What to do when your insurer stops updating you or threatens to close your claim (Hawaii)

Short answer: Document everything, demand written updates, escalate inside the company, file a complaint with the Hawaii Insurance Commissioner if needed, and consult an attorney if the insurer acts in bad faith or you risk losing important rights. This is general information and not legal advice.

Disclaimer

This article explains common consumer steps under Hawaii law. It is educational only and not legal advice. Contact a licensed Hawaii attorney for advice specific to your situation.

Detailed Answer

If your insurance company refuses to update you or threatens to close your claim, act quickly. Under Hawaii law insurers must handle claims fairly. You have practical and administrative remedies that can protect your coverage rights while you decide whether to hire a lawyer.

1. Keep a clear record

   Write down every contact with the insurer: dates, times, names of representatives, the content of conversations, and any file or claim numbers. Save copies of any letters, emails, photos, or documents you submitted. If a representative makes a promise, ask them to confirm it in writing.

2. Request a written status and explanation

   Send a short written request by certified mail or email (if the insurer accepts it) asking for a written status of your claim, the reason for delay, the expected next steps, and any deadline the company says will apply if the file is closed. A written demand creates a record and forces the company to respond in writing.

3. Ask for a supervisor or different adjuster

   If the frontline representative is vague or unhelpful, politely request escalation to a supervisor or an experienced claims adjuster. Ask for the supervisors name, direct phone number, and email.

4. Preserve evidence and avoid actions that could prejudice your claim

   Keep documentation of the loss, repair estimates, receipts, photographs, and any independent appraisals. Do not sign away rights or accept a “final” payment unless you are sure the amount and coverage are correct.

5. Know your policy deadlines and contractual obligations

   Review your policy for notice and proof-of-loss deadlines. If the insurer threatens to close a file for lack of information, comply promptly with reasonable requests or send a short letter explaining when you will provide missing items and why (for example, waiting on a police report or contractor estimate).

6. Send a clear deadline and statement of intent

   If the insurer refuses to respond, send a short written letter that: (a) summarizes what you have provided, (b) asks for a written decision or status within a specific reasonable deadline (for example, 10-14 days), and (c) states that you will file a regulatory complaint and consider legal options if you do not receive a response. Keep copies and proof of delivery.

7. File a complaint with the Hawaii Insurance Division

   If the insurer will not cooperate, file a complaint with the Hawaii Department of Commerce and Consumer Affairs, Insurance Division. The Insurance Division accepts consumer complaints and can investigate unfair claim handling practices and licensing issues. For information and to submit a complaint online, see the Insurance Division complaint page: https://cca.hawaii.gov/ins/consumers/complaint/. You can also find general Insurance Division resources at https://cca.hawaii.gov/ins/.

8. Understand consumer protection and regulatory law

   Hawaii regulates insurers through the Insurance Code and consumer protection laws. The Department of Commerce and Consumer Affairs enforces unfair or deceptive practices in insurance. For the Hawaii Insurance Code and related statutes, see the Hawaii Revised Statutes (Insurance chapters): https://www.capitol.hawaii.gov/hrscurrent/Vol10_Ch0431-0468/. For unfair and deceptive trade practice law generally (consumer protection), the Hawaii Legislature website provides the full text of the Revised Statutes.

9. When to consider an attorney

   If you suspect bad faith (for example, unreasonable delays, threats to close to avoid payment, or inconsistent explanations) or if the company denies coverage and the disputed dollar amount is significant, consult a Hawaii-licensed attorney experienced in insurance disputes. An attorney can advise on settlement strategy, preserve rights, prepare demand letters, and file suit if needed. If you hire counsel, someone should tell the insurer to communicate only with your lawyer.

What “bad faith” means (briefly)

An insurer acts in bad faith when it unreasonably denies, delays, or underpays a valid claim, or when it fails to conduct an adequate investigation. Proving bad faith is fact-specific. If you believe the company behaved unfairly, keep all records, and consider a legal consult. The Insurance Division may also investigate patterns of insurer misconduct.

How the Hawaii Insurance Division can help

The Division does not take the place of a private lawsuit, but it can:

• Open a consumer complaint file and request that the insurer explain its actions;
• Investigate whether the insurer violated Hawaii insurance rules or licensing standards;
• Provide information about your rights and next steps.

Start here: https://cca.hawaii.gov/ins/consumers/complaint/.

Helpful Hints

• Always get important communications in writing. A written record helps you and the regulator or court.
• Send time-sensitive letters by certified mail, return receipt requested, or use email if the insurer accepts it and you keep records.
• Do not sign a full release of all claims without understanding that you could be giving up the right to more money later.
• If you need repairs, consider getting two written estimates and a detailed scope of work.
• Be succinct and factual in complaint forms; attach copies of key documents (police reports, photos, estimates, letters). Keep originals.
• Contact the Insurance Division early if the company is unresponsive; regulators can sometimes prompt an insurer to act.
• Ask your homeowner or auto policy who you should notify and follow those instructions strictly to protect coverage.
• If you hire an attorney, inform the insurer to communicate only through your counsel.

Final notes

Insurance claims often succeed when claimants are organized, responsive, and proactive. If the insurer continues to stonewall or threatens to close your claim without a reasonable basis, use the regulatory complaint process and speak with a Hawaii attorney about possible further action.