The Hawaii Insurance Division published a memorandum providing its interpretation of HRS 431:9-244(b).
The statute says, "No public adjuster shall charge, agree to, or accept as compensation or reimbursement any payment, fee, commission, or other thing of value that is determined to be unreasonable by the commissioner. If the compensation is based on a charge of the insurance settlement or proceeds, the exact percentage shall be specified in the contract."
The commissioner has determined that any fee or commission over 10 percent for a catastrophe-related insurance claim settlement or over 15 percent for any insurance claim settlement is unreasonable. The amount is assessed based on the total value received by the adjuster from the insured, regardless of the form or timing of the payment.
The memorandum is effective as of August 17, 2026, and can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.