A mass merchandising agreement may provide for the collection of premiums from employees by payroll deductions, assessments, or otherwise, and the remittance of the same to the insurer by the employer; provided that:

(1) No such collection and remittance of premiums by the employer shall constitute collection of premium within the meaning of this code;
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Terms Used In Hawaii Revised Statutes 431:12-107

  • Employees: includes compensated officers, managers, and employees of a firm, corporation, partnership, sole proprietor, trust, estate, or members of an unincorporated association or nonprofit organization. See Hawaii Revised Statutes 431:12-101
  • 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
  • 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
(2) No act of furnishing information about such collection method by the employer to its employees shall constitute solicitation of applications for insurance; and
(3) The employer shall not be considered an insurance producer for purposes of this code by virtue of the employer’s collection and remittance of premiums or the furnishing of information about such collection method.

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