Public Adjuster Compensation

JOSH GREEN, M.D. GOVERNOR | KE KIAʻĀINA SYLVIA LUKE LIEUTENANT GOVERNOR | KA HOPE KIAʻĀINA STATE OF HAWAII | KA MOKUʻĀINA ʻO HAWAIʻI DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS KA ʻOIHANA PILI KĀLEPA INSURANCE DIVISION 335 MERCHANT STREET, ROOM 213, HONOLULU, HAWAII 96813 P.O. BOX 3614, HONOLULU, HAWAII 96811 Phone Number: 1-844-808-DCCA (3222) Fax Number: (808) 587-6714 cca.hawaii.gov/ins/ NADINE Y. ANDO DIRECTOR | KA LUNA HOʻOKELE SCOTT K. SAIKI INSURANCE COMMISSIONER August 17, 2026 MEMORANDUM 2026-6A To: All Public Adjusters Licensed to do Business in the State of Hawaii From: Scott K. Saiki, Insurance Commissioner Subject: Public Adjuster Compensation This Memorandum is directed to all public adjusters licensed to do business in the State of Hawaii. The purpose of this Memorandum is to clarify the Commissioner’s interpretation and enforcement of Hawaii Revised Statutes (“HRS”) § 431:9-244(b), which states, “[n]o public adjuster shall charge, agree to, or accept as compensation or reimbursement any payment, fee, commission, or other thing of value that is determined to be unreasonable by the commissioner. If the compensation is based on a charge of the insurance settlement or proceeds, the exact percentage shall be specified in the contract.” HRS § 431:9-244(b) authorizes the Commissioner to determine whether such compensation is unreasonable. To promote fairness and protect consumers, the Division issues this guidance in accordance with the National Association of Insurance Commissioner’s Model Law 228 § 14(d). The Commissioner finds that any fee, commission or other compensation to a public adjuster exceeding ten percent (10%) for any catastrophic insurance claim settlement or fifteen percent (15%) for any insurance claim settlement shall be presumed unreasonable under HRS § 431:9-244. When the public adjuster’s fee, MEMORANDUM 2026-6A August 17, 2026 Page 2 commission, or compensation to the public adjuster is calculated on an hourly basis, any aggregate fee, commission, or other compensation exceeding ten percent (10%) for any catastrophic insurance claim settlement or fifteen percent (15%) for any insurance claim settlement shall be presumed unreasonable under HRS § 431:9-244. Under any of these circumstances, the reasonableness of compensation will be assessed based on the total value received by the adjuster from or on behalf of the insured, regardless of the form or timing of payment. For the purposes of this Memorandum, a “catastrophic insurance claim” means an insurance claim for loss or damage arising directly from an event that is the subject of a proclamation declaring a state of emergency by the Governor of the State of Hawaii or a local state of emergency by the mayor of a county pursuant to HRS § 127A-14. The ten percent (10%) presumption shall apply to claims arising from the event during the period specified in the applicable proclamation, including any extension thereof. This Memorandum applies to all public adjuster agreements executed on or after August 17, 2026. Please contact the Insurance Division at insurance@dcca.hawaii.gov or 1-844- 808-3222 if you have any questions.