Haw. Code R. § 16-6-16 - Prohibited transactions
The following practices, when engaged in by insurers in connection with the sale or placement of credit insurance, or as an inducement thereto, shall constitute unfair methods of competition and shall be subject to section 431:13-102, HRS:
(1) The offer or grant by an
insurer to a creditor of any special advantage or any service not set out in
either the group insurance contract or in the agency contract, other than the
payment of agents' commissions;
(2)
Agreement by an insurer to deposit with a bank or financial institution money
or securities of the insurer with the design or intent that the same shall
affect or take the place of a deposit of money or securities which otherwise
would be required of the creditor by such bank or financial institution as a
compensating balance or offsetting deposit for a loan or other advancement;
and
(3) Deposit by an insurer of
money or securities without interest or at a lesser rate of interest than is
currently being paid by the creditor bank or financial institution to other
depositors of like amounts. This paragraph shall not be construed to prohibit
the maintenance by an insurer of such demand deposits or premium deposit
accounts as are reasonably necessary for use in the ordinary course of the
insurer's business.
Notes
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