Disability Insurance Guaranty Association Act. This section shall not apply to the Hawaii life and disability insurance guaranty association or any other entity which does not sell or solicit insurance.

Terms Used In Hawaii Revised Statutes 431:16-218

  • Association: means the Hawaii life and disability insurance guaranty association created under § 431:16-206. See Hawaii Revised Statutes 431:16-205
  • Contract: A legal written agreement that becomes binding when signed.
  • Member insurer: means any insurer licensed or who holds a certificate of authority to transact in this State any kind of insurance for which coverage is provided under § 431:16-203, and includes any insurer whose license or certificate of authority in this State may have been suspended, revoked, not renewed, or voluntarily withdrawn, but does not include:

    (1) A nonprofit hospital or medical service organization;

    (2) A health maintenance organization;

    (3) A fraternal benefit society;

    (4) A mandatory state pooling plan;

    (5) A mutual assessment company or any entity that operates on an assessment basis;

    (6) An insurance exchange;

    (7) An organization that has a certificate or license limited to the issuance of charitable gift annuities; or

    (8) Any entity similar to any of the above. See Hawaii Revised Statutes 431:16-205

  • Person: means any individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization. See Hawaii Revised Statutes 431:16-205
  • State: means a state, the District of Columbia, Puerto Rico, or a United States possession, territory, or protectorate. See Hawaii Revised Statutes 431:16-205
(b) Within one hundred eighty days of July 1, 1988, the association shall prepare a summary document describing the general purposes and current limitations of this part and complying with subsection (c). This document shall be submitted to the commissioner for approval. Sixty days after receiving such approval, no insurer may deliver a policy or contract described in § 431:16-203 to a policyholder or contract holder unless the document is delivered to the policyholder or contract holder at the time of delivery of the policy or contract except if subsection (d) applies. The document should also be available upon request by a policyholder. The distribution, delivery or contents or interpretation of this document shall not mean that either the policy or the contract or the holder thereof would be covered in the event of the impairment or insolvency of a member insurer. The description document shall be revised by the association as amendments to this part may require. Failure to receive this document does not give the policyholder, contract holder, certificate holder, or insured any greater rights than those stated in this part.
(c) The document prepared under subsection (b) shall contain a clear and conspicuous disclaimer on its face. The commissioner shall promulgate a rule establishing the form and content of the disclaimer. The disclaimer shall:

(1) State the name and address of the Hawaii life and disability insurance guaranty association and the insurance division;
(2) Prominently warn the policy or contract holder that the Hawaii life and disability insurance guaranty association may not cover the policy or, if coverage is available, it will be subject to substantial limitations and exclusions and be conditioned on continued residence in this State;
(3) State that the insurer and its producers are prohibited by law from using the existence of the Hawaii life and disability insurance guaranty association for the purpose of sales, solicitation, or inducement to purchase any form of insurance;
(4) Emphasize that the policy or contract holder should not rely on coverage under the Hawaii life and disability insurance guaranty association when selecting an insurer; and
(5) Provide other information as directed by the commissioner.
(d) No insurer or producer may deliver a policy or contract described in section 431:16-203(b)(1) and excluded under section 431:16-203(b)(2)(A) from coverage under this part unless the insurer or producer, prior to or at the time of delivery, gives the policy or contract holder a separate written notice which clearly and conspicuously discloses that the policy or contract is not covered by the Hawaii life and disability insurance guaranty association. The commissioner shall by rule specify the form and content of the notice.

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