HI SB2701

Amends Chapter 488 of Hawaii Revised Statutes to update regulation of prepaid legal services plans by transferring enforcement authority from the Department of Commerce and Consumer Affairs to the Insurance Commissioner.

Requires plan administrators to maintain accumulated premium funds in federally insured accounts separate from other funds, with plans holding trustee responsibility for all collected funds.

Mandates plan administrators obtain bonds approved by the Insurance Commissioner to protect plan members, with alternative forms of security (letters of credit, certificates of deposit) permitted.

Changes annual financial reporting requirement from thirty days to sixty days after fiscal year end, requiring certified public accountant compilation, review, or audit instead of sworn statements.

Establishes penalties for non-compliance including fines up to $1,000 per day, and grants the Insurance Commissioner authority to deny, suspend, or revoke plan approvals for violations.