Hawaii’s 2010 Legislature has passed a bill, HB 1985, that will double all insurance licensing fees in Hawaii effective July 1, 2010, to June 30, 2014, including issuance, service, and renewal fees for insurers, producers, adjusters, surplus lines brokers, service contract providers, and vehicle protection product warrantors. Half of the fee is deposited to the compliance resolution fund and half of the fee is an “insurance license and service tax” which is deposited into the general fund.
According to the Department, all license application and registration forms received on and after July 1, 2010, will be subject to the new fees. Additionally, all licenses due for renewal on and after July 1, 2010, will be subject to the new fees.
For the updated schedule for producer and other licensing fees, visit http://hawaii.gov/dcca/ins/producers/fees/.
Additionally, the Legislature passed two additional laws that the Property Casualty Insurers Association of America says will increase costs for consumers.
SB 2159 nearly triples the fee from $7to $20 for insurers to obtain a driving record copy, it said. HB 2600 requires insurance companies to put systems in place to pay premium taxes monthly rather quarterly, which has been the long standing practice.
The three laws will have “the cumulative impact of the higher costs resulting from these three bills will make it more expensive for insurers to provide insurance protection in Hawaii. The higher costs of providing insurance products could ultimately be reflected in premiums paid by consumers and businesses,” said Sam Sorich, PCI vice president.
However, PCI is pleased with the passage of HB 1978, which would make it easier for a consumer’s insurance company to obtain his or her car from a tow yard. That will help to hold down auto insurance costs, the association said.
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