HRS §386-199
Rules for service companies and administrators
This section stops service companies and administrators from being connected to each other through jobs or money. It also says service contracts must state that the service company will finish handling all claims from the contract period, unless the insurance commissioner allows something different.
businesses
The statute, as written — Service companies
(a) No service company or its employees, officers, or directors shall be an employee, officer, or director of, or have either a direct or indirect financial interest in, an administrator. No administrator or its employees, officers, or directors shall be an employee, officer, or director of, or have either a direct or indirect financial interest in, a service company. (b) The service contract shall state that unless the insurance commissioner permits otherwise the service company shall handle all claims and other obligations incurred during the contract period to their conclusion.
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