reglab/housing_qa huggingface dataset:
HI Rev Stat § 431:4-504 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4-504 Merger or conversion of reciprocal insurer.

  §431:4-504 Merger or conversion of reciprocal insurer. (a) A domestic reciprocal insurer, upon affirmative vote of not less than two-thirds of the subscribers who vote upon such merger pursuant to such notice as may be approved by the commissioner and with approval of the commissioner of the terms therefor, may merge with another reciprocal insurer or be converted to a stock or mutual insurer.  (b) Every new reciprocal insurer formed by merger shall assume and succeed to all of the obligations and liabilities of the respective merging reciprocal insurers and shall be held liable to pay and discharge all such debts and liabilities and perform such obligations in the same manner as if they had been incurred or contracted by it, but the subscribers of the predecessor reciprocal insurers shall continue subject to all the liabilities, claims, and demands which shall then exist, or which may thereafter accrue against them, or any of them, by reason of any liabilities and obligations incurred by them, or on their behalf as the subscribers before the date of merger.  (c) Such a stock or mutual insurer shall be subject to the same capital requirements and shall have the same rights as a like domestic insurer transacting like classes of insurance.  (d) The commissioner shall not approve:  (1) Any plan for a merger or conversion which is inequitable to subscribers, or  (2) Any plan for a conversion to a stock insurer which does not give each subscriber preferential right to acquire stock of the proposed insurer proportionate to the subscriber's interest in the reciprocal insurer, as determined in accordance with section 431:4-424, and a reasonable length of time within which to exercise the right. [L 1987, c 347, pt of §2; am L 1989, c 195, §15]
HI Rev Stat § 431:4A-102 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4A-102 Asset or reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer.

  §431:4A-102 Asset or reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer. An asset or reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of section 431:4A-101 shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer. The reduction shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations thereunder, if that security is held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer; or, in the case of a trust, held in a qualified United States financial institution as defined in section 431:4A-103(b). This security may be in the form of:  (1) Cash;  (2) Securities listed by the securities valuation office of the National Association of Insurance Commissioners, including those deemed exempt from filing as defined by the Purposes and Procedures Manual of the securities valuation office, and qualifying as admitted assets;  (3) Clean, irrevocable, and unconditional letters of credit, issued or confirmed by a qualified United States financial institution, as defined in section 431:4A-103, effective no later than December 31 of the year for which the filing is being made, and in the possession of, or in trust for, the ceding insurer on or before the filing date of its annual statement;  (4) Letters of credit meeting applicable standards of issuer acceptability as of the dates of their issuance (or confirmation) shall, notwithstanding the issuing (or confirming) institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until their expiration, extension, renewal, modification, or amendment, whichever first occurs; or  (5) Any other form of security acceptable to the commissioner. [L 1992, c 176, pt of §5; am L 2014, c 234, §2]
HI Rev Stat § 431:4A-103 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4A-103 Qualified United States financial institutions.

  §431:4A-103 Qualified United States financial institutions. (a) For purposes of section 431:4A-102(3), a "qualified United States financial institution" means an institution that:  (1) Is organized or (in the case of a United States office of a foreign banking organization) licensed, under the laws of the United States or any state thereof;  (2) Is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies; and  (3) Has been determined by either the commissioner, or the securities valuation office of the National Association of Insurance Commissioners to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner.  (b) For purposes of those provisions of this article specifying those institutions that are eligible to act as a fiduciary of a trust, "qualified United States financial institution" means an institution that:  (1) Is organized, or (in the case of a United States branch or agency office of a foreign banking organization) licensed, under the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers; and  (2) Is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies. [L 1992, c 176, pt of §5]
HI Rev Stat § 431:4A-104 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4A-104 Rules.

  §431:4A-104 Rules. The commissioner may adopt rules under chapter 91 implementing this article. [L 1992, c 176, pt of §5]
HI Rev Stat § 431:4A-105 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4A-105 REPEALED.

  §431:4A-105 REPEALED. L 2014, c 234, §3.
HI Rev Stat § 431:4F-101 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4F-101 Definitions.

  §431:4F-101 Definitions. As used in this article, unless the context requires otherwise:  "Alien insurer" has the same meaning as set forth in section 431:3-101.  "Trusteed assets" mean the assets in a trust account required by section 431:4F-104.  "Trusteed surplus" means the aggregate value of the insurer's general state deposits and trusteed assets deposited with a trustee in compliance with section 431:4F-105, plus accrued investment income thereon where such interest is collected by the states for trustees, less the aggregate net amount of all of the insurer's reserves and other liabilities in the United States as determined in accordance with section 431:4F-106.  "United States branch" means the business unit through which business is transacted within the United States by an alien insurer and the assets and liabilities of the insurer within the United States pertaining to such business. [L 2004, c 120, pt of §2]
HI Rev Stat § 431:4F-102 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4F-102 Scope.

 §431:4F-102 Scope. This article applies to a United States branch using this State as a state of entry to transact insurance in the United States. The United States branch shall be subject to all state laws applicable to an insurer domiciled in this State, unless otherwise provided. [L 2004, c 120, pt of §2]
HI Rev Stat § 431:4F-103 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4F-103 Authorization of entry.

 §431:4F-103 Authorization of entry. (a) An alien insurer may use this State as a state of entry to transact insurance in the United States through a United States branch by:  (1) Qualifying as an insurer licensed to do business in this State; and  (2) Establishing trust accounts, pursuant to trust agreements approved by the commissioner with a United States financial institution approved by the commissioner, in an amount at least equal to the minimum capital and surplus or authorized control level risk-based capital, whichever is greater, required to be maintained by a domestic insurer licensed for the same kind of insurance.  (b) Before authorizing the entry of a United States branch of any alien insurer through this State, the commissioner shall in addition to the requirements of section 431:4F-105 and any other requirement of this chapter, require the alien insurer to:  (1) Comply with the requirements of section 431:3-212;  (2) Submit an English language translation, as necessary, of any of the documents required in paragraph (1); and  (3) Submit to an examination of the insurer's affairs at its principal office within the United States. [L 2004, c 120, pt of §2; am L 2010, c 116, §1(4)]
HI Rev Stat § 431:4F-104 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4F-104 Maintenance of trust account.

 §431:4F-104 Maintenance of trust account. The trusteed assets, or the assets of the trust account of an alien insurer, as required by section 431:4F-103, shall at all times be in an amount equal to the United States branch's reserves and other liabilities plus the minimum capital and surplus or authorized control level risk-based capital, whichever is greater, required to be maintained by a domestic insurer licensed to do the same kind of insurance. [L 2004, c 120, pt of §2]
HI Rev Stat § 431:4F-107 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4F-107 Additional requirements for United States branch license.

 §431:4F-107 Additional requirements for United States branch license. (a) Before issuing any new or renewal license to any United States branch, the commissioner may require satisfactory proof, either in the alien insurer's charter or by an agreement evidenced by a duly certified resolution of its board of directors, or otherwise as the commissioner may require, that the insurer will not engage in any insurance business in contravention of this section or not authorized by its charter.  (b) The commissioner shall issue a renewal license to any United States branch if satisfied, by such proof as required, that the insurer is not delinquent with respect to any requirement imposed by this chapter and that its continuance in business in this State will not be hazardous or prejudicial to the best interests of the people of this State.  (c) No United States branch shall be licensed to do any kind of insurance business in this State, or any combination of kinds of insurance business, that are not permitted to be done by domestic insurers licensed under this chapter. No United States branch shall be authorized to do an insurance business in this State if it does anywhere within the United States any kind of business other than an insurance business and the business necessarily or properly incidental to the kind or kinds of insurance business that it is authorized to do in this State.  (d) Except as otherwise specifically provided, no United States branch, entering through this State or another state, shall be or continue to be authorized to do an insurance business in this State if it fails to comply substantially with any requirement or limitation of this chapter, applicable to similar domestic insurers hereafter organized, which in the judgment of the commissioner is reasonably necessary to protect the interest of the policyholders.  (e) No United States branch that, outside of this State, does any kind or combination of kinds of insurance business not permitted to be done in this State by similar domestic insurers hereafter organized, shall be or continue to be authorized to do an insurance business in this State, unless in the judgment of the commissioner the doing of that kind or combination of kinds of insurance business will not be prejudicial to the best interests of the people of this State.  (f) No United States branch shall be or continue to be authorized to do an insurance business in this State if it fails to keep full and correct entries of its transactions, which shall at all times be open to the inspection of persons invested by law with the rights of inspection and be maintained in its principal office within this State. [L 2004, c 120, pt of §2]
HI Rev Stat § 431:4F-108 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:4F-108 Authority of commissioner.

 §431:4F-108 Authority of commissioner. Whenever it appears to the commissioner from any annual statement, quarterly statement, trusteed surplus statement, or any other report that a United States branch's trusteed surplus is reduced below minimum capital and surplus or the authorized control level risk-based capital, whichever is greater, required to be maintained by a domestic insurer licensed to transact the same kinds of insurance, the commissioner may proceed against the insurer pursuant to articles 5 and 15 as an insurer whose condition is such that its further transaction of business in the United States will be hazardous to its policyholders, its creditors, or the public in the United States. [L 2004, c 120, pt of §2]
HI Rev Stat § 431:5-101 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:5-101 Impairment of capital.

  §431:5-101 Impairment of capital.  (a)(1) A domestic stock insurer's capital stock shall be deemed to be impaired if its qualified assets at any time are less than its liabilities, including its capital stock as a liability.  (2) If a domestic insurer's capital stock is deemed to be impaired, the commissioner shall at once determine the amount of the deficiency and serve notice upon the insurer to cure the deficiency within ninety days after service of such notice.  (b) The insurer may cure the deficiency by assessment of stockholders, by action of its board of directors, or by other lawful means. The deficiency shall be cured:  (1) By the provision of cash or other assets eligible under this code for the investment of the insurer's funds; or  (2) By reduction of the insurer's capital stock to an amount not below the minimum required by either section 431:3-205, section 431:3-207 or section 431:3-208 for the classes of insurance to be thereafter transacted.  (c) Shares as to which such an assessment, made pursuant to this section, is not paid within sixty days after demand, shall be forfeitable and may be cancelled by vote of the directors and new shares issued to make up the deficiency.  (d) If the deficiency is not cured and proof thereof filed with the commissioner within the ninety-day period, the insurer shall be deemed insolvent and shall be proceeded against as authorized by article 15.  (e) If the deficiency is not cured, the insurer shall not issue or deliver any policy after the expiration of the ninety-day period. Any officer or director who violates or knowingly permits the violation of this provision shall be fined not less than $500 nor more than $10,000 for each violation. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:5-102 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:5-102 Impairment of surplus.

  §431:5-102 Impairment of surplus.  (a)(1) A domestic mutual insurer's surplus shall be deemed to be impaired if its qualified assets are less than its liabilities, plus the amount of any surplus required by this code for the classes of insurance authorized to be transacted.  (2) If a domestic mutual insurer's surplus is deemed to be impaired, the commissioner shall at once ascertain the amount of the deficiency and serve notice upon the insurer to cure the deficiency within ninety days after service of such notice.  (b) The insurer shall cure the deficiency in cash or in assets eligible under this code for the investment of the insurer's funds.  (c) If the deficiency is not cured and proof thereof filed with the commissioner within such ninety-day period, the insurer shall be deemed insolvent and shall be proceeded against as authorized by article 15.  (d) If the deficiency is not cured the insurer shall not issue or deliver any policy after the expiration of such ninety-day period. Any officer or director who violates or knowingly permits the violation of this provision shall be fined not less than $500 nor more than $10,000 for each violation. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:5-103 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:5-103 Impairment of reciprocal's surplus.

  §431:5-103 Impairment of reciprocal's surplus.  (a)(1) A domestic reciprocal insurer's surplus shall be deemed to be impaired if its qualified assets are at any time insufficient to discharge its liabilities other than any liability on account of funds contributed by the attorney or other parties, and insufficient to maintain the surplus required for the classes of insurance it is authorized to transact.  (2) Upon such impairment of a reciprocal insurer's surplus, its attorney shall forthwith levy an assessment upon subscribers made subject to assessment by the terms of their policies for the amount needed to make up the deficiency.  (3) For the purposes of a determination of impairment of a reciprocal under this section, surplus means the required surplus which corresponds to the paid-up capital stock required of a stock insurer for authority to transact a like class or classes of insurance.  (b) The insurer shall be deemed insolvent and shall be proceeded against as authorized by this code if:  (1) The attorney fails to make the assessment within thirty days after the commissioner orders the attorney to do so; or  (2) The deficiency is not fully made up within sixty days after the date the assessment was made.  (c) If liquidation of such an insurer is ordered, an assessment shall be levied upon the subscribers for such an amount, subject to limits as provided by this code, as the commissioner determines to be necessary to discharge all liabilities of the insurer, exclusive of any funds contributed by the attorney, but including the reasonable cost of the liquidation. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:5-202 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:5-202 Assets not allowed.

  §431:5-202 Assets not allowed.  In addition to assets excluded under section 431:5-201, the following shall not be allowed as assets in any determination of the financial condition of an insurer:  (1) Trade names, agency plants, other like intangible assets, and any receivable without adequate documentation;  (2) Positive goodwill from all sources in excess of ten per cent of capital and surplus adjusted to exclude electronic data processing equipment and operating system software and net deferred tax assets;  (3) Prepaid or deferred charges for expenses and commissions paid by the insurer except the unaccrued portion of taxes paid prior to due date, on real property acquired or used pursuant to section 431:6-311;  (4) Advances to officers, employees, agents, and other persons on personal security only;  (5) Stock of the insurer, owned by it, or any equity therein or loans secured thereby, or any proportionate interest in such stock through the ownership by the insurer of an interest in another firm, corporation or business unit;  (6) Furniture, furnishings, fixtures, electronic data software, safes, vehicles, library, stationery, literature, and supplies; except such personal property:  (A) The insurer is permitted to hold pursuant to section 431:6-311(e)(5);  (B) Acquired through enforcement of rights arising from security agreements acquired pursuant to section 431:6-310; or  (C) Reasonably necessary for the maintenance and operation of real estate lawfully acquired and held by the insurer other than real estate used by it for home office, branch office, and similar purposes; and  (7) The amount, if any, by which the aggregate book value of investments, as carried in the ledger assets of the insurer, exceeds the aggregate value thereof as determined under this code. [L 1987, c 347, pt of §2; am L 2004, c 122, §17]
HI Rev Stat § 431:5-203 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:5-203 Liabilities

  §431:5-203 Liabilities. In any determination of the financial condition of an insurer, liabilities to be charged against its assets shall include:  (1) The amount of its capital stock outstanding, if any;  (2) The amount, estimated consistent with this article, necessary to pay all of its unpaid losses and claims incurred on or prior to the date of statement, whether reported or unreported, together with the expense of adjustment or settlement thereof;  (3) With reference to life and accident and health or sickness insurance, and annuity contracts:  (A) The amount of reserves on life insurance policies and annuity contracts in force, valued according to the tables of mortality, rates of interest, and methods adopted pursuant to this article which are applicable thereto;  (B) Reserves for accident and health or sickness benefits, for both active and disabled lives;  (C) Reserves for accidental death benefits; and  (D) Any additional reserves which may be required by the commissioner, consistent with practices adopted or approved by the National Association of Insurance Commissioners, on account of such insurances;  (4) With reference to insurance other than those specified in paragraph (3), the amount of reserves equal to the unearned portions of the gross premiums charged on policies in force, computed in accordance with this article;  (5) Taxes, expenses, and other obligations accrued at the date of the statement; and  (6) Any additional reserve set up by the insurer for a specific liability purpose or required by the commissioner consistent with practices adopted or approved by the National Association of Insurance Commissioners. [L 1987, c 347, pt of §2; am L 2003, c 212, §38]
HI Rev Stat § 431:5-204 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:5-204 Determining financial condition of reciprocal insurers.

  §431:5-204 Determining financial condition of reciprocal insurers. In determining the financial condition of a reciprocal insurer, the commissioner shall apply the following rules:  (1) The commissioner shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis.  (2) The surplus deposits of subscribers shall be allowed as assets, except that any premium deposit delinquent for ninety days shall first be charged against the surplus deposits.  (3) The surplus deposits of subscribers shall not be charged as a liability.  (4) All premium deposits delinquent less than ninety days shall be allowed as assets.  (5) An assessment levied upon subscribers and not collected, shall not be allowed as an asset.  (6) The contingent liability of subscribers shall not be allowed as an asset.  (7) The computation of reserves shall be based upon premium deposits other than membership fees, and without any deduction for the compensation of the attorney. [L 1987, c 347, pt of §2]
HI Rev Stat § 431:5-301 (2021)
2021 Hawaii Revised Statutes|Title 24. Insurance|431. Insurance Code|431:5-301 Unearned premium reserve.

  §431:5-301 Unearned premium reserve. (a) Every insurer shall maintain an unearned premium reserve on all policies in force for:  (1) Insurance against loss or damage to property, except as provided in section 431:5-302;  (2) General casualty insurance;  (3) Accident and health or sickness insurance, except as provided in section 431:5-303 and section 431:5-307; and  (4) Surety insurance.  (b) For purposes of this article, "unearned premium reserve" means the portions of the gross premiums in force, less authorized reinsurance.  (c) All reserves may be computed, at the insurer's option, on a monthly or more frequent, pro rata basis.  (d) After adopting any one of the methods for computing such reserve, an insurer shall not change methods without the commissioner's approval. [L 1987, c 347, pt of §2; am L 1997, c 368, §4; am L 2003, c 212, §39]