HI SB1563

Establishes rate transparency requirements for insurance companies operating in Hawaii, requiring them to provide detailed explanations of rate-setting practices to all policyholders upon policy issuance or renewal.

Creates an Office of Insurance Consumer Affairs within the Department of Commerce and Consumer Affairs' Insurance Division to advocate for policyholders, monitor compliance, develop educational materials, and provide mediation and arbitration services.

Requires insurance companies to submit rate-setting methodologies annually to the office for approval and to make non-proprietary summaries available on the department website.

Mandates at least 60 days advance notice for material rate changes (premium increases over 10%), with clear explanations of reasons and policyholder dispute rights.

Establishes penalties for non-compliance including fines up to $50,000 per violation, restitution to affected policyholders, and potential license suspension for repeated violations; effective July 1, 2050.