Mass merchandising of insurance and every mass merchandising plan shall be subject to the following conditions:

(1) The insurance offered shall be open to participation by or be available to every employee of the employer who meets the underwriting requirements of the insurer.
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Terms Used In Hawaii Revised Statutes 431:12-105

  • Employer: includes any firm, corporation, partnership, sole proprietorship, trust, estate, and unincorporated association or nonprofit organization; it also includes the State, any county, any municipal corporation, and any governmental unit, agency, or department thereof. See Hawaii Revised Statutes 431:12-101
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Insurer: means an insurer authorized to transact the business of motor vehicle, property, and casualty insurance in the State. See Hawaii Revised Statutes 431:12-101
  • Mass merchandising agreement: means an agreement between an insurer and an employer for the sale of insurance to the employees of the employer on a mass merchandising basis. See Hawaii Revised Statutes 431:12-101
  • Motor vehicle: means a vehicle of a type required to be registered under chapter 286, including a vehicle with less than four wheels or a trailer. See Hawaii Revised Statutes 431:12-101
  • plan: means a program, design, or scheme of the insurance to be mass merchandised, including terms, coverages, and premiums. See Hawaii Revised Statutes 431:12-101
(2) The insurance shall be offered without discrimination against any employee as to rates, forms, or coverages. Nothing herein shall preclude the establishment of different classes of risks.
(3) Upon the termination of employment or upon the termination of the mass merchandising agreement, an insured employee shall have the option of continuing the employee’s participation in a group policy or the employee’s individual policy then in force for a period of one year upon payment of the applicable premium; provided that the employee shall exercise the employee’s option within thirty days following the date of the termination. The terms, conditions, and coverages for the one-year period are those that were effective on the date of termination and shall not be more restrictive than those contained in the mass merchandising agreement, the group policy, or the individual policy in force immediately prior to the date of termination.
(4) The insurer shall issue a certificate or other evidence of participation to every member covered under a group policy and a policy of insurance to every member insured under an individual policy.
(5) The insurance offered shall not be contingent upon the purchase of any other insurance, product, or service; nor shall the purchase of any other insurance, product, or service be contingent upon the purchase of the motor vehicle, property, and casualty insurance offered.

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