reglab/housing_qa huggingface dataset:
HI Rev Stat § 431:4-403 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-403 Insuring powers of reciprocals.

  §431:4-403 Insuring powers of reciprocals. (a) Upon complying with the provisions of this part, a reciprocal insurer, as defined in section 431:3-108, may transact any class or classes of insurance defined by this code, other than life or accident and health or sickness insurance.  (b) A reciprocal insurer may purchase reinsurance upon the risk of any subscriber, and may grant reinsurance as to any class of insurance which it is authorized to transact direct. [L 1987, c 347, pt of §2; am L 2003, c 212, §36]
HI Rev Stat § 431:4-404 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-404 Suits.

  §431:4-404 Suits. A reciprocal insurer shall sue and be sued in its own name. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-405 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-405 Attorney

  §431:4-405 Attorney. Attorney as used in this part refers to the attorney-in-fact of a reciprocal insurer. The attorney may be an individual, partnership, or corporation. The principal office of the attorney for a domestic reciprocal insurer shall be maintained within this State. [L 1987, c 347, pt of §2; am L 2003, c 212, §37]
HI Rev Stat § 431:4-406 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-406 Power of attorney.

  §431:4-406 Power of attorney. (a) The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers.  (b) The power of attorney must set forth:  (1) The powers, duties, and compensation of the attorney;  (2) That the attorney is empowered to accept service of process on behalf of the insurer and to authorize the commissioner to receive service of process in actions against the insurer upon contracts exchanged;  (3) Except as to nonassessable policies, a provision for contingent several liability of each subscriber in a specified amount, which amount shall be not less than one nor more than ten times the premium or premium deposit stated in the policy.  (c) The power of attorney may:  (1) Provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder;  (2) Impose such restrictions upon the exercise of the power as are agreed upon by the subscribers;  (3) Provide for the exercise of any right reserved to the subscribers directly or through their advisory committee; and  (4) Contain other lawful provisions deemed advisable.  (d) The terms of any power of attorney, or agreement collateral thereto, shall be reasonable and equitable, and no such power, agreement or any amendment thereof, shall be used or be effective in this State until approved by the commissioner. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-407 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-407 Modifications.

  §431:4-407 Modifications. Modification of the terms of the subscribers' agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers' advisory committee. No modification shall be effective retroactively, nor as to any insurance contract issued prior thereto, nor shall it be effective until approved by the commissioner. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-408 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-408 Organization of reciprocal insurers.

  §431:4-408 Organization of reciprocal insurers. Twenty-five or more persons domiciled in this State, may organize a domestic reciprocal insurer and, in compliance with this part, make application to the commissioner for a certificate of authority to transact insurance. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-409 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-409 Application for authority; declaration required.

  §431:4-409 Application for authority; declaration required. (a) When applying for a certificate of authority, the original subscribers and the proposed attorney shall fulfill the requirements of section 431:3-212, and execute and file with the commissioner a declaration setting forth:  (1) The name of the insurer, in compliance with section 431:3-202(b) and section 431:4-104(d)(1);  (2) The location of the insurer's principal office, which shall be the same as that of the attorney;  (3) The classes of insurance proposed to be transacted;  (4) The names and addresses of the original subscribers;  (5) The designation and appointment of the proposed attorney and a copy of the power of attorney;  (6) The names and addresses of the officers and directors of the attorney if a corporation, or of its members if a partnership;  (7) The powers of the subscribers' advisory committee and the names and terms of office of the members thereof;  (8) That all moneys paid to the reciprocal, after deducting therefrom any sum payable to the attorney, shall be held by the attorney-in-fact in the name of the reciprocal insurer for the purposes specified in the subscribers' agreement;  (9) A copy of the subscribers' agreement;  (10) A statement that each of the original subscribers has in good faith applied for insurance of the class proposed to be transacted, and that the insurer has received from each such subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than twelve months at the rate theretofore filed with and approved by the commissioner;  (11) A statement of the financial condition of the insurer, and a schedule of its assets; and  (12) A copy of each policy, endorsement, and application form it then proposes to issue or use.  (b) Such declaration shall be acknowledged by each subscriber and by the attorney before any officer authorized to take acknowledgements of deeds. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-410 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-410 Policies effective.

  §431:4-410 Policies effective. Any policy applied for by an original subscriber shall become effective concurrently with the issuance of a certificate of authority to the reciprocal insurer. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-411 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-411 Attorney's bond.

  §431:4-411 Attorney's bond. (a) Concurrently with the filing of the declaration provided for in section 431:4-409, the attorney of a domestic reciprocal shall file with the commissioner a bond in favor of this State. The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the commissioner's approval.  (b) The bond shall be in the sum of $25,000 conditioned that the attorney will faithfully account, before a notary public, in a sworn affidavit, for all moneys and other property of the insurer coming into the attorney's hands, and that the attorney will not withdraw or appropriate for the attorney's own use from the funds of the insurer any moneys or property to which the attorney is not entitled under the power of attorney.  (c) The bond shall provide that it is not subject to cancellation unless sixty days' advance notice in writing of intent to cancel is given to both the attorney and the commissioner. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-412 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-412 Deposit in lieu.

  §431:4-412 Deposit in lieu. In lieu of the bond, the attorney may maintain on deposit with the commissioner a like amount in cash or in value of securities qualified under this code as insurers' investments, and subject to the same conditions as the bond. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-413 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-413 Actions on bond.

  §431:4-413 Actions on bond. Action on the attorney's bond or to recover against any such deposit made in lieu thereof may be brought at any time by one or more subscribers suffering loss through a violation of the conditions thereof or by a receiver or liquidator of the insurer. Amounts so recovered shall be deposited in and become part of the insurer's funds. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-414 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-414 Subscribers.

  §431:4-414 Subscribers. Any person may make application for, enter into agreement for and hold policies or contracts in or with, and be a subscriber of a domestic, foreign or alien reciprocal insurer. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-415 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-415 Subscribers' advisory committee.

  §431:4-415 Subscribers' advisory committee. (a) The advisory committee of a domestic reciprocal insurer exercising the subscribers' rights shall be selected under such rules as the subscribers adopt.  (b) Not less than three-fourths of the committee shall be composed of subscribers other than the attorney, or any person employed by, representing, or having a financial interest in the attorney.  (c) The committee shall:  (1) Supervise the finances of the insurer;  (2) Supervise the insurer's operations to such extent as to assure their conformity with the subscribers' agreement and power of attorney;  (3) Procure the audit of the accounts and records of the insurer and of the attorney at the expense of the insurer; and  (4) Have such additional powers and functions as may be conferred by the subscribers' agreement. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-416 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-416 Subscriber's liability.

  §431:4-416 Subscriber's liability. (a) The liability of each subscriber subject to assessment for the obligations of the reciprocal insurer shall not be joint, but shall be individual and several.  (b) Each subscriber who is subject to assessment shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agreement, for payment of actual losses and expenses incurred while the subscriber's policy was in force. The contingent liability may be at the rate of not less than one nor more than ten times the premium or premium deposit stated in the policy, and the maximum aggregate thereof shall be computed in the manner set forth in section 431:4-418.  (c) Each assessable policy issued by the insurer shall plainly set forth a statement of contingent liability. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-417 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-417 Subscriber's liability on judgments.

  §431:4-417 Subscriber's liability on judgments. (a) No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for thirty days.  (b) Any such judgment, or any judgment against the insurer based upon legal process served in compliance with section 431:2-206, shall be binding upon each of the insurer's subscribers only in such proportion as the subscriber's interests may appear and in an amount not exceeding the subscriber's contingent liabilities. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-418 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-418 Aggregate liability.

  §431:4-418 Aggregate liability. No one policy or subscriber as to such policy shall be assessed or be charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one calendar year, in excess of the number of times the premium as stated in the policy, computed solely upon premium earned on such policy during that year. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-419 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-419 Assessment.

  §431:4-419 Assessment. (a) Assessment may be levied from time to time upon the subscribers of a domestic reciprocal insurer, other than as to nonassessable policies, by the attorney upon approval in advance by the subscribers' advisory committee and the commissioner, or by the commissioner in liquidation of the insurer.  (b) Each subscriber's share of a deficiency for which an assessment is made, not exceeding in any event the subscriber's aggregate contingent liability as computed in accordance with section 431:4-418, shall be computed by applying to the premium earned on the subscriber's policy or policies during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned during the period upon all policies subject to assessment.  (c) In computing the earned premiums for the purposes of this section, the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy.  (d) No subscriber shall have an offset against any assessment for which the subscriber is liable on account of any claim for unearned premium or losses payable. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-420 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-420 Time limit for assessment.

  §431:4-420 Time limit for assessment. Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay the subscriber's share of any assessment, as computed and limited in accordance with this part if:  (1) While the subscriber's policy is in force or within one year after its termination, the subscriber is notified by either the attorney or the commissioner of the attorney's or the commissioner's intentions to levy such assessment, or  (2) If an action to have a receiver, conservator, rehabilitator, or liquidator of the insurer appointed is commenced pursuant to article 15 while the subscriber's policy is in force or within one year after its termination. [L 1987, c 347, pt of §2] Revision Note  Subsection designation deleted pursuant to §23G-15.
HI Rev Stat § 431:4-421 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-421 Nonassessable policies.

  §431:4-421 Nonassessable policies. (a) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum paid-up capital stock and surplus required of a domestic stock insurer authorized to transact like classes of insurance, upon application of the attorney and as approved by the subscribers' advisory committee, the commissioner shall issue the commissioner's certificate authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this State, and to omit provisions imposing contingent liability of subscribers under its policies then in force in this State, and to omit provisions imposing contingent liability in all policies delivered or issued for delivery in this State for so long as the surplus remains unimpaired.  (b) Upon impairment of the surplus, the commissioner shall forthwith revoke the certificate. No policy shall thereafter be issued or renewed without providing for the contingent assessment liability of subscribers.  (c) The commissioner shall not authorize a domestic reciprocal insurer to extinguish the contingent liability of any of its subscribers or in any of its policies to be issued, unless it qualifies to and does extinguish the liability of all its subscribers and in all such policies for all classes of insurance transacted by it. Except, if required by the laws of another state in which the insurer is transacting insurance as an authorized insurer, the insurer may issue policies providing for the contingent liability of such of its subscribers as may acquire such policies in the state, and need not extinguish the contingent liability applicable to policies theretofore in force in the state. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-422 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-422 Contributions of surplus.

  §431:4-422 Contributions of surplus. The attorney or other parties may advance to the reciprocal insurer funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer, and shall not be withdrawn or repaid except out of the insurer's realized earned surplus in excess of its minimum required surplus. No such withdrawal or repayment shall be made without the advance approval of the commissioner. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-423 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-423 Share in savings.

  §431:4-423 Share in savings. A reciprocal insurer may from time to time return to its subscribers any savings or credits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of risks, or policies, or between subscribers, but the distribution may vary as to classes of subscribers, based upon the experience of the subscribers. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-424 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-424 Subscriber's share of assets.

  §431:4-424 Subscriber's share of assets. Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions to its surplus made as provided in section 431:4-422, and the return of any unused deposits, savings, or credits, shall be distributed to its subscribers who were such within the twelve months prior to such formula as may have been approved by the commissioner. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-425 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-425 REPEALED.

  §431:4-425 REPEALED. L 1989, c 195, §42.
HI Rev Stat § 431:4-501 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-501 Reorganization, merger or consolidation.

  §431:4-501 Reorganization, merger or consolidation. (a) A domestic insurer may reorganize, merge or consolidate with another insurer subject to the provisions of this part, and subject to the following conditions:  (1) The plan of reorganization, merger, or consolidation shall be submitted to and be approved by the commissioner in advance of the reorganization, merger, or consolidation.  (2) The commissioner shall not approve any such plan unless the commissioner finds that it is fair, equitable, and consistent with law. If the commissioner fails to approve the plan, the commissioner shall state the commissioner's reasons for such failure in the commissioner's decision.  (3) No director, officer, member, or subscriber of any such insurer, except as is expressly provided by the plan of reorganization, merger, or consolidation, shall receive any fee, commission, other compensation or valuable consideration whatsoever, for in any manner aiding, promoting, or assisting in the reorganization, merger, or consolidation.  (4) Any reorganization, merger, or consolidation as to an incorporated domestic insurer shall in other respects be governed by the general laws of this State relating to business corporations. Except, that as to domestic mutual insurers, approval by two-thirds of its members who vote thereon pursuant to the notice and procedure as was approved by the commissioner shall constitute approval of the reorganization, merger, or consolidation as respects the insurer's members.  (b) Reinsurance of all or substantially all of the insurance in force of a domestic insurer by another insurer shall be deemed a consolidation for the purposes of this part. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-502 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-502 Mutualization of stock insurers.

  §431:4-502 Mutualization of stock insurers. (a) Any domestic stock insurer may become a domestic mutual insurer pursuant to such plan and procedure as are approved by the commissioner in advance of such mutualization.  (b) The commissioner shall not approve any such plan, procedure, or mutualization unless:  (1) It is equitable to both shareholders and policyholders.  (2) It is approved by vote of the holders of not less than three-fourths of the insurer's capital stock having voting rights, and by vote of not less than two-thirds of the insurer's policyholders who vote on such plan, pursuant to such notice and procedure as may be approved by the commissioner; provided that in the case of a life insurer, the right to vote thereon is limited to those policyholders whose policies have face amounts of not less than $1,000 and have been in force one year or more. Such vote may be registered in person, by proxy, or by mail.  (3) Mutualization will result in retirement of shares of the insurer's capital stock at a price not in excess of the fair value thereof as determined by competent disinterested appraisers.  (4) The plan provides for appraisal and purchase of the shares of any nonconsenting stockholder in accordance with the laws of this State relating to the sale or exchange of all the assets of a private corporation.  (5) The plan provides for definite conditions to be fulfilled by a designated early date upon which such mutualization will be deemed effective.  (6) Mutualization leaves the insurer with surplus funds reasonably adequate to preserve the security of its policyholders and its ability to continue successfully in business in the states in which it is then authorized, and in the classes of insurance it is then authorized to transact. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:4-503 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-503 Conversion or reinsurance of mutual insurer.

  §431:4-503 Conversion or reinsurance of mutual insurer. (a) No domestic mutual insurer shall be converted, changed, or reorganized as a stock corporation.  (b) Such an insurer may be wholly reinsured in, its assets transferred to, and its liabilities assumed by another mutual or stock insurer under such terms and conditions as are approved by the commissioner in advance of such reinsurance.  (c) The commissioner shall not approve any such reinsurance agreement which does not determine the amount of and make adequate provision for paying to policyholders of the mutual insurer, reasonable compensation for their equities as owners of the insurer, such compensation to be apportioned to policyholders as identified and in the manner prescribed in section 431:4-326. [L 1987, c 347, pt of §2]