HRS §431:9J-109
How administrators can be paid for handling claims
This section says that an administrator's pay for adjusting or settling claims cannot go up based on how many claims happen. However, pay can still be based on the amount of premiums or charges collected, or on the number of claims paid or processed.
The statute, as written — Compensation of administrator
Compensation to an administrator for adjusting or settling claims shall not be increased contingent on claim experience. This section shall not prevent the compensation of an administrator from being based on premiums or charges collected or number of claims paid or processed.
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