2026-09-10 · Hawaii · Regulation

Hawaii’s Insurance Commissioner drew a line on public adjuster compensation on August 17, 2026 — three weeks before Hurricane Lala made it matter.¹

Commissioner’s Memorandum 2026-6A, “Public Adjuster Compensation,” rests on HRS § 431:9-244(b) and follows NAIC Model Law 228 § 14(d). It applies to all public adjuster agreements executed on or after August 17, 2026.

The thresholds

• Compensation exceeding 10% for a catastrophic insurance claim settlement is presumed unreasonable.
• Compensation exceeding 15% for any insurance claim settlement is presumed unreasonable.
• The same thresholds apply to hourly-billed engagements, measured on the aggregate fee.
• Reasonableness is assessed on total value received by the adjuster from or on behalf of the insured, regardless of form or timing of payment.

What counts as a catastrophe claim

The memorandum defines it precisely: a claim arising directly from an event that is the subject of a gubernatorial state-of-emergency proclamation or a county mayor’s local state-of-emergency proclamation under HRS § 127A-14. The 10% presumption applies to claims arising from that event during the period specified in the proclamation, including extensions.

So the applicable ceiling is not a judgment call — it is determined by whether a proclamation covers the event and the date.

1. Commissioner's Memorandum 2026-6A, “Public Adjuster Compensation” (August 17, 2026) ↩
2. DCCA Insurance Division, Declaration Regarding Assistance of Nonresident Independent Adjusters Due to Hurricane Lala and Hurricane Lowell (September 8, 2026) ↩