431:10-111

Insurance Code

§431:10H-111 Right to return; free look provision. Long-term care insurance applicants shall have the right to return the policy or certificate within thirty days of its delivery and to have the premium refunded if, after examination of the policy or certificate, the applicant is not satisfied for any reason. Long-term care insurance policies and certificates shall have a notice prominently printed on the first page or attached thereto stating in substance that the applicant shall have the right to return the policy or certificate within thirty days of its delivery and to have the premium refunded if, after examination of the policy or certificate, other than a certificate issued pursuant to a policy issued to a group defined in paragraph (1) of the definition of “group long-term care insurance” in section 431:10H-104, the applicant is not satisfied for any reason. This section shall also apply to a denial of an application for a long-term care contract. Any refund shall be made within thirty days of the return or denial. [L 1999, c 93, pt of §2; am L 2007, c 233, §7]exceed that which may be required to facilitate conversion of the policy to another plan in accordance with its terms.

(d) No part of the premium deposit fund shall be paid to the insured during the continuance of the policy except at such times and in such amounts as is specified in the policy or in the deposit agreement. [L 1987, c 347, pt of §2; am L 2010, c 116, §1(20)]policy is based solely upon the insured’s race, creed, ethnic extraction, age, sex, length of driving experience, marital status, residence, physical handicap, or because the insured has elected to obtain any required or optional coverage or deductible provided by law, the burden of proof shall rest with the insurer to prove that the refusal to continue the policy was not based on noncompliance with this subsection.

(d) An insurer may also refuse to renew motor vehicle insurance policies:

(1) If the commissioner determines that the financial soundness of the insurer would be impaired by the writing of additional policies of insurance; or

(2) The insurer ceases to write any new policies of insurance of any kind in this State.

(e) Within fifteen days of a cancellation and the return of the motor vehicle insurance identification card or a signed affidavit stating the card was lost or stolen, the insurer shall refund the pro rata unearned portion, if any, of any prepaid premiums. Premiums shall be considered “earned” as provided in section 431:10C-109. [L 1987, c 347, pt of §2; am L 1989, c 195, §33; am L Sp 1993, c 4, §3; am L 1997, c 251, §22; am L 2004, c 122, §40 and c 124, §1]

Case Notes

As this section applied to insured’s Hawaii joint underwriting plan insurance policy such that insurer could not have canceled insured’s policy unless it complied with the provisions of this section, insurer’s failure to do so rendered its cancellation invalid. 105 H. 445, 99 P.3d 96.