reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-107 Reciprocal insurance.

§431:3-107 Reciprocal insurance.
Reciprocal insurance means that insurance resulting from the exchange of insurance contracts among subscribers of an unincorporated association, the interexchange being effectuated through an attorney-in-fact common to all such subscribers, thereby providing insurance coverage on each other. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-108 Reciprocal insurer.

§431:3-108 Reciprocal insurer.
A reciprocal insurer means an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact common to all such persons to provide reciprocal insurance among themselves. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-109 Reinsurance.

§431:3-109 Reinsurance.
Reinsurance means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. In referring to reinsurance transactions, this code sometimes refers to the insurer transferring the risk as the ceding or withdrawing insurer, while the insurer assuming the risk is sometimes termed the assuming reinsurer or the reinsurer. [L 1987, c 347, pt of §2]
Attorney General Opinions
Third party liability coverage provided to the State is insurance, not reinsurance. Att. Gen. Op. 95-2.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-201 Authority required.

§431:3-201 Authority required.
(a) No person shall act as an insurer and no insurer shall transact insurance business in this State other than as authorized by a certificate of authority granted to it by the commissioner; except as to such transactions as are expressly otherwise provided in this code.
(b) The investigation and adjustment of claims in this State arising under insurance contracts issued by an unauthorized insurer, except surplus line insurance issued pursuant to section 431:8-301, shall be deemed to constitute the transaction of insurance in this State, unless the same are isolated or nonrecurring transactions.
(c) Every certificate of authority shall include but not be limited to:
(1) The name of the insurer and the classes of insurance it is authorized to transact in this State; or
(2) The name of and location of the principal office of its attorney-in-fact if a reciprocal insurer. [L 1987, c 347, pt of §2; am L 1993, c 205, §5; am L 2006, c 189, §4]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-202 Insurer's name.

§431:3-202 Insurer's name.
(a) Every insurer shall conduct its business in its own legal name.
(b) No insurer shall assume or use a name deceptively similar to that of any other authorized insurer or a name that tends to deceive or mislead as to the type of organization of the insurer.
(c) An insurer shall apply to the department of commerce and consumer affairs and the commissioner for approval of the use or change of a trade name pursuant to section 431:2-217.
(d) When a foreign or an alien insurer authorized to do business in this State wants to change the name under which its certificate of authority is issued, the insurer shall file a request for name change with the commissioner at least thirty days prior to the effective date of the name change. If within the thirty-day period the commissioner finds the name change request does not meet the requirements of this chapter or of the corporation laws of this State, the commissioner shall send to the insurer written notice of disapproval of the request specifying in what respect the proposed name change fails to meet the requirements of this chapter or the corporation laws of this State and stating that the name change shall not become effective. [L 1987, c 347, pt of §2; am L 1988, c 363, §2(2); am L 2019, c 70, §5]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-203 Qualifications for authority.

§431:3-203 Qualifications for authority.
(a) To qualify for and hold a certificate of authority, an insurer shall:
(1) Be one of the following:
(A) A stock, mutual, or reciprocal insurer of the same general type as may be formed as a domestic insurer under article 4;
(B) A voluntary unincorporated association formed for the purpose of enabling cooperative action to provide accident and health or sickness insurance, as defined under section 431:1-205, in accordance with this chapter or the laws of any other state that authorizes the issuance of accident and health or sickness insurance of the type authorized under this chapter; or
(C) A voluntary association of employers formed in this State or another state that is authorized to issue association health plans under the regulations of the United States Department of Labor;
(2) Have capital funds as required by this code based upon the type and domicile of the insurer and the classes of insurance that the insurer is authorized to transact in its domicile;
(3) Transact or propose to transact in this State insurances that are among those authorized by its charter, and only such insurance as meets the standards and requirements of this code; and
(4) Fully comply with and qualify according to the provisions of this code.
(b) In addition to the requirements in subsection (a), to qualify for and hold a certificate of authority, foreign and alien insurers must have continuously, actively, and successfully transacted the business of insurance for at least five years immediately prior thereto; provided that:
(1) In the case of a reorganization (including a merger, corporate acquisition, or formation of a subsidiary) of a capital stock or mutual insurer, the five-year period shall be computed from the date of the organization of the original or parent insurer or insurers if substantially the same management continues; and
(2) This subsection shall not apply to a voluntary association of employers authorized to issue association health plans under the regulations of the United States Department of Labor. [L 1987, c 347, pt of §2; am L 1997, c 13, §1; am L 2001, c 216, §5; am L 2018, c 199, §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-203.5 Foreign insurer; certification

§431:3-203.5 Foreign insurer; certification
. (a) Notwithstanding section 431:3-203 or any other law to the contrary in this code, the commissioner shall grant a certificate of authority to any applicant, regardless of the number of previous years experience in the business of insurance, that is an insurer licensed under the insurance laws of one of not fewer than three states annually designated, or redesignated, by the commissioner from among the states that are accredited by the National Association of Insurance Commissioners. The loss of accreditation by a state designated by the commissioner shall not in itself affect the validity of a previously issued certificate of authority by the commissioner to a foreign insurer licensed under the insurance laws of the previously accredited state. Nor shall the commissioner's de-selection of a state affect the validity of a previously issued certificate of authority to a foreign insurer licensed by that state.
(b) The commissioner may waive the filing of any document required to be submitted under section 431:3-212.
(c) Nothing in this section shall limit the commissioner's authority to require a foreign insurer to proceed with the certification process under this article if the commissioner, at the commissioner's discretion, determines that it would be in the public interest. [L 1995, c 129, §1; am L 1997, c 36, §1; am L 1998, c 2, §100; am L 2004, c 122, §8]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-204 Classes of insurance authorized

§431:3-204 Classes of insurance authorized
. An insurer which otherwise qualifies therefor may be authorized to transact any one or more classes of insurance as defined in sections 431:1-204 to 431:1-211; provided that:
(1) A life insurer shall not transact any insurance in addition to life insurance except accident and health or sickness insurance; provided that nothing herein shall limit a life insurer existing and authorized on July 1, 1988, from writing any authorized insurance stated in its charter; and
(2) A reciprocal insurer shall not transact life or accident and health or sickness insurance. [L 1987, c 347, pt of §2; am L 2003, c 212, §19]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-205 Funds required of new insurers.

§431:3-205 Funds required of new insurers.
Subject to section 431:3-203(a)(2), to qualify to transact any one class of insurance, an insurer, not existing and authorized in this State on July 1, 1988, shall:
(1) Deposit in a federally insured financial institution within the State, paid-up capital stock in the case of a stock insurer, or unimpaired surplus if:
(A) A reciprocal insurer; or
(B) A mutual insurer that does not seek to qualify upon the basis of applications and premiums collected as provided in sections 431:4-303 to 431:4-307,
in an amount not less than shown in the applicable Schedule "A";
(2) Maintain this deposit at all times while the insurer is licensed and transacting insurance in this State; and
(3) Secure the approval of the commissioner before making withdrawals from the depository.
Schedule "A"
Class of Insurance Amount Required
Life $ 600,000
Accident and Health or Sickness 450,000
Property 750,000
Marine and Transportation 1,000,000
Vehicle 1,000,000
General Casualty 1,500,000
Surety 1,000,000
Title 400,000.
[L 1987, c 347, pt of §2 as superseded by c 348, §2; am L 1989, c 195, §13; am L 2003, c 212, §20; am L 2018, c 18, §24]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-206 Additional funds required, new insurers.

§431:3-206 Additional funds required, new insurers.
In addition to the paid-up capital stock or unimpaired surplus as required under section 431:3-205 and section 431:3-208, the following insurers shall possess when first authorized:
(1) In the case of domestic stock or reciprocal insurers not existing and authorized in this State on July 1, 1988, or domestic mutual insurers not existing and authorized in this State on July 1, 1988, which qualify upon the basis of possession of surplus in lieu of applications and premiums collected as provided in section 431:4-303 to section 431:4-307, bona fide additional surplus equaling in amount not less than fifty per cent of the capital stock or surplus otherwise required for the class or classes of insurance proposed to be transacted; or
(2) In the case of foreign and alien insurers which have been insurers for less than five years except if as a result of a reorganization (including a merger, corporate acquisition, or formation of a subsidiary), bona fide additional surplus in an amount not less than fifty per cent of the capital stock or surplus otherwise required for the class or classes of insurance which the insurer is authorized to transact in its domicile. [L 1987, c 347, pt of §2; am L 1989, c 207, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-207 Noncompliance as to capital stock and surplus permitted certain insurers for five years.

§431:3-207 Noncompliance as to capital stock and surplus permitted certain insurers for five years.
(a) A domestic or foreign insurer holding a valid certificate of authority to transact insurance in this State as of July 1, 1988, for a period of five years after that date, may continue to transact the kinds of insurance permitted by the certificate of authority by complying with this code and by maintaining unimpaired not less than the same amount of paid-in capital stock or surplus, if a mutual or reciprocal insurer, as required under the laws of this State immediately prior to July 1, 1988, and as if the laws had continued in force. After the five-year period, the insurer shall have and maintain not less than the same amount of paid-in capital stock and surplus as is then required of domestic stock insurers newly formed.
(b) An insurer specified in subsection (a) shall not be granted authority to transact any other or additional kinds of insurance after the five-year period specified unless it then fully complies with the capital and surplus requirements applied to all the kinds of insurance it then proposes to transact, as provided under section 431:3-205 as to new domestic insurers. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-208 Funds required of existing and new insurers for transacting additional classes of insurance.

§431:3-208 Funds required of existing and new insurers for transacting additional classes of insurance.
(a) An insurer otherwise qualified may be authorized to transact combinations of classes of insurance while having on deposit in a federally insured financial institution within the State, additional paid-up capital stock in the case of a stock insurer, or additional unimpaired surplus in the case of a mutual or reciprocal insurer, subject to subsection (c) as to domestic mutual or reciprocal insurers, and subject to section 431:3-203(a)(2). An insurer wanting to transact additional classes of insurance must:
(1) Maintain at all times, in a federally insured financial institution within the State, capital if a stock insurer, or surplus, if a mutual or reciprocal insurer, equal to the sum required of each individual class of insurance it desires to transact, as listed in Schedule "A" of section 431:3-205;
(2) Maintain a sum total not to exceed $2,500,000; and
(3) Obtain first the approval by the commissioner for any withdrawals from this deposit.
(b) An insurer while possessing in a federally insured financial institution within the State, $2,500,000 of capital in the case of a stock insurer, or of unimpaired surplus in the case of a reciprocal or mutual insurer, may be authorized to transact all classes of insurance, subject to sections 431:3-204 to 431:3-206.
(c) To qualify for authority to transact a combination of classes of insurance, a domestic mutual or reciprocal insurer shall deposit in a federally insured financial institution within the State, surplus in an amount equal to the paid-up capital stock required of stock insurers for authority to transact a like combination of classes of insurance. [L 1987, c 347, pt of §2 as superseded by c 348, §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-209 Deposits of alien and foreign insurers; special deposits.

§431:3-209 Deposits of alien and foreign insurers; special deposits.
(a) To qualify for and hold a certificate of authority, an alien or foreign insurer must deposit and maintain on deposit assets equal in amount to either the amount of paid-up capital stock in the case of a stock insurer, or surplus, in the case of a mutual or reciprocal insurer, required of a domestic insurer to transact a business of insurance in like class or classes of insurance, or the amount of $500,000, whichever amount is the greater.
(b) The deposit shall be for the security of all policyholders and obligees of the insurer in the United States. It shall not be subject to diminution below the amount currently determined in accordance with subsection (a) so long as the insurer has outstanding any liabilities arising out of its business transacted in the United States.
(c) The deposit shall be maintained with the commissioner. In lieu of the deposit or part thereof, the commissioner shall accept the certificate of the public official having supervision over insurance in another state showing that deposits by the insurer, or like part thereof, maintained by the insurer in that state for the benefit of all of the insurer's policyholders in the United States or all of its policyholders and obligees in the United States, if the total deposit in this State and those evidenced by the certificate or certificates is in an amount not less than the amount required pursuant to subsection (a).
(d) The commissioner may require the foreign or alien insurer to place in a special deposit an amount determined by the commissioner in a federally insured financial institution within the State. [L 1987, c 347, pt of §2 as superseded by c 348, §4]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-210 Determination of capital funds of alien insurer.

§431:3-210 Determination of capital funds of alien insurer.
(a) The capital funds of an alien insurer shall be deemed to be the amount by which its assets exceed its liabilities with respect to its business transacted in the United States.
(b) Assets of such insurer held in any state for the special protection of policyholders and obligees in such state shall not constitute assets of the insurer for the purpose of this code. Liabilities of the insurer so secured by such assets but not exceeding the amount of such assets, may be deducted in computing the insurer's liabilities for the purpose of this section. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-212 Application for authority.

§431:3-212 Application for authority.
To apply for an original certificate of authority, an insurer shall file with the commissioner a Uniform Certificate of Authority Application from the National Association of Insurance Commissioners that shall set forth or be accompanied by all of the following:
(1) The insurer's request showing:
(A) Its name, in compliance with sections 431:3-202(b) and 431:4-104(d)(1), home office location, type of insurer, organization date, state or country of its domicile, and name and location of the principal office of its attorney-in-fact, if a reciprocal insurer;
(B) The classes of insurance it proposes to transact; and
(C) Additional information as the commissioner may reasonably require.
(2) Documents including the following:
(A) A copy of its charter as amended or certified by the proper public officer of the state or country of domicile, if a foreign or alien insurer;
(B) A copy of its bylaws as amended, certified by its proper officer;
(C) A copy of its annual statement as of December 31 last preceding;
(D) An appointment of the commissioner as its attorney to receive service of legal process, if a foreign or alien insurer or a domestic reciprocal insurer;
(E) The name and business address of its authorized resident agent upon whom process may be served in all cases, if a foreign or alien insurer;
(F) A copy of the appointment and authority of its United States manager, certified by its proper officer, if an alien insurer;
(G) A certificate from the proper public official of its state or country of domicile showing that it is duly organized and authorized to transact the classes of insurance proposed to be transacted, if a foreign or alien insurer;
(H) The declaration required by section 431:4-409, if a domestic reciprocal insurer;
(I) A certificate of the proper public official as to any deposit made or held in compliance with this code;
(J) A copy of the report of the last examination made of the insurer certified by the insurance supervisory official of its state of domicile or entry into the United States, if a foreign or alien insurer; and
(K) Other documents or stipulations as the commissioner may reasonably require to evidence compliance with this code.
(3) A deposit with the commissioner of the appropriate fees required by this code. [L 1987, c 347, pt of §2; am L 2002, c 155, §7; am L 2003, c 212, §21; am L 2017, c 152, §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-212.5 Redomestication of authorized insurers.

§431:3-212.5 Redomestication of authorized insurers.
(a) The certificate of authority, producer appointments and licenses, rates, and other items allowed by the commissioner, which are in existence at the time an insurer authorized to transact insurance business in this State transfers its corporate domicile to this or any other state by merger, consolidation, or any other lawful method shall continue in full force and effect upon such transfer if the insurer remains qualified to transact insurance business in this State. For purposes of this section, an insurer transferring its corporate domicile to this State remains qualified to transact insurance business in this State if it meets the organization and licensing requirements applicable to the same type of domestic insurer. All outstanding policies of a transferring insurer shall remain in full force and effect and need not be endorsed as to the new name of the company or its new location unless so ordered by the commissioner.
(b) Each transferring insurer shall file new policy forms on or before the effective date of the transfer, if such forms are required to be approved by the commissioner. The insurer may use existing policy forms with appropriate endorsements if permitted by the commissioner. Every transferring insurer shall notify the commissioner of the details of the proposed transfer and shall file promptly a Uniform Certificate of Authority Application for any resulting amendments to corporate documents filed or required to be filed with the commissioner.
(c) The commissioner may apply this section to any domestication occurring in another state by an authorized United States branch of an alien insurer. [L 1991, c 181, §1; am L 2002, c 155, §8; am L 2004, c 122, §9; am L 2017, c 152, §4]
Cross References
Redomestication--captive insurers, see § §431:19-102.3 and 431:19-102.4.
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-213 Authority issued or denied.

§431:3-213 Authority issued or denied.
(a) If the commissioner finds that an insurer has met the requirements for and is fully entitled thereto under this code, the commissioner shall issue to it a proper certificate of authority.
(b) If the commissioner does not so find, the commissioner shall deny the insurer certificate of authority within a reasonable length of time following filing of the application by the insurer.
(c) The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-214 Extension; amendment.

§431:3-214 Extension; amendment.
(a) No certificate of authority shall contain an expiration date, but all certificates of authority shall be extended by the commissioner from time to time in order to continue to be valid. When the commissioner issues or extends a certificate of authority, the commissioner shall determine the date prior to which the certificate of authority must be extended and shall so notify the insurer in writing. This date is called the extension date. The extension date shall be any date not less than one year and not more than three years after date of issue or extension of the certificate of authority. If the insurer qualifies, its certificate of authority shall be extended. The commissioner shall provide each holder of a certificate of authority at least thirty days' advance written notice of the applicable extension date.
(b) The commissioner shall amend a certificate of authority at any time in accordance with changes in the insurer's charter or insuring powers. [L 1987, c 347, pt of §2; am L 2015, c 63, §4]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-215 Withdrawal from State; obligations.

§431:3-215 Withdrawal from State; obligations.
(a) No insurer other than a life insurer shall withdraw from this State until its direct liability to its policyholders and obligees under all its insurance contracts then in force in this State has been assumed by another authorized insurer under an agreement approved by the commissioner.
(b) The assuming insurer shall, within a reasonable time, replace the assumed insurance contracts with its own, or by endorsement thereon acknowledge its liability under the assumed contracts.
(c) Six months prior to withdrawing from this State, an insurer shall file an affidavit with the commissioner showing that:
(1) It desires to withdraw from this State and to discontinue business in this State; and
(2) All of its outstanding policies have been either reinsured or have expired. If the outstanding policies are reinsured, the withdrawing insurer shall also submit the reinsurer's affidavit stating that it has reinsured all the outstanding policies of the withdrawing insurer upon risks in this State or upon business originating in this State. The reinsurer shall be an insurer authorized to carry on the business of insurance in this State.
(d) The insurer shall return for cancellation its current certificate of authority and licenses for producers issued by the commissioner.
(e) Six months prior to withdrawing from this State, an insurer shall, in addition to other requirements, publish in this State a notice of withdrawal once each week for the first eight successive weeks, and again in the last four successive weeks in the sixth month in a newspaper of daily circulation; provided that the commissioner shall have the discretion to waive the notice requirement. The notice of withdrawal as published shall have the prior approval of the commissioner. [L 1987, c 347, pt of §2; am L 1993, c 199, §1; am L 2002, c 155, §9; am L 2004, c 122, §10]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-216 Mandatory refusal, suspension or revocation provisions.

§431:3-216 Mandatory refusal, suspension or revocation provisions.
The commissioner shall suspend, revoke, or refuse to extend an insurer's certificate of authority in addition to other grounds in this code, if the insurer:
(1) Is a domestic stock insurer and has assets less in amount than its liabilities, including its capital stock less amounts required for the class of insurance or combination of classes of insurance as a liability, and has failed to make good such deficiency as required by the commissioner.
(2) Is a domestic mutual or domestic reciprocal insurer, and fails to make good a deficiency of assets as required by the commissioner.
(3) Is a foreign or alien insurer and no longer qualifies or meets the requirements for the authority.
(4) Knowingly exceeds its charter powers or its certificate of authority. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-217 Discretionary refusal, suspension or revocation provisions.

§431:3-217 Discretionary refusal, suspension or revocation provisions.
After a hearing the commissioner may suspend, revoke, or refuse to extend an insurer's certificate of authority, in addition to other grounds in this code, if the insurer:
(1) Knowingly fails to comply with or, in the case of a reciprocal insurer, if the attorney fails to comply with, or violates any provision of this code other than those for violation of which refusal, suspension or revocation is mandatory;
(2) Knowingly fails to comply with any proper order of the commissioner;
(3) Is found by the commissioner upon examination, or other evidence, to be in unsound condition or in a condition as to render its further proceedings in this State hazardous to the public or to its policyholders in this State;
(4) Refuses to remove or discharge a director or officer who has been convicted of any crime involving fraud or dishonesty;
(5) Commits or performs with a frequency as to indicate a general business practice any act which compels claimants under policies either to accept less than the amount due them or to bring suit against it to secure full payment of the amount due;
(6) Is affiliated with and under the same general management, interlocking directorate, or ownership as another insurer which transacts insurance other than reinsurance in this State without having a certificate of authority therefor, except as is permitted by this code;
(7) Refuses to be examined, or if its directors, officers, employees, or representatives refuse to submit to examination or give testimony concerning its affairs, or to produce its accounts, records, and files for examination by the commissioner when required by this code, or refuses to perform any legal obligation relative to the examination;
(8) Fails to pay any final judgment rendered against it upon any policy, bond, recognizance, or undertaking issued or guaranteed by it, within sixty days after the judgment became final or within sixty days after time for taking an appeal has expired or within sixty days after dismissal of an appeal before final determination, whichever date is the later; or
(9) Fails to file its annual statement when due or within any extension of time which the commissioner may for good cause have granted. [L 1987, c 347, pt of §2 as superseded by c 349, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-218 Procedure upon revocation; suspension of certificate of authority.

§431:3-218 Procedure upon revocation; suspension of certificate of authority.
Upon revoking, suspending, or refusing to extend an insurer's authority to transact insurance, the commissioner shall forthwith:
(1) Give notice thereof to the insurer not fewer than ten days in advance of the effective date of the revocation or suspension;
(2) Likewise revoke or suspend all producers' authority to represent the insurer in this State and give notice thereof to the producers; and
(3) Give notice thereof to the insurance supervisory official of each other state in which the insurer is authorized to transact insurance; provided that notice to the National Association of Insurance Commissioners shall satisfy this requirement. [L 1987, c 347, pt of §2; am L 2001, c 216, §6; am L 2004, c 122, §11]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-219 Suspension period; revocation.

§431:3-219 Suspension period; revocation.
(a) Except as otherwise expressly provided in this code, the commissioner may suspend an insurer's certificate of authority for a period not to exceed one year. The commissioner shall state in the commissioner's order of suspension the period during which it shall be effective.
(b) After the completion of the original suspension period, the commissioner may order additional extensions of the suspension or revoke an insurer's certificate of authority pursuant to section 431:3-218, provided there is a basis for the extended suspension or revocation and the insurer has an opportunity for a hearing prior to the imposition of the extended suspension or revocation. [L 1987, c 347, pt of §2; am L 2005, c 132, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-220 Revival.

§431:3-220 Revival.
An insurer whose certificate of authority has been suspended, revoked, or refused may subsequently be authorized if:
(1) The grounds for the suspension, revocation, or refusal no longer exist and the insurer is otherwise fully qualified; and
(2) The insurer has reimbursed the commissioner for all reasonable and necessary expenses incurred by virtue of the suspension, revocation, or reinstatement of the certificate of authority. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-221 Power to fine.

§431:3-221 Power to fine.
In addition to or in lieu of the suspension, revocation, or refusal to extend any certificate of authority, the commissioner, after hearing, may levy a fine upon the insurer in an amount not less than $500 and not more than $50,000. The order levying the fine shall specify the period within which the fine shall be fully paid, which shall not be less than thirty nor more than forty-five days from the date of the order. Upon failure to pay the fine when due, the commissioner shall revoke the insurer's certificate of authority if not already revoked, and the fine shall be recovered in a civil action brought on behalf of the commissioner by the attorney general. Any fine so collected shall be paid by the commissioner to the director of finance for the account of the compliance resolution fund. [L 1987, c 347, pt of §2; am L 1999, c 163, §15(1); am L 2002, c 39, §10]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-301 Annual and quarterly filings with commissioner.

§431:3-301 Annual and quarterly filings with commissioner.
(a) Each domestic, foreign, and alien insurer that is authorized to transact insurance in this State shall file annually with the commissioner, on or before March 1 of each year, a copy of its annual statement convention blank, statement of actuarial opinion by a qualified actuary or specialist, and additional filings as prescribed by the commissioner for the preceding year. Each insurer shall file quarterly, on or before the forty-fifth day after each quarter, a copy of its quarterly statement. The statements shall be prepared in accordance with the National Association of Insurance Commissioners' annual statement instructions, following the practices and procedures prescribed by the National Association of Insurance Commissioners' accounting practices and procedures manuals. The annual and quarterly statements shall be verified by oaths of at least two of the insurer's principal officers, or the attorney-in-fact in the case of a reciprocal insurer, or the United States manager in the case of an alien insurer. The statement of an alien insurer shall relate only to its transactions and affairs in the United States. Foreign and alien insurers that are in compliance with section 431:3-302 are not required to file annual and quarterly statements with this State.
(b) Each insurer shall file the tax statement provided for by section 431:7-201.
(c) Any insurer failing or refusing to submit the annual or quarterly filing or any of the documents in accordance with this section shall be liable for a fine in an amount not less than $100 and not more than $500 for each day of delinquency. The commissioner may suspend or revoke the certificate of authority of any insurer that fails to file any of the documents required pursuant to this section. [L 1987, c 347, pt of §2; am L 1992, c 176, §9; am L 1993, c 205, §6 as superseded by c 321, §9; am L 1994, c 128, §2; am L 1995, c 232, §11; am L 1997, c 36, §2; am L 2003, c 212, §22]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-302 Annual and quarterly filings with the National Association of Insurance Commissioners.

§431:3-302 Annual and quarterly filings with the National Association of Insurance Commissioners.
(a) Each domestic, foreign, and alien insurer that is authorized to transact insurance in this State shall file annually with the National Association of Insurance Commissioners, on or before March 1 of each year, a copy of its annual statement convention blank, statement of actuarial opinion by a qualified actuary or specialist, and additional filings as prescribed by the commissioner for the preceding year. Each insurer shall file quarterly, on or before the forty-fifth day after each quarter, a copy of its quarterly statement with the National Association of Insurance Commissioners. The information filed with the National Association of Insurance Commissioners shall be in the same format and scope as that required by the commissioner and shall include the signed jurat page and the actuarial certification. Any amendments and addenda to the statement filing subsequently filed with the commissioner shall also be filed with the National Association of Insurance Commissioners. In addition to the printed annual and quarterly filings addressed in this section, the annual and quarterly filings shall also be filed electronically in the format prescribed by the National Association of Insurance Commissioners' annual statement instructions. The annual and quarterly electronic filings shall be due on the same dates as the corresponding printed information.
(b) Any insurer failing or refusing to submit the annual or quarterly filings in accordance with this section shall be liable for a penalty in an amount not less than $100 and not more than $500 for each day of delinquency. [L 1987, c 347, pt of §2; am L 1993, c 205, §7; am L 1994, c 190, § §2, 10; am L 1995, c 61, §2 as superseded by c 232, § §4, 12; am L 1997, c 368, §2; am L 1999, c 302, §9 as superseded by c 128, §2; am L 2003, c 212, §23]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-303 Immunity.

§431:3-303 Immunity.
In the absence of actual malice, members of the National Association of Insurance Commissioners, their duly authorized committees, subcommittees, and task forces, their delegates, National Association of Insurance Commissioners employees, and all others charged with the responsibility of collecting, reviewing, analyzing and disseminating information from the filing of the annual statement convention blanks shall be acting as agents of the commissioner under the authority of this code and will not be subject to civil liability for libel, slander or any other cause of action by virtue of their collection, review, and analysis or dissemination of the data and information from the filings required hereunder. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-304 Confidentiality.

§431:3-304 Confidentiality.
All financial analysis ratios and examination synopses concerning insurance companies that are submitted to the insurance division by the National Association of Insurance Commissioners' Insurance Regulatory Information System are confidential and may not be disclosed by the insurance division. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-305 Accounts; records.

§431:3-305 Accounts; records.
Every insurer shall keep full and adequate accounts and records of its assets, obligations, transactions, and affairs. Every domestic insurer shall maintain said accounts and records at its principal office in this State. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-306 Limit of risk.

§431:3-306 Limit of risk.
(a) No insurer shall retain net any risk on any one subject of insurance, whether located or to be performed in this State or elsewhere, in an amount exceeding ten per cent of its surplus to policyholders.
(b) For the purposes of this section, a subject of insurance as to insurance against fire includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire.
(c) Reinsurance in any reinsurer not qualified under article 4A may not be deducted in determining risk retained for the purposes of this section.
(d) In the case of surety insurance, the net retention shall be computed after deduction of reinsurances, the amount assumed by any co-surety, the value of any security deposited, pledged, or held subject to the consent of the surety and for the protection of the surety.
(e) This section shall not apply to insurance of marine risks or marine protection and indemnity risks. [L 1987, c 347, pt of §2; am L 1993, c 321, §10; am L 2004, c 122, §13]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-306.5 Residential hurricane coverage.

§431:3-306.5 Residential hurricane coverage.
(a) Upon written request of the commissioner by certified mail, an insurer writing the peril of residential hurricane coverage in this State shall within thirty days after receipt of the request, make accessible to the commissioner or commissioner's designee information verifying that the insurer has the financial assets and ability to cover its hurricane insurance exposure. The information to be made accessible shall include:
(1) The aggregate amount of hurricane coverage premiums and aggregate limits of coverage by type of coverage, which shall be compiled on a quarterly basis;
(2) The probable maximum loss associated with the above aggregate limits, assuming the occurrence of a hurricane of a severity unlikely to occur more frequently than once every one hundred years, as that loss is estimated in a report prepared by a recognized hurricane modeling company;
(3) All financial information relating to the insurer's capital base and reinsurance program for hurricane losses, such as:
(A) Information describing the reinsurance program in place as of the date notice was received;
(B) The names and financial ratings of each reinsurer;
(C) Aggregate limits of reinsurance coverage available; and
(D) Reinstatement provisions; and
(4) Any other related information the commissioner may require to evaluate the adequacy of the program.
(b) If the commissioner determines that the loss estimated pursuant to subsection (a) exceeds the sum of an insurer's capitalization and available reinsurance, the commissioner may further examine that insurer's financial position as allowed by article 2 and commence supervisory and other appropriate proceedings under article 15.
(c) The cost of an examination under this section shall be assessed against the insurer being examined and remitted to the commissioner for deposit into the compliance resolution fund.
(d) Any final order or decision of the commissioner under this section shall be made pursuant to chapter 91. [L 2001, c 120, §1; am L 2003, c 212, §24]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-307 Free insurance.

§431:3-307 Free insurance.
Except as otherwise provided by law, no insurer, either domestic, foreign or alien, shall issue or cause to be issued any policy of insurance of any type or description upon life or property, real or personal, whenever the policy of insurance is to be furnished or delivered to the purchaser or bailee of any property, real or personal, either as an inducement to purchase or bailment of the property, real or personal, or as a part of the consideration for the purchase or bailment of the property, real or personal. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-308 Alien government owned insurers.

§431:3-308 Alien government owned insurers.
No license to transact any kind of insurance business in this State shall be issued or renewed to any foreign or alien insurer or issued or continued in effect to any domestic insurer which is owned or financially controlled by another state of the United States other than this State, or by a foreign government, or by any political subdivision of either, or which is an agency or instrumentality of any such state, government, or subdivision, unless the insurer was so owned or controlled prior to January 1, 1957, and was authorized to do business in this State on or prior to that date. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-309 Disclosure of profits by insurers.

§431:3-309 Disclosure of profits by insurers.
All insurance companies transacting business in this State under authority provided by this code or any other provision of Hawaii law shall, within three months following the completion of the calendar year, submit to the commissioner a full and accurate written disclosure of:
(1) All profits derived from each line of insurance written for the applicable calendar year, and
(2) All profits for the entire company for the applicable calendar year.
All disclosures submitted pursuant to this section shall be in a form prescribed by the commissioner. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-405 Authorized control level event.

§431:3-405 Authorized control level event.
(a) "Authorized control level event" means any of the following events:
(1) The filing of a risk-based capital report by the insurer which indicates that the insurer's total adjusted capital is greater than or equal to its mandatory control level risk-based capital but less than its authorized control level risk-based capital;
(2) The notification by the commissioner to the insurer of an adjusted risk-based capital report that indicates the occurrence of the event in paragraph (1), if the insurer does not challenge the adjusted risk-based capital report under section 431:3-407;
(3) If, pursuant to section 431:3-407, the insurer challenges an adjusted risk-based capital report that indicates the occurrence of the event in paragraph (1), notification by the commissioner to the insurer that the commissioner, after a hearing, has rejected the insurer's challenge;
(4) The failure of the insurer to respond in a manner satisfactory to the commissioner to a corrective order; provided the insurer has not challenged the corrective order under section 431:3-407; or
(5) If the insurer has challenged a corrective order under section 431:3-407 and the commissioner, after a hearing, has rejected the challenge or modified the corrective order, the failure of the insurer to respond in a manner satisfactory to the commissioner to the corrective order subsequent to rejection or modification by the commissioner.
(b) In the event of an authorized control level event with respect to an insurer, the commissioner shall:
(1) Take any actions that are required under section 431:3-404 regarding an insurer with respect to which a regulatory action level event has occurred; or
(2) If the commissioner deems it to be in the best interests of the policyholders and creditors of the insurer and of the public, take any actions that are necessary to cause the insurer to be placed under regulatory control under article 15. In the event the commissioner takes such actions, the authorized control level event shall be deemed sufficient grounds for the commissioner to take action under article 15, and the commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in article 15. In the event the commissioner takes actions under this paragraph pursuant to an adjusted risk-based capital report, the insurer shall be entitled to the protections that are afforded to insurers under the provisions of section 431:15-201. [L 1994, c 190, pt of §1; am L 1995, c 61, §2 as superseded by c 232, §4; am L 1997, c 75, §8; am L 1999, c 128, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:3-407 Hearing.

§431:3-407 Hearing.
(a) The insurer shall have the right to a hearing pursuant to chapter 91 upon being notified of any of the following:
(1) Notification to an insurer by the commissioner of an adjusted risk-based capital report;
(2) Notification to an insurer by the commissioner that:
(A) The insurer's risk-based capital plan or revised risk-based capital plan is unsatisfactory; and
(B) The notification constitutes a regulatory action level event with respect to the insurer;
(3) Notification to any insurer by the commissioner that the insurer has failed to adhere to its risk-based capital plan or revised risk-based capital plan and that the failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event with respect to the insurer in accordance with its risk-based capital plan or revised risk-based capital plan; or
(4) Notification to an insurer by the commissioner of a corrective order with respect to the insurer.
(b) The insurer shall have the right to a confidential hearing exempt from chapter 92, on the record, and pursuant to chapter 91, at which the insurer may challenge any determination or action by the commissioner. The insurer shall notify the commissioner of its request for a hearing within five days after receiving the notification by the commissioner pursuant to subsection (a). Upon receipt of the insurer's request for a hearing, the commissioner shall set a date for the hearing, which date shall be no less than ten days, nor more than thirty days, after the date of the insurer's request. [L 1994, c 190, pt of §1; am L 1995, c 61, §2 as superseded by c 232, §4; am L 1997, c 75, §10; am L 1999, c 128, §2]