Insurance generally refers to a legally enforceable contract—known as an insurance policy—in which an insurance company (the insurer) agrees to (1) defend the person or entity who purchased the policy (the insured) against future claims or lawsuits; and (2) pay for losses (usually financial) that are covered under the written terms of the insurance policy.

These two primary legal obligations of an insurer under a liability insurance policy are known as the duty to defend and the duty to indemnify.

Insurance may be purchased to cover a wide range of future claims or losses—ranging from health insurance to pay future medical expenses, to commercial general liability (CGL) to cover future claims and losses incurred by a business.

In Hawaii, insurance is regulated by state law, which requires insurance policies to be legally enforceable contracts. These contracts, or policies, detail the obligations of the insurance company, including the duty to defend the insured against claims or lawsuits and the duty to indemnify, or pay for, covered losses. The Hawaii Insurance Division oversees the insurance industry, ensuring compliance with state statutes and regulations. Insurers must be licensed by the state to offer various types of insurance, such as health insurance for medical expenses or commercial general liability (CGL) insurance for business-related claims and losses. Hawaii's insurance laws are designed to protect policyholders and ensure that insurance companies act in good faith, providing the coverage outlined in their policies. The state also has specific provisions for different types of insurance, and insurers are required to adhere to these regulations to operate within Hawaii.