(a) In addition to the right and duty of examination under article 2, the commissioner shall have the right and the duty of visitation, inspection and audit of all business records, including internal memoranda, audits and correspondence related in any way to the insurer‘s motor vehicle insurance business in this State.
Terms Used In Hawaii Revised Statutes 431:10C-215
Contract: A legal written agreement that becomes binding when signed.
Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
Insurer: means every person holding a valid certificate of authority to engage in the business of making contracts of motor vehicle insurance in this State. See Hawaii Revised Statutes 431:10C-103
Motor vehicle: means any vehicle of a type required to be registered under chapter 286, including a trailer attached to such a vehicle, but not including motorcycles and motor scooters. See Hawaii Revised Statutes 431:10C-103
(b) The commissioner shall, in the commissioner’s discretion, cause an audit to be made of all or any segment of the motor vehicle insurance books and business records of any insurer by the staff of the division or by an independent contract examiner. A copy of every audit, internal or external, performed by any insurer of any aspect of its motor vehicle books and business records shall be submitted immediately upon completion to the commissioner.(c) The commissioner shall assess and collect from each insurer, self-insurer, and from every applicant for a certificate of self-insurance or a license to transact a motor vehicle insurance and optional additional insurance business in this State, such portion of the full cost of every audit, inspection, examination, visitation, and other services related to motor vehicle insurance required by this or any other article, or performed by the commissioner in the commissioner’s discretion under this article or this code, as the commissioner deems equitable in the rendering of the service. Assessments collected shall be paid into the compliance resolution fund.(d)(1) Each insurer licensed to transact motor vehicle insurance or optional additional insurance business in this State shall provide the commissioner with periodic reports on every aspect of the motor vehicle insurance and the optional additional insurance business the insurer transacts in this State, including, but not limited to reports on the investment, reserve, reinsurance, loss and profit experience, ratemaking and schedules, claims received and paid; and(2) Each insurer subject to this section shall, not less frequently than quarterly, maintain a report of the details of each claim received, claim paid, application for and sale of a motor vehicle insurance policy, each termination and renewal refusal notice posted, and each cancellation and refusal to renew effected on both motor vehicle insurance and optional additional insurance policy transactions. The insurer shall make available and submit a report to the commissioner at the commissioner’s request.(e) Any insurer failing to report information in the manner and within the time required by the commissioner, or failing fully to cooperate with the commissioner and the commissioner’s staff in the fulfillment of their duties under this article and this code shall be subject to the penalty provided in § 431:14-117.
