reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-212 Arbitrage transactions not affected.

§431:4-212 Arbitrage transactions not affected.
Section 431:4-208 to section 431:4-210 shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the commissioner may adopt in order to carry out the purposes of section 431:4-208 to section 431:4-214. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-213 Exempt equity securities.

§431:4-213 Exempt equity securities.
Section 431:4-208 to section 431:4-210 shall not apply to equity securities of a domestic stock insurance company if:
(1) The equity securities of the company have been registered with the United States Securities and Exchange Commission under section 12 of the Securities Exchange Act of 1934, as amended;
(2) The equity securities of the company are required to be registered with the United States Securities and Exchange Commission under section 12 of the Securities Exchange Act of 1934, as amended; or
(3) The domestic stock insurance company does not have any class of its equity securities held of record by at least one hundred persons on the last business day of the year next preceding the year in which equity securities of the company would be subject to sections 431:4-208 to 431:4-210 but for this paragraph. [L 1987, c 347, pt of §2; am L 2019, c 111, §17]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-214 Rules and regulations.

§431:4-214 Rules and regulations.
The commissioner may make such rules and regulations as may be necessary for the execution of the functions vested in the commissioner by section 431:4-208 to section 431:4-214, and may for such purpose classify domestic stock insurance companies, securities, and other persons or matters within the commissioner's jurisdiction. No provision of section 431:4-208 to section 431:4-210 imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule or regulation of the commissioner, notwithstanding that such rule or regulation may, after such act or omission, be amended or rescinded or determined by judicial or other authority to be invalid for any reason. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-231 Applicability.

§431:4-231 Applicability.
This part is applicable to all domestic stock insurers having one hundred or more stockholders; provided that this part shall not apply to any insurer if ninety-five per cent or more of its stock is owned or controlled by a parent or an affiliated insurer and the remaining shares are held by less than five hundred stockholders. A domestic stock insurer that files with the Securities and Exchange Commission forms of proxies, consents, and authorizations complying with the requirements of the Securities Exchange Act of 1934 (Title 15 United States Code section 78a), the Securities and Exchange Acts Amendments of 1964 (P.L. 88-467), and Regulation X-14 of the Securities and Exchange Commission adopted thereunder shall be exempt from this part. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-232 Schedule A: information required in a proxy statement.

§431:4-232 Schedule A: information required in a proxy statement.
(a) When applicable, information in schedule A shall include, among other things:
(1) Whether or not the person giving the proxy has the power to revoke it;
(2) A brief outline of the rights of appraisal of dissenting stockholders;
(3) A statement as to who is making the solicitation;
(4) A description of the interest of persons in the matters to be acted upon;
(5) A statement as to the class of voting stock to be voted at the meeting, the number of shares outstanding, and the number of votes to which each class is entitled;
(6) Detailed information on nominees for directors;
(7) A statement on remuneration and other transactions with management and others;
(8) Information on the insurer's bonus, profit sharing, and other remuneration plans;
(9) Information on the insurer's pension or retirement plan;
(10) Information on the options, warrants, or rights to purchase stock of the insurer;
(11) Information of the title, amount, and description of stock to be authorized or issued;
(12) Detailed information on mergers, consolidations, acquisitions, and other similar matters; and
(13) Detailed information on any asset, capital, or surplus of the insurer.
(b) If action is to be taken with respect to any matter which is not required to be submitted to a vote of stockholders, the schedule shall state the nature of the matter, the reason for the matter being submitted to a vote of the stockholders, and the action intended to be taken by the management in the event of a negative vote on the matter by the stockholders.
(c) If action is to be taken with respect to any amendment of the insurer's charter, bylaws, or other such documents as to which information is not required, the schedule shall briefly state the reasons for and the general effect of the amendment and the vote needed for its approval. [L 2000, c 24, pt of §2; am L 2003, c 212, §34]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-233 Schedule B: information to be included in statements filed by or on behalf of a participant other than an insurer in a proxy solicitation in an election contest.

§431:4-233 Schedule B: information to be included in statements filed by or on behalf of a participant other than an insurer in a proxy solicitation in an election contest.
Information in schedule B shall include, among other things:
(1) The name and address of the insurer;
(2) Detailed information about the participant;
(3) The participant's interest in the stock of the insurer;
(4) A description of the time and circumstances in which the participant became involved with the solicitation and the nature and extent of the activities or proposed activities of the participant; and
(5) The date and signature of the participant. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-234 Proxies, consents, and authorizations.

§431:4-234 Proxies, consents, and authorizations.
No domestic stock insurer, or any director, officer, or employee of the insurer, or any other person, shall solicit, or permit the use of the person's name to solicit, by mail or otherwise, any proxy, consent, or authorization with respect to any stock of the insurer in contravention of this part or schedule A in section 431:4-232 and schedule B in [section] 431:4-233. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-235 Schedules and exhibits.

§431:4-235 Schedules and exhibits.
Reporting of the information required in schedule A under section 431:4-232 and in schedule B under section 431:4-233, and the exhibit entitled "stockholders information supplement-financial reporting to stockholder" shall be made on forms or in a format approved by the commissioner. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-236 Disclosure of equivalent information.

§431:4-236 Disclosure of equivalent information.
Unless proxies, consents, or authorizations with respect to a stock of a domestic insurer, subject to section 431:4-231, are solicited by or on behalf of the management of the insurer from the holders of record of stock of the insurer in accordance with this part and the schedules thereunder prior to any annual or other meeting, the insurer shall file with the insurance commissioner and transmit to all stockholders of record information substantially equivalent to the information that would be required to be transmitted if a solicitation were made. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-237 Definitions.

§431:4-237 Definitions.
As used in this part:
"Participant" or "participant in a solicitation" includes:
(1) The insurer;
(2) Any director of the insurer and any proxy for a nominee for whom an election as a director is solicited; or
(3) Any other person acting alone or with one or more other persons, committees, or groups in organizing, directing, or financing the solicitation.
"Participant" or "participant in a solicitation" does not include:
(1) A bank, broker, or dealer who, in the ordinary course of business, lends money or executes orders for the purchase or sale of stock and who is not otherwise a participant;
(2) Any person or organization retained or employed by a participant to solicit stockholders or any person who merely transmits proxy soliciting material or performs ministerial or clerical duties;
(3) Any person employed in the capacity of attorney, accountant, or advertising, public relations, or financial advisor, and whose activities are limited to the performance of the person's duties in the course of the employment of the insurer or any of its subsidiaries or affiliates who is not otherwise a participant;
(4) Any person regularly employed as an officer or employee of the insurer or any of its subsidiaries or affiliates who is not otherwise a participant; or
(5) Any officer, director, or person regularly employed by any other participant, if the officer, director, or employee is not otherwise a participant.
"Solicit" or "solicitation" includes:
(1) Any request for a proxy, whether or not accompanied by or included in a form of proxy;
(2) Any request to execute or not to execute, or to revoke a proxy; or
(3) The furnishing of a proxy or other communication to stockholders under circumstances reasonably calculated to result in the procurement, withholding, or revocation of a proxy.
"Solicit" or "solicitation" does not include:
(1) Any solicitation by a person in respect to stock of which the person is the beneficial owner;
(2) Action by a broker or other person in respect to stock carried in the person's name;
(3) Action in the name of the nominee in forwarding to the beneficial owner of the stock soliciting material received from the company;
(4) Impartially instructing the beneficial owner to forward a proxy to the person, if any, to whom the beneficial owner desires to give a proxy;
(5) Impartially requesting instructions from the beneficial owner with respect to the authority to be conferred by the proxy and stating that a proxy will be given if the instructions are received by a certain date; or
(6) The furnishing of a form of proxy to a stockholder upon the unsolicited request of the stockholder, or the performance by any person of ministerial acts on behalf of a person soliciting a proxy. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-238 Information to be furnished to stockholders.

§431:4-238 Information to be furnished to stockholders.
(a) No solicitation shall be made unless the person solicited is concurrently furnished or has previously been furnished with a written proxy statement containing the information required under schedule A pursuant to section 431:4-232.
(b) If the solicitation is made on behalf of the management of the insurer and relates to an annual meeting of stockholders at which directors are to be elected, each proxy statement furnished pursuant to subsection (a) shall be accompanied or preceded by an annual report (in preliminary or final form) to the stockholders containing the financial statements for the last fiscal year as are included in the exhibit entitled "stockholders information supplement-financial reporting to stockholder". Subject to these requirements with respect to financial statements, the annual report to stockholders may be in any form deemed suitable by the management.
(c) Two copies of each annual report sent to the stockholders pursuant to this part shall be mailed to the commissioner not later than the date on which the annual report is first sent or given to stockholders or the date on which preliminary copies of solicitation are filed with the commissioner, pursuant to section 431:4-240(a), whichever date is later. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-239 Requirements as to proxy.

§431:4-239 Requirements as to proxy.
(a) The form of proxy shall:
(1) Indicate in boldface type whether or not the proxy is solicited on behalf of the management;
(2) Provide a specifically designated blank space for dating the proxy; and
(3) Identify clearly and impartially each matter or group of related matters intended to be acted upon, whether proposed by the management or stockholders. No reference need be made to proposals for which discretionary authority is conferred pursuant to subsection (c).
(b) The proxy shall provide a means by which the person solicited may specify by ballot a choice between approval or disapproval of each matter or group of related matters referred to therein, other than elections to office. A proxy may confer discretionary authority with respect to matters for which no choice is specified if the form of proxy states in boldface type how it is intended to vote the shares or authorization represented by the proxy in each case.
(c) A proxy may confer discretionary authority with respect to other matters which may come before the meeting; provided the persons on whose behalf the solicitation is made are not aware a reasonable time prior to the time the solicitation is made that any other matters are to be presented for action at the meeting and provided that a specific statement to that effect is made in the proxy statement or in the form of a proxy.
(d) No proxy shall confer authority to:
(1) Vote for the election of any person to office for which a bona fide nominee is not named in the proxy statement; or
(2) Vote at any annual meeting other than the next annual meeting (or any adjournment thereof) to be held after the date on which the proxy statement and form of proxy are first sent or given to stockholders.
(e) The proxy statement or form of proxy shall provide, subject to reasonable specified conditions, that the proxy will be voted and that where the person solicited specifies, by means of a ballot provided pursuant to subsection (b), a choice with respect to any matter to be acted upon, the vote will be in accordance with the specification so made.
(f) The information included in the proxy statement shall be clearly presented and the statement made shall be divided into groups according to subject matter, with appropriate headings. All printed proxy statements shall be clearly and legibly presented. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-240 Material required to be filed.

§431:4-240 Material required to be filed.
(a) Two preliminary copies of the proxy statement and form of proxy and any other soliciting material to be furnished to stockholders concurrently therewith shall be filed with the commissioner at least ten days prior to the date final form copies of the material are first sent or given to stockholders, or a shorter period prior to that date as the insurance commissioner may authorize upon a showing of good cause.
(b) Two preliminary copies of any additional soliciting material relating to the same meeting or subject matter to be furnished to stockholders subsequent to the proxy statements shall be filed with the commissioner at least two days (exclusive of Saturdays, Sundays, or legal state holidays) prior to the date copies of this material are first sent or given to stockholders or a shorter period prior to that date as the commissioner may authorize upon a showing of good cause.
(c) Two definitive copies of the proxy statement, final form of proxy, and all other soliciting material, in the form in which the material is furnished to stockholders, shall be filed with, or mailed for filing to, the commissioner not later than the date the material is first sent or given to the stockholders.
(d) Where any proxy statement, form of proxy, or other material filed pursuant to this chapter is amended or revised, two of the copies shall be marked to clearly show the changes.
(e) Copies of replies to inquiries from stockholders requesting further information and copies of communications that only request that forms of proxy theretofore solicited be signed and returned need not be filed pursuant to this part.
(f) Notwithstanding subsections (a) and (b), and section 431:4-245, copies of soliciting material in the form of speeches, press releases, and radio or television scripts may be filed with the commissioner prior to use or publication. Final form copies, however, shall be filed with or mailed for filing to the commissioner as required by subsection (c) not later than the date the material is used or published. Subsections (a) and (b) and section 431:4-245 shall apply to any reprints or reproductions of all or any part of the material. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-241 False or misleading statements.

§431:4-241 False or misleading statements.
No solicitation subject to this part shall be made by means of any proxy statement, form of proxy, notice of meeting, or other communication, written or oral, containing any statement which at the time and in the light of the circumstances under which it is made, is false or misleading with respect to any material fact, or which omits any material fact necessary in order to make the statements not false or misleading or necessary to correct any statement in any earlier communication with respect to the solicitation of a proxy for the same meeting or subject matter which has become false or misleading. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-242 Prohibition of certain solicitations.

§431:4-242 Prohibition of certain solicitations.
No person making a solicitation shall solicit any undated or postdated proxy or any proxy which provides that it shall be deemed to be dated as of any date subsequent to the date on which it is signed by the stockholder. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-243 Election contests; applicability.

§431:4-243 Election contests; applicability.
This part shall apply to any solicitation by any person or group for the purpose of opposing a solicitation by any person or group with respect to the election or removal of directors at any annual or special meeting of stockholders. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-244 Filing of information required by schedule B.

§431:4-244 Filing of information required by schedule B.
(a) No solicitation shall be made by any person, other than the management of an insurer unless at least five business days prior thereto or a shorter period as the commissioner may authorize upon a showing of good cause, there has been filed, with the commissioner, by or on behalf of each participant in the solicitation, a statement in duplicate containing the information specified in schedule B pursuant to section 431:4-233 and a copy of any material proposed to be distributed to stockholders in furtherance of the solicitation. Where preliminary copies of any materials are filed, distribution to stockholders shall be deferred until the commissioner's comments have been received and complied with.
(b) Within five business days after a solicitation is made by the management of an insurer, or a longer period as the commissioner may authorize upon a showing of good cause, there shall be filed with the commissioner by or on behalf of each participant in the solicitation, other than the insurer and by or on behalf of each management nominee or director, a statement in duplicate containing the information specified by schedule B under section 431:4-233.
(c) If any solicitation on behalf of the management or any other person has been made, or if proxy material is ready for distribution, prior to a solicitation in opposition thereto, a statement in duplicate containing the information specified in schedule B shall be filed with the commissioner, by or on behalf of each participant in the prior solicitation, other than the insurer, as soon as reasonably practicable after the commencement of the solicitation in opposition thereto.
(d) If, subsequent to the filing of the statements required by subsections (a), (b), and (c), additional persons become participants in a solicitation, there shall be filed with the commissioner, by or on behalf of each person, a statement in duplicate containing the information specified in schedule B under section 431:4-233, within three business days after the person becomes a participant, or longer period as the commissioner may authorize upon a showing of good cause.
(e) If any material change occurs in the facts reported in any statement filed by or on behalf of any participant, an appropriate amendment to the statement shall be filed within three business days by or on behalf of each respective participant with the commissioner.
(f) Each statement and amendment thereto filed pursuant to this section shall be part of the public files of the commissioner. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-245 Solicitations prior to furnishing required written proxy statement.

§431:4-245 Solicitations prior to furnishing required written proxy statement.
Notwithstanding section 431:4-238(a), a solicitation subject to this part may be made prior to furnishing stockholders a written proxy statement containing the information specified in schedule A under section 431:4-232 with respect to the solicitation, provided that:
(1) The statements required by section 431:4-244 are filed by or on behalf of each participant in the solicitation;
(2) No form of proxy is furnished to stockholders prior to the time the proxy statement required by section 431:4-238(a) is furnished to such persons. This paragraph shall not apply where a proxy statement then meeting the requirements of schedule A under section 431:4-232 has been furnished to stockholders;
(3) At the minimum, the information specified in paragraphs (2) and (3) of the statements required by schedule B under section 431:4-233 to be filed by each participant, or an appropriate summary thereof, is included in each communication sent or given to stockholders in connection with the solicitation; and
(4) A written proxy statement containing the information specified in schedule A pursuant to section 431:4-232 with respect to a solicitation is sent or given to stockholders at the earliest practicable date. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-246 Solicitation prior to furnishing required written proxy statement; filing requirements.

§431:4-246 Solicitation prior to furnishing required written proxy statement; filing requirements.
Two copies of any soliciting material proposed to be sent or given to stockholders prior to the furnishing of the written proxy statement required by section 431:4-238(a) shall be filed with the commissioner in preliminary form at least five business days prior to the date final form copies of the material are first sent or given to the stockholders, or a shorter period as the commissioner may authorize upon a showing of good cause therefor. [L 2000, c 24, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-247 Application of this part to annual report.

§431:4-247 Application of this part to annual report.
Notwithstanding section 431:4-238(b) and (c), two copies of any portion of the annual report referred to in section 431:4-238(b), which comments upon or refers to any solicitation subject to this part or to any participant in any solicitation, other than the solicitation by the management, shall be filed with the commissioner as proxy material subject to this part. The portion of the annual report shall be filed with the commissioner in preliminary form at least five business days prior to the date copies of the annual report are first sent or given to stockholders. [L 2000, c 24, pt of §2; am L 2004, c 122, §16]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-302 Initial qualifications for mutual insurers.

§431:4-302 Initial qualifications for mutual insurers.
(a) The commissioner shall not issue a certificate of authority to a domestic mutual insurer unless:
(1) It has fully qualified under this code; and
(2) It has met the minimum requirements for the classes of insurance it proposes to transact as provided in this code.
(b) All applications for insurance submitted by such an insurer as fulfilling qualification requirements shall be bona fide applications from persons resident in this State covering life, property, or risks resident or located in this State.
(c) All qualifying premiums collected and initial surplus funds of such an insurer shall be in cash. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-303 Mutual property insurer.

§431:4-303 Mutual property insurer.
(a) When applying for a certificate of authority a domestic mutual property insurer must:
(1) Have applications from at least one hundred persons for insurance covering at least two hundred and fifty nonadjacent properties, for insurance aggregating not less than $500,000; and
(2) Have collected from each applicant the proper premium at a rate not less than a rate adopted by a licensed rating organization for a term of at least one year; and
(3) Have a surplus over all liabilities, as at completion of issuance of the insurance contracts so applied for, amounting to not less than $750,000.
(b) The maximum of any single risk proposed to be assumed by the insurer shall not exceed ten per cent of its surplus. Any reinsurance taking effect simultaneously with the policy shall be deducted in determining the amount at risk for purposes of this provision.
(c) In lieu of the applications, premiums, and surplus, it is required to have a surplus amounting to not less than $1,250,000 over all liabilities. [L 1987, c 347, pt of §2 as superseded by c 348, §5]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-304 Mutual casualty insurer.

§431:4-304 Mutual casualty insurer.
(a) When applying for a certificate of authority a domestic mutual insurer proposing to transact casualty insurance, including vehicle insurance, must:
(1) Have applications for the insurance in a reasonable amount from at least two hundred and fifty persons covering not less than five hundred separate risks; and
(2) Have collected from each applicant the proper premium for a term of not less than one year at a rate filed with and approved by the commissioner; and
(3) Have a surplus over all liabilities, as at completion of issuance of the insurance contracts so applied for, amounting to not less than $1,500,000.
(b) In lieu of the applications, premiums, and surplus, it is required to have a surplus amounting to not less than $2,250,000 over all liabilities. [L 1987, c 347, pt of §2 as superseded by c 348, §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-305 Mutual vehicle insurer.

§431:4-305 Mutual vehicle insurer.
(a) When applying for a certificate of authority, a domestic mutual insurer formed to transact vehicle insurance must:
(1) Have applications from at least two hundred persons for insurance covering at least five hundred separate vehicles, for a maximum of retained liability not in excess of $50,000 for any one accident or other liability; and
(2) Have collected from each applicant the proper premium for insurance for one year according to its schedule of premium rates approved by the commissioner; and
(3) Have a surplus over all liabilities, as at completion of issuance of the insurance contracts so applied for, amounting to not less than $1,000,000.
(b) In lieu of the applications, premiums, and surplus, it is required to have a surplus amounting to not less than $1,500,000 over all liabilities. [L 1987, c 347, pt of §2 as superseded by c 348, §7]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-306 Mutual life insurer.

§431:4-306 Mutual life insurer.
(a) When applying for a certificate of authority, a domestic mutual life insurer must:
(1) Have at least five hundred applications for life insurance, other than on the term plan for terms of ten years or less, covering at least five hundred separate insurable lives on an individual basis for a maximum insurance of not less than $5,000,000; and
(2) Have collected from each applicant the proper annual premium for one year, and have so received from all applicants premiums aggregating at least $125,000; and
(3) Have surplus over all liabilities, as at completion of issuance of the insurance contracts so applied for, amounting to not less than $600,000.
(b) In lieu of the applications, premiums, and surplus, it is required to have a surplus amounting to not less than $900,000 over all liabilities. [L 1987, c 347, pt of §2 as superseded by c 348, §8]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-307 Mutual accident and health or sickness insurer.

§431:4-307 Mutual accident and health or sickness insurer.
(a) When applying for a certificate of authority, a domestic mutual accident and health or sickness insurer shall:
(1) Have at least five hundred applications from at least five hundred persons for individual accident and health or sickness insurance providing not more than $1,000 of accidental death benefit and not more than $25 of weekly indemnity for each applicant;
(2) Have collected from each applicant the proper premium for one year, and have so received from all applicants premiums aggregating at least $25,000; and
(3) Have a surplus over all liabilities, as at completion of issuance of the insurance contracts so applied for, amounting to not less than $450,000.
(b) In lieu of the applications, premiums, and surplus, it is required to have a surplus amounting to not less than $675,000 over all liabilities. [L 1987, c 347, pt of §2 as superseded by c 348, §9; am L 2002, c 155, §10]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-308 Membership.

§431:4-308 Membership.
Each holder of one or more insurance contracts issued by a domestic mutual insurer, other than a contract of reinsurance, is a member of the insurer, with the rights and obligations of such membership, and each insurance contract issued shall so stipulate. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-309 Rights of members.

§431:4-309 Rights of members.
(a) A domestic mutual insurer is owned by and shall be operated in the interest of its members.
(b) Each member is entitled to one vote in the election of directors and on matters coming before corporate meetings of members, subject to such reasonable minimum requirements as to duration of membership and amount of insurance held as may be made in the insurer's bylaws. The person named as the policyholder in any group insurance policy issued by the insurer shall be deemed the member, and shall have but one vote regardless of the number of individuals insured by the policy.
(c) With respect to the management, records, and affairs of the insurer, a member shall have the same character of rights and relationship as a stockholder has toward a domestic stock insurer. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-310 Bylaws.

§431:4-310 Bylaws.
(a) A domestic mutual insurer shall adopt bylaws for the conduct of its affairs.
(b) The bylaws, or any modification of the bylaws, shall be filed with the commissioner.
(c) The commissioner shall disapprove any such bylaws, or as so modified, and the commissioner shall communicate such disapproval to the insurer, if the commissioner finds after a hearing thereon, that:
(1) It is not in compliance with the laws of this State, or
(2) It unreasonably interferes with the rights of members or exercise of such rights.
(d) No bylaws or modification, so disapproved shall be effective during the existence of such disapproval. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-311 Notice of annual meeting.

§431:4-311 Notice of annual meeting.
(a) Notice of the time and place of the annual meeting of members of a domestic mutual insurer shall be given by imprinting the notice plainly on the policies issued by the insurer.
(b) Any change of the date or place of the annual meeting shall be made only at an annual meeting of members. Notice of the change may be given:
(1) By imprinting the new date or place on all policies which will be in effect as of the date of such changed meeting; or
(2) Unless the commissioner otherwise orders:
(A) Through policies issued after the date of the annual meeting at which such change was made, and
(B) In or attached to premium notices and renewal certificates issued during the twenty-four months immediately following the meeting. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-312 Members proxies.

§431:4-312 Members proxies.
(a) A member of a domestic mutual insurer may vote in person or by proxy given another member on any matter coming before a corporate meeting of members.
(b) No proxy shall be valid beyond the earlier of the following dates:
(1) The date of expiration set forth in the proxy;
(2) The date of termination of membership; or
(3) Five years from the date of execution of the proxy.
(c) No member's vote upon any proposal to divest the insurer of its business and assets, or the major part thereof, shall be registered or taken except in person or by a proxy newly executed and specific as to the matter to be voted upon. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-313 Directors.

§431:4-313 Directors.
(a) No individual shall be a director of a domestic mutual insurer by reason of the individual's holding public office (i.e. ex officio).
(b) An individual is disqualified from being or acting as a director if such person:
(1) Is adjudged as a bankrupt;
(2) Took the benefit of any insolvency law; or
(3) Made a general assignment for the benefit of creditors. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-314 Limitation on expenses incurred in writing property and casualty

§431:4-314 Limitation on expenses incurred in writing property and casualty
. For any calendar year after its first two full calendar years of operation, no domestic mutual insurer, other than one issuing nonassessable policies, shall incur any costs or expense in the writing or administration of property, accident and health or sickness, and casualty insurances, other than boiler and machinery or elevator, transacted by it which, exclusive of losses paid, loss adjustment expenses, investment expenses, dividends, and taxes exceeds the sum of:
(1) Forty per cent of the net premium income during that year after deducting therefrom net earned reinsurance premiums for the year, plus
(2) All of the reinsurance commissions received on reinsurance ceded by it. [L 1987, c 347, pt of §2; am L 2003, c 212, §35]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-315 Violation of expense limitation.

§431:4-315 Violation of expense limitation.
(a) The officers and directors of an insurer violating section 431:4-314 shall be jointly and severally liable to the insurer for any excess of expenses incurred.
(b) For failure or refusal of the insurer to exercise reasonable diligence in enforcing such liability, the commissioner may:
(1) Prosecute action thereon for the benefit of the insurer; and
(2) Revoke the insurer's certificate of authority. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-316 Actions on officers' salaries.

§431:4-316 Actions on officers' salaries.
No action to recover, or no action on account of, any salary or other compensation due or claimed to be due any officer or director of a domestic mutual insurer, or on any note or agreement relative thereto, shall be brought against the insurer later than twelve months after the date on which the salary or compensation, or any installment thereof, first accrued. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-317 Contingent liability of members.

§431:4-317 Contingent liability of members.
(a) Each member of a domestic mutual insurer, except as otherwise provided in this part, shall have a contingent liability, pro rata and not one for another, for the discharge of its obligations. The contingent liability shall be in such maximum amount as is stated in the insurer's articles of incorporation, but shall be not less than one, nor more than five, additional premiums for the member's policy at the annual premium rate and for a term of one year.
(b) Every policy issued by the insurer shall contain a statement of the contingent liability.
(c) Termination of the policy of any member shall not relieve the member of contingent liability for the member's proportion of the obligations of the insurer which accrued while the policy was in force. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-318 Accrual of liability.

§431:4-318 Accrual of liability.
(a) If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum surplus, if any, required of it by this code as prerequisite for continuance of its certificate of authority, and the deficiency is not cured from other sources, its directors may, if approved by the commissioner, make an assessment only on its members who at any time within the twelve months immediately preceding the date assessment was authorized by its directors held policies providing for contingent liability.
(b) The assessment shall be for such an amount of money as is required in the opinion of the commissioner, to render the insurer fully solvent, and provide a reasonable amount of working capital above the minimum amount of surplus, but the working capital so provided shall not exceed five per cent of the insurer's liabilities as of the date on which the amount of deficiency was determined.
(c) A member's proportionate part of any assessment shall be computed by applying to the premium earned within the twelve-month period on the member's contingently liable policy or policies the ratio of the total assessment to the total premium earned during the period on all contingently liable policies which are subject to the assessment.
(d) No member shall have an offset against any assessment for which the member is liable, on account of any claim for unearned premium or losses payable. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-320 Lien on reserves.

§431:4-320 Lien on reserves.
As to life insurance, any portion of an assessment of contingent liability upon a policyholder which remains unpaid following notice of such assessment, demand for payment, and lapse of a reasonable waiting period as specified in such notice, may, if approved by the commissioner, be secured by placing a lien on the reserves held by the insurer to the credit of the policyholder. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-321 Nonassessable policies.

§431:4-321 Nonassessable policies.
(a) A domestic mutual insurer, after it has established a surplus not less in amount than the minimum capital funds required of a domestic stock insurer to transact like classes of insurance, may extinguish the contingent liability of its members to assessment and omit provisions imposing contingent liability in all policies currently issued.
(b) When the surplus has been so established and the commissioner has so ascertained, the commissioner shall issue to the insurer, at its request, the commissioner's certificate authorizing the extinguishment of the contingent liability of its members and the issuance of policies free therefrom.
(c) While it maintains surplus funds in amount not less than the minimum paid-up capital stock and surplus required of a domestic stock insurer authorized to transact like classes of insurance, a foreign or alien mutual insurer may, if consistent with its charter and the laws of its domicile, issue nonassessable policies covering subjects located, resident, or to be performed in this State. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-322 Applies to all policies.

§431:4-322 Applies to all policies.
The commissioner shall not authorize a domestic mutual insurer so to extinguish the contingent liability of any of its members or in any of its policies to be issued, unless it qualifies to and does extinguish such liability of all its members and in all policies for all classes of insurance transacted by it. Except that, 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 members as may acquire such policies in such state, and need not extinguish the contingent liability applicable to policies theretofore in force in the state. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-323 Revocation of authority.

§431:4-323 Revocation of authority.
(a) The commissioner shall revoke the authority of a domestic mutual insurer to extinguish the contingent liability of its members if:
(1) At any time the insurer's assets are less than the sum of its liabilities and the surplus required for such authority, or
(2) The insurer, by resolution of its directors approved by its members, requests that the authority be revoked.
(b) Upon revocation of such authority for any cause, the insurer shall not thereafter issue any policies without contingent liability, nor renew any policies then in force without written endorsement thereon providing for contingent liability. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-324 Dividends.

§431:4-324 Dividends.
(a) The directors of a domestic mutual insurer may from time to time apportion and pay to its members dividends only out of that part of its surplus which is in excess of its required minimum surplus.
(b) The dividends shall be paid or credited to policyholders according to such reasonable classification of its policies as the directors may in their discretion from time to time establish. No dividend shall be paid which unfairly discriminates between policies within the same classification.
(c) No dividend, otherwise earned, shall be made contingent upon the payment of renewal premium on any policy. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-325 Nonparticipating policies.

§431:4-325 Nonparticipating policies.
(a) If its bylaws so provide, a domestic mutual insurer may issue policies not entitled to participate in the insurer's savings and earnings, provided it is authorized to issue policies without contingent liability to assessment.
(b) Such insurer shall not issue in this State both participating and nonparticipating policies for the same class of risks, unless the right or absence of right to participate is reasonably related to the premium charge or the special character of the risks assumed. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:4-326 Members' share of assets.

§431:4-326 Members' share of assets.
(a) Upon the liquidation of a domestic mutual insurer, its assets remaining after discharge of its indebtedness and policy obligations shall be distributed to its members who were members within the thirty-six months prior to the last termination of its certificate of authority.
(b) The distributive share of each member shall be in the proportion that the aggregate premiums earned by the insurer on the policies of the member during the combined periods of the member's membership, bear to the aggregate of all premiums so earned on the policies of all members. If a life insurer, the insurer shall make a reasonable classification of its life insurance policies so held by the members and a formula, based upon such classification, for determining the equitable distributive share of each such member. The classification and formula shall be subject to the commissioner's approval. [L 1987, c 347, pt of §2]
2023 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]
2023 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]
2023 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]
2023 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]
2023 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]