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Hawaii law requires that insurance companies notify their customers whenever they are cancelling, or otherwise, non-renewing the insurance policy. This sounds like a great safeguard to make sure every driver knows that he is either insured or not insured. Hawaii Revised Statute Section §431:10C-112, requires insurance companies to send out notices, via certified mail, in cases of non-renewal or cancellation for non-payment. Further, no cancellation or non-renewal is effective unless the insurance company can provide proof of mailing, (the certificate from the post office).

However, the effectiveness of this notice requirement in Hawaii law is questionable.  In fact, one could argue that the law may be totally worthless and not helpful to the public at all.

In reality, it appears that if a policy lapses because someone failed or forgot to pay an invoice that was sent to them, then no notice is necessary as long as the invoice was sent to the insured at least 30 days prior to the end of the previous insurance term. Huh? What about the Notice requirements?

An ordinary person might think that the Notice requirements in Hawaii provide a safeguard for coverage.  One might think: "o.k. if the insurance company is going to cancel or non-renew my policy because I forgot to pay, I will get a certified letter in the mail."

Hey, things happen–sometimes mail gets overlooked, or sometimes mail gets lost... sometimes things just slip through or gets lost.  Sometimes mail never reaches its destination at all. 

Consumers, insureds, etc., are supposed to feel safe because of Hawaii's Notice requirments. Certified mailing for cancellation or non-renewal  is supposed to help avoid the chances of cancellation or lapse due to such circumstances.  Hawaii drivers and insureds are protected by this Notice requirement, right?

Well..... that is not really the case. As long as an insurance company sends you an invoice prior to the end of your policy, (even if it is not sent via certified mail), they do not need to send the certified notice to cancel or non-renew your policy if they do not receive payment...Huh? What happened to the notice requirements?

So, the question is, WHEN would an insurance company EVER have to send a certified letter when it is going to cancel or otherwise non-renew a policy for non-payment?  Well, probably never.  In my opinion, this leaves the certified notice requirement essentially useless.

Be careful. Make sure that you are paid up on your premium. It sounds simple, but is it? Is there anyone out there who has NEVER had a piece of mail lost or delayed? It seems the whole purpose of certified notice would be to cut down on the chance of lost, overlooked or delayed notices, and, to cut down on the number of uninsured motorists.

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