Hawaii’s insurance laws require most employers to provide health coverage, require every driver to carry no-fault auto insurance (with higher minimums as of January 1, 2026), and require every employer with at least one worker to carry workers’ compensation. The rules sit mainly in Chapter 431 of the Hawaii Revised Statutes, with the Prepaid Health Care Act in Chapter 393 and workers’ compensation in Chapter 386. The Insurance Division of the Department of Commerce and Consumer Affairs enforces them.
What Coverage Hawaii Requires You to Carry
Health Insurance Through Your Employer
Hawaii is the only state that requires private employers to provide health insurance outside of federal mandates. Under the Prepaid Health Care Act (HRS Chapter 393), an employer must cover any employee who works 20 or more hours per week for four consecutive weeks and earns at least 86.67 times the state minimum hourly wage per month.1Justia. Hawaii Code 393-3 – Definitions Generally2Hawaii Department of Labor and Industrial Relations. Frequently Asked Questions About Prepaid Health Care Coverage starts after the four qualifying weeks, on the earliest date the health plan can enroll the worker.
The law also controls what the employee pays. The employer must pay at least half of the monthly premium, and the employee’s share cannot exceed 1.5% of gross monthly wages, whichever is less.3Hawaii Department of Labor and Industrial Relations. About Prepaid Health Care4State of Hawaii Department of Labor and Industrial Relations. 2026 Maximum Weekly Wage Base and Maximum Weekly Benefit Amount An employer who ignores the law can be held directly liable for the employee’s medical costs.
Auto Insurance and the 2026 Minimums
Hawaii is a no-fault auto insurance state. Your own insurer pays your medical bills after a crash, regardless of fault, and every policy must include personal injury protection (PIP) up to $10,000 per person per accident.
Minimum liability limits went up on January 1, 2026. New and renewal policies effective on or after that date must carry at least:
- $40,000 for bodily injury per person
- $80,000 for bodily injury per accident
- $20,000 for property damage per accident
The 40/80/20 figures replaced the long-standing 20/40/10 minimums.5Department of Commerce and Consumer Affairs. FAQ – Auto Insurance Minimum Limits6FindLaw. Hawaii Code 431:10C-301 – Required Motor Vehicle Policy Coverage If your policy renews in 2026 and you haven’t checked your limits, now is the time.
Workers’ Compensation for Every Employer
Under HRS Chapter 386, every employer with one or more employees must carry workers’ compensation, whether the worker is full-time, part-time, or temporary.7Hawaii Department of Labor and Industrial Relations. About Workers’ Compensation The coverage pays medical treatment, lost wages, and disability benefits for on-the-job injuries. Exceptions are narrow.
Property, Hurricane, and Flood Insurance
Hawaii does not require homeowners to carry property insurance. Mortgage lenders almost always do, as a condition of the loan. A standard homeowners policy covers hazards like fire and theft, but Hawaii’s geography creates exposures a standard policy typically excludes: volcanic eruption and lava flow, earthquakes, tsunamis, and hurricanes.
The Hawaii Hurricane Relief Fund, administered through DCCA, provides hurricane coverage mainly for apartment and condominium associations that struggle to find it on the private market. You access it through your insurance agent. For flood risk, the National Flood Insurance Program through FEMA covers residents of participating communities, and homeowners in high-risk flood zones with federally backed mortgages must carry it.8FEMA. Flood Insurance
Your Rights as a Policyholder
How Fast an Insurer Must Respond to a Claim
Hawaii puts hard deadlines on claim handling. An insurer must respond to any communication about a claim within 15 working days. After receiving proof of loss, the insurer has to affirm or deny coverage within a reasonable time, and once liability is clear and the amount is undisputed, payment must be offered within 30 calendar days. Health claims filed electronically must be reimbursed within 15 days.
PIP benefits under the no-fault auto system follow the same general pace: payment within 30 days of reasonable proof of loss, with any denial issued in writing in that window.
Plain-Language Policies
Hawaii law requires that insurance policies be written in plain language. Under HRS 431:10-104, a policy cannot be delivered unless it scores at least 40 on the Flesch reading ease test, which measures sentence length and word complexity.9Justia. Hawaii Code 431:10-104 – General Readability Requirements If your policy reads like a wall of jargon, that is a problem the law takes seriously.
Cancellation and Non-Renewal Notice
An insurer cannot cancel or non-renew without written notice. HRS 431:10-226.5 requires at least 10 days’ notice before a cancellation takes effect and at least 30 days’ notice for non-renewal. Longer periods control if another provision of the policy or code requires them, and the insurer must be able to prove it mailed the notice.10Justia. Hawaii Code 431:10-226.5 – Notice of Cancellation or Nonrenewal
Auto insurance adds more protection. Once a motor vehicle policy has been in force for more than 60 days, HRS 431:10C-111 limits cancellation to specific grounds such as nonpayment of premium or suspension or revocation of the principal operator’s license.11Justia. Hawaii Code 431:10C-111 – Cancellation and Nonrenewal of Policies Filing a claim is not, by itself, a lawful reason to drop you mid-policy.
How to Challenge a Denied Claim
The right process depends on the type of insurance. For PIP benefits denied under an auto policy, HRS 431:10C-212 sets up a formal administrative hearing. You file a written request for review with the Insurance Commissioner within 60 days of the denial, attach two copies of the denial letter, and explain why you disagree. The Commissioner holds a hearing and can either affirm the denial or order the insurer to pay.12Justia. Hawaii Code 431:10C-212 – Administrative Hearing on Insurers Denial of Claim Miss the 60 days and you lose the hearing route.
For other complaints, the DCCA Insurance Division accepts consumer complaints online or by phone. The division investigates claim-handling delays and unfair practices and can take corrective action against insurers that violate the code.
Penalties for Driving Without Insurance
Under HRS 431:10C-117, a first offense for driving uninsured brings a $500 fine, which the court can suspend if you provide proof of current coverage. The court may also allow 75 to 100 hours of community service instead of the fine. On top of that, the court must either suspend your license for three months or require you to carry a nonrefundable insurance policy for six months.13Justia. Hawaii Code 431:10C-117 – Penalties
A repeat offense within five years raises the minimum fine to $1,500 and the license suspension to one year. Further convictions in that window can bring up to 30 days in jail, revocation of your license plates, and impoundment or forced sale of the vehicle.13Justia. Hawaii Code 431:10C-117 – Penalties Courts rarely bend on repeats.
Rules for Insurance Producers
If you sell or solicit insurance in Hawaii, you need a producer license from the Insurance Division. Applicants complete pre-licensing coursework for the lines they want to sell and pass the examination governed by HRS 431:9A-105. A failed exam means reapplying, paying fees again, and rescheduling. A passing score stays valid for two years, so delaying your license application too long means retesting.14Justia. Hawaii Code 431:9A-105 – Insurance Producer License Examination
Once licensed, producers complete 24 hours of continuing education every two years, with at least 3 hours in ethics or laws and rules. Producers holding both life/health and property/casualty licenses split hours as 10 in life and health, 11 in property and casualty, and 3 in ethics.
The Commissioner can deny, suspend, or revoke a license for fraud, misrepresentation in the application, dishonest business practices, or demonstrated financial irresponsibility, and can add civil penalties on top of license action.15Justia. Hawaii Code 431:9A-112 – License Denial, Nonrenewal, Suspension, or Revocation