HAWAII REVISED STATUTES

DIVISION 2. BUSINESS

TITLE 24. INSURANCE

CHAPTER 431 [NEW]. INSURANCE CODE

ARTICLE 13. UNFAIR METHODS OF COMPETITION AND UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN THE BUSINESS OF INSURANCE

PART I. GENERAL PROVISIONS

§ 431:13-104 Favored agent or insurer; coercion of debtors

(b) No person who lends money or extends credit may:

(3) Require that any borrower, mortgagor, purchaser, insurer, broker, or agent pay a separate charge, in connection with the handling of any contract of insurance required by the loan or credit transaction, or pay a separate charge to substitute the insurance policy of one insurer for that of another. This paragraph does not include the interest which may be charged on premium loans or premium advancements in accordance with the terms of the loan or credit document;

(e) Nothing in this section shall prevent a person who lends money or extends credit from placing insurance on real or personal property in the event the mortgagor, borrower, or purchaser has failed to provide required insurance in accordance with the terms of the loan or credit document.

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