A conservative think tank ranked Hawaii in the bottom 25 percent of states in a study of the impact of regulatory climates on insurance companies.

The Chicago-based Heartland Institute gave Hawaii a C- grade based on 11 criteria covering everything from the politicization of a state’s insurance industry to the level of competition. The Heartland Institute is known for pursuing a libertarian agenda.

Hawaii, which ranked 38th among the 50 states and the District of Columbia, fell below the median in several categories, including regulatory environment and market concentration for auto and homeowner’s insurance. The state fared better in other measures, including the relative lack of politicization in the insurance industry and the ability of insurance companies to align premiums with geographic considerations, such as building in a flood-prone area.

"We conducted this study for the sake of consumers, elected officials and the insurance industry, in that order," according to the report’s authors. "We hope an objective look at state insurance regulation will encourage states to compete by creating freer insurance environments."

They also said the report was designed to focus on regulatory environments and not regulators per se.

"A grade of F is not an attack on a state’s insurance department, nor is a grade of A an endorsement of the people running the department," the report said.

Utah, Idaho, Arizona and Vermont all earned A grades, while Florida and New York were given F grades.