reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-14 Immunity and limitation on liability.

§431P-14
Immunity and limitation on liability.
There shall be no liability on the part of, and no cause of action of any nature shall arise against, any servicing facility or its authorized insurance producers; the fund or its agents, employees, or board; the State; the commissioner; or the commissioner's representatives for any action taken by them in the performance of their powers and duties under this chapter; provided that this section shall not be construed to prohibit any exercise of the commissioner's power pursuant to this chapter or any other law or rule adopted pursuant to law or chapters 661 and 662, any other law to the contrary notwithstanding. Nothing in this chapter shall create an obligation, debt, claim, cause of action, claim for relief, charge, or any other liability of any kind whatsoever in favor of any person or entity without regard to whether that person or entity received any benefits under this chapter, against the State, or its officers and employees. The State and its officers and employees shall not be liable for the results of any application, denial of application, claim, loss, or other benefits provided by the fund pursuant to this chapter. Nothing in this chapter shall be construed as authorizing any claim against the State whatsoever, nor shall this chapter be construed as authorizing any claim against the fund in excess of any note, loan, liability, or other obligation incurred by the fund. Nothing in this section shall be construed to alter any obligation to pay assessments or charges authorized to be imposed or levied by the board pursuant to this chapter. The fund shall be subject to chapter 431 only as provided for in this chapter. [L 1993, c 339, pt of §2; am L 1998, c 106, §6; am L 2002, c 155, §101]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-15 Exemption from property and liability insurance guaranty association; insolvency of fund.

§431P-15
Exemption from property and liability insurance guaranty association; insolvency of fund.
Notwithstanding any other provision of law to the contrary, neither the fund nor its policyholders shall be subject to the provisions of, or be eligible for, the benefits provided in sections 431:16-101 to 117 inclusive. If the total amount available at any time to the fund is insufficient to make all necessary payments, the moneys available shall be prorated and the unpaid portion shall be paid as soon thereafter as moneys become available. [L 1993, c 339, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-16.5 Immunity.

§431P-16.5 Immunity.
There shall be no cause of action, claim for damages or relief, charge, or any other liability of any kind whatsoever created against the State, the Hawaii hurricane relief fund, the commissioner, or their respective agents, employees, or board, by, or relating to the loss mitigation grant program. [L 2002, c 179, §4; am L 2011, c 124, §48]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-18 Exemption for Hawaiian home lands.

§431P-18
Exemption for Hawaiian home lands.
Nothing in this chapter shall prohibit or limit any person from obtaining insurance for property subject to the Hawaiian Homes Commission Act of 1920, as amended, from any insurer other than the fund if such insurance is deemed sufficient by the commissioner. [L 1993, c 339, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431R. Prescription Drug Benefits › 431R-1 Definitions.

§431R-1 Definitions.
As used in this chapter, unless the context indicates otherwise:
"Beneficiary of a prescription drug benefit plan" or "beneficiary" means a person who is a member, subscriber, enrollee, or dependent of a member, subscriber, or enrollee of or otherwise covered under a prescription drug benefit plan.
"Pharmacy benefit manager" means any person, business, or entity that performs pharmacy benefit management, including but not limited to a person or entity under contract with a pharmacy benefit manager to perform pharmacy benefit management on behalf of a managed care company, nonprofit hospital or medical service organization, insurance company, third-party payor, or health program administered by the State.
"Pharmacy benefit manager's retail pharmacy network" means a retail pharmacy located and licensed in the State and contracted by the pharmacy benefit manager to sell prescription drugs to beneficiaries of a prescription drug benefit plan administered by the manager.
"Prescription drug benefit plan" means an accident and sickness insurance plan or health benefits plan that includes coverage for prescription drugs. For the purposes of this definition, a "health benefits plan" has the same meaning as in section 87A-1.
"Prescription drug benefit plan provider" means a person who provides prescription drug coverage as part of an accident and health or sickness insurance contract or other type of health insurance or benefits plan that is offered by the person and is subject to regulation under article 10A of chapter 431, chapter 432, or chapter 432D.
"Retail community pharmacy" means a pharmacy, permitted by the board of pharmacy pursuant to section 461-14, that is open to the public, dispenses prescription drugs to the general public, and makes available face-to-face consultations between licensed pharmacists and the general public to whom prescription drugs are dispensed. [L 2013, c 226, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431R. Prescription Drug Benefits › 431R-2 Retail community pharmacies; retail pharmacy network; contractual agreements.

§431R-2 Retail community pharmacies; retail pharmacy network; contractual agreements.
(a) An otherwise qualified retail community pharmacy registered to do business in this State that requests to enter into a contractual retail pharmacy network agreement accepting the standard terms, conditions, formularies, or requirements relating to dispensing fees, payments, reimbursement amounts, or other pharmacy services shall be considered part of a pharmacy benefit manager's retail pharmacy network for purposes of a beneficiary's right to choose where to purchase covered prescription drugs under section 431R-3.
(b) It shall be a violation of this section for a prescription drug benefit plan, health benefits plan under chapter 87A, or pharmacy benefit manager to refuse to accept an otherwise qualified retail community pharmacy as part of a pharmacy benefit manager's retail pharmacy network.
(c) A contractual retail pharmacy network agreement entered into under this section shall be renewed annually, unless agreed to by the parties. If a prescription drug benefit plan, health benefits plan under chapter 87A, or pharmacy benefit manager who has entered into a contractual retail pharmacy network agreement with a retail community pharmacy considers such retail community pharmacy no longer otherwise qualified, the prescription drug benefit plan, health benefits plan under chapter 87A, or pharmacy benefit manager may appeal the retail community pharmacy's qualifications with the insurance commissioner.
(d) The insurance commissioner shall determine the standards and requirements necessary for a retail community pharmacy to be deemed "otherwise qualified" for purposes of this section. [L 2013, c 226, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431R. Prescription Drug Benefits › 431R-3 Prescription drugs; beneficiary choice; mail order opt out.

§431R-3 Prescription drugs; beneficiary choice; mail order opt out.
(a) If a retail community pharmacy enters into a contractual retail pharmacy network agreement pursuant to section 431R-2,
a prescription drug benefit plan, health benefits plan under chapter 87A, or pharmacy benefit manager shall permit each beneficiary, at the beneficiary's option, to fill any covered prescription that may be obtained by mail order at any retail community pharmacy of the beneficiary's choice within the pharmacy benefit manager's retail pharmacy network.
(b) A prescription drug benefit plan, health benefits plan under chapter 87A, or pharmacy benefit manager who has entered into a contractual retail pharmacy network agreement with a retail community pharmacy shall not:
(1) Require a beneficiary to exclusively obtain any prescription from a mail order pharmacy;
(2) Impose upon a beneficiary utilizing the retail community pharmacy a copayment, fee, or other condition not imposed upon beneficiaries electing to utilize a mail order pharmacy;
(3) Subject any prescription dispensed by a retail community pharmacy to a beneficiary to a minimum or maximum quantity limit, length of script, restriction on refills, or requirement to obtain refills not imposed upon a mail order pharmacy;
(4) Require a beneficiary in whole or in part to pay for any prescription dispensed by a retail community pharmacy and seek reimbursement if the beneficiary is not required to pay for and seek reimbursement in the same manner for a prescription dispensed by a mail order pharmacy;
(5) Subject a beneficiary to any administrative requirement to use a retail community pharmacy that is not imposed upon the use of a mail order pharmacy; or
(6) Impose any other term, condition, or requirement pertaining to the use of the services of a retail community pharmacy that materially and unreasonably interferes with or impairs the right of a beneficiary to obtain prescriptions from a retail community pharmacy of the beneficiary's choice. [L 2013, c 226, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431R. Prescription Drug Benefits › 431R-4 Report to insurance commissioner.

§431R-4 Report to insurance commissioner.
(a)
No later than March 31 of each calendar year, each prescription drug benefit plan, health benefits plan under chapter 87A, and pharmacy benefit manager shall file with the insurance commissioner, in such form and detail as the insurance commissioner shall prescribe, a report for the preceding calendar year stating that the pharmacy benefit manager or prescription drug benefit plan is in compliance with this chapter. The report shall fully disclose the amount, terms, and conditions relating to copayments, reimbursement options, and other payments associated with a prescription drug benefit plan.
(b) The insurance commissioner shall review and examine records supporting the accuracy and completeness of the report and, no later than ninety days after the receipt of the report, shall make available to a purchaser of a prescription drug benefit plan and to any retail community pharmacy participating in a retail pharmacy network under section 431R-2 that provides benefits to beneficiaries of a prescription drug benefit plan a summary of the amount, terms, and conditions relating to copayments, reimbursement options, and other payments associated with a prescription drug benefit plan. [L 2013, c 226, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431R. Prescription Drug Benefits › 431R-5 Violations; penalties.

§431R-5 Violations; penalties.
(a) The insurance commissioner may assess a fine of up to $10,000 for each violation by a pharmacy benefit manager or prescription drug benefit plan provider who is in violation of section 431R-2 or 431R-3. In addition, the insurance commissioner may order the pharmacy benefit manager to take specific affirmative corrective action or make restitution.
(b) Failure of a pharmacy benefit manager to comply with a previously agreed upon contractual retail pharmacy network agreement pursuant to section 431R-2 or 431R-3 shall be an unfair or deceptive act or practice as provided in section 431:13-102.
(c) A pharmacy benefit manager or prescription drug benefit plan provider may appeal any decision made by the insurance commissioner in accordance with chapter 91.
(d) Every person and its officers, employees, and representatives subject to investigation or examination by the commissioner under this chapter shall produce and make freely accessible to the commissioner the accounts, records, documents, and files in the person's possession or control relating to the subject of the investigation or examination and shall otherwise facilitate the investigation or examination.
(e) Every person and its officers, employees, and representatives subject to investigation or examination by the commissioner under this chapter shall issue a written response no later than fifteen working days after receiving a written inquiry from the commissioner regarding a claim or complaint. The response shall be more than an acknowledgment that the commissioner's communication has been received and shall adequately address the concerns stated in the communication. [L 2013, c 226, pt of §2; am L 2016, c 141, §15]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431R. Prescription Drug Benefits › 431R-6 Application.

§431R-6 Application.
If this chapter or any provision of this chapter conflicts at any time with any federal law, then the federal law shall prevail and this chapter or the relevant provisions of this chapter shall become ineffective and invalid. The ineffectiveness or invalidity of this chapter or any of its provisions shall not affect any other provisions or applications of this chapter, which shall be given effect without the invalid provision or application, and to this end, the provisions of this chapter are severable. [L 2013, c 226, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-101 Scope; exemptions.

Cross References
Assessments of health insurers, see §431:2-216.
PART I. GENERAL PROVISIONS
§432:1-101 Scope; exemptions.
The provisions of this article shall apply to mutual benefit societies as defined herein. Except as expressly provided in this article, mutual benefit societies shall be exempt from the provisions of the insurance code. No law enacted after July 1, 1988, shall apply to mutual benefit societies unless such societies are expressly designated therein. [L 1987, c 347, pt of §2]
Revision Note
"July 1, 1988," substituted for "the effective date of this article" pursuant to §23G-15.
Attorney General Opinions
Based on provision, the requirement of §431:10A-601 as set forth in §4 of reciprocal beneficiaries act [L 1997, c 383] cannot be interpreted to apply to mutual benefit societies. Att. Gen. Op. 97-5.
Case Notes
Section 431:15-102 creates an exception to the general rule established by this section that mutual benefit societies are typically exempt from provision of the Insurance Code; thus, article 15 of chapter 431 applies to mutual benefit societies. 99 H. 53, 52 P.3d 823 (2002).
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-101.5 Disclosure of health care coverage and benefits.

§432:1-101.5 Disclosure of health care coverage and benefits.
In order to ensure that all individuals understand their health care options and are able to make informed decisions, all mutual benefit societies shall provide current and prospective members with written disclosure of coverages and benefits, including information on coverage principles and any exclusions or restrictions on coverage.
The information provided shall be current, understandable, and available prior to membership, and upon request after membership. A policy provided to a member which describes coverages and benefits shall be in conformance with part I of article 10 of chapter 431. [L 1996, c 274, §2; am L 1999, c 246, §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-101.6 Policies relating to domestic abuse cases.

§432:1-101.6 Policies relating to domestic abuse cases.
(a) No mutual benefit society shall deny or refuse to accept an application for insurance, refuse to insure, refuse to renew, cancel, restrict, or otherwise terminate a policy of insurance, or charge a different rate for the same coverage, on the basis that the member or prospective member is, has been, or may be a victim of domestic abuse.
(b) Nothing in this section shall prevent a mutual benefit society from taking any of the actions set forth in subsection (a) on the basis of loss history or medical condition, or for any other reason not otherwise prohibited by this section or any other law, regulation, or rule.
(c) Any form filed or filed after July 15, 1998 or subject to a rule adopted under chapter 91 may exclude coverage for losses caused by intentional or fraudulent acts of any member of the society.
(d) Nothing in this section prohibits a mutual benefit society from investigating a claim and complying with chapter 432.
(e) As used in this section, "domestic abuse" means:
(1) Physical harm, bodily injury, assault, or the infliction of fear of imminent physical harm, bodily injury, or assault between family or household members;
(2) Sexual assault of one family or household member by another;
(3) Stalking of one family or household member by another family or household member;
(4) Intentionally, knowingly, or recklessly causing damage to property so as to intimidate or attempt to control the behavior of another household member; or
(5) Coercive control, as defined in section 586-1, between family or household members. [L 1998, c 171, §3; am L 2004, c 122, §84; am L 2020, c 20, §2]
Revision Note
"July 15, 1998" substituted for "the effective date of this section" pursuant to §23G-15.
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-102 Applicability of other laws.

§432:1-102 Applicability of other laws.
(a) Part III of article 10A, and article 10H of chapter 431 shall apply to nonprofit medical indemnity or hospital service associations. Such associations shall be exempt from the provisions of part I of article 10A; provided that such exemption is in compliance with applicable federal statutes and regulations.
(b) Article 2, article 2D, parts II and IV of article 3, article 6, part III of article 7, article 9A, article 13, article 14G, and article 15 of chapter 431, sections 431:3-301, 431:3-302, 431:3-303, 431:3-304, 431:3-305, 431:10-102, 431:10-225, 431:10-226.5, and 431:10A-116(1) and (2), and the powers granted by those provisions to the commissioner, shall apply to managed care plans, health maintenance organizations, or medical indemnity or hospital service associations that are owned or controlled by mutual benefit societies so long as the application in any particular case is in compliance with and is not preempted by applicable federal statutes and regulations.
(c) Article 9J of chapter 431 shall apply to mutual benefit societies.
(d) The commissioner may adopt rules pursuant to chapter 91 for the implementation and administration of this chapter. [L 1987, c 347, pt of §2; am L 1998, c 178, §3; am L 1999, c 93, §6; am L 2002, c 74, § §3, 6; am L 2003, c 3, §22; am L 2007, c 175, §3 and c 227, §2; am L 2011, c 80, §7; am L 2012, c 251, §2; am L 2013, c 56, §1; am L 2015, c 63, §11; am L 2016, c 141, §16; am L 2019, c 72, §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-103 Applicability of this article to existing societies and union mutual benefit societies.

§432:1-103
Applicability of this article to existing societies and union mutual benefit societies.
(a) None of the provisions of this article shall apply to, or in any way be held to affect, mutual benefit and fraternal societies which have been in existence and functioning within the State continuously for ten years prior to May 8, 1937.
(b) The provisions of this article shall apply to labor union mutual benefit societies, which are also regulated by Public Law 85-836, but the commissioner may waive any of the specific requirements of this article if the commissioner is satisfied that the labor union members and their dependents belonging to the mutual benefit society will not be adversely affected by the waiver. Each labor union mutual benefit society shall file with the commissioner annually a copy of the report filed under Public Law 85-836 and a complete financial report prepared by a certified public accountant. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-104 Definitions.

§432:1-104
Definitions.
For the purposes of this article:
"Commissioner" means the insurance commissioner of the State.
"Mutual benefit society" means any corporation, unincorporated association, society, or entity:
(1) Organized and carried on for the primary benefit of its members and their beneficiaries and not for profit, and:
(A) Making provision for the payment of benefits in case of sickness, disability, or death of its members, or disability, or death of its members' spouses or reciprocal beneficiaries or children; or
(B) Making provision for the payment of any other benefits to or for its members,
whether or not the amount of the benefits is fixed or rests in the discretion of the society, its officers, or any other person or persons; and the fund from which the payment of the benefits shall be defrayed is derived from assessments or dues collected from its members, and the payment of death benefits is made to the families, including reciprocal beneficiaries, heirs, blood relatives, or persons named by its members as their beneficiaries; or
(2) Organized and carried on for any purpose that:
(A) Regularly requires money to be paid to it by its members, whether the money be in the form of dues, subscriptions, receipts, contributions, assessments, or otherwise; and
(B) Provides for the payment of any benefit or benefits or the payment of any money or the delivery of anything of value to its members or their relatives, including reciprocal beneficiaries, or to any person or persons named by its members as their beneficiaries, or to any class of persons that includes or may include its members,
whether or not the amount or value of the benefit, benefits, money, or thing of value is fixed, or rests in the discretion of the society, its officers, or any other person or persons; or
(3) Organized and carried on for any purpose whose requirements and provisions, although not identical with, are determined by the commissioner to be substantially similar to those enumerated in paragraphs (1) and (2).
Participating in a legal service plan subject to chapter 488 shall not in itself make a corporation, unincorporated association, society, or entity a mutual benefit society and subject to this article. [L 1987, c 347, pt of §2; am L 1993, c 350, §18; am L 1997, c 383, §60; am L 2012, c 34, §23; am L 2018, c 18, §28]
Attorney General Opinions
Effect of amendment to section [by L 1997, c 383] was to allow, but not require, a mutual benefit society to make provision for payment of benefits to reciprocal beneficiaries. Att. Gen. Op. 97-5.
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-104.5 Bona fide trade associations.

§432:1-104.5 Bona fide trade associations.
(a) At the option of a bona fide trade association, or its designated agent, a mutual benefit society that operates a health plan and sells health insurance to the bona fide trade association shall treat the bona fide trade association and its members as a group for the purpose of issuing a group hospital or medical service plan, policy, contract, or agreement; provided that:
(1) The bona fide trade association shall have been formed for purposes other than obtaining insurance;
(2) The mutual benefit society shall be prohibited from restricting, in any manner, the number or types of health plans issued by another insurance entity that the bona fide trade association may offer to its members, including but not limited to such restrictions as clauses that reduce competition between insurers or clauses that require a bona fide trade association to allow an insurer to match the price or terms offered by another insurer; and
(3) Each member of the bona fide trade association shall not be required to be insured under the group policy;
and provided further that this section shall be inapplicable if less than two persons from the bona fide trade association seek to be insured under the group policy.
(b) As used in this section:
"Bona fide trade association" means an association of persons organized to promote common interests and comprised of persons engaged in a business, trade, or profession that:
(1) Has been actively in existence for five years;
(2) Has been formed and maintained in good faith for purposes other than obtaining insurance;
(3) Does not condition membership in the association on any health status related factor pertaining to an individual (including an employee of an employer or a dependent of an employee);
(4) Makes health insurance coverage offered through the association available to all members regardless of any health status related factor pertaining to such members (or individuals eligible for coverage through a member);
(5) Does not make health insurance coverage offered through the association available other than in connection with a member of the association; and
(6) Meets such additional requirements as may be imposed under state law. [L 2004, c 118, § §2, 5; am L 2006, c 41, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-105 Penalty.

§432:1-105
Penalty.
There shall be a fine of not more than $1,000 or imprisonment of not more than one year, or both, for:
(1) Any person who is found in the State as officer, member, principal, agent, or in any other capacity, soliciting or conducting or operating the business of a mutual benefit society, as defined in section 432:1-104, not qualified and licensed to operate the business in conformity with this article, or
(2) Any trustee, officer, or other person in charge of the affairs of any such society, who authorizes, sanctions, or permits the issuance of any certificate, policy, or
contract, for the payment of benefits in violation of this article, or
(3) Any person who violates any other provision of this article relating to mutual benefit societies. [L 1987, c 347, pt of §2; am L 2002, c 155, §103]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-107 Federal law compliance.

§432:1-107 Federal law compliance.
A mutual benefit society shall comply with applicable federal law. The commissioner shall enforce the consumer protections and market reforms relating to insurance as set forth in the federal Patient Protection and Affordable Care Act, Public Law 111-148. [L 2011, c 15, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-108 Fees.

§432:1-108 Fees.
(a) The commissioner shall collect, in advance, the following fees:
(1) Certificate of authority:
(A) Application for a certificate of authority: $900; and
(B) Issuance of certificate of authority: $600;
(2) Organization of domestic mutual benefit societies:
(A) Application for a certificate of registration: $1,500; and
(B) Issuance of certificate of registration: $150; and
(3) For all services subsequent to the issuance of a certificate of authority, including extension of the certificate of authority: $600 per year.
The commissioner may, upon showing of good cause, waive or modify, in whole or part, all fees in this subsection by order.
(b) 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 shall 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. If the fee for the extension of the certificate of authority is not paid before or on the extension date, a penalty shall be imposed in the amount of fifty per cent of the fee. The commissioner shall provide notice in writing of the delinquency of extension and the imposition of the authorized penalty. If the fee and the penalty are not paid within thirty days immediately following the date of the notice of delinquency, the commissioner may revoke the certificate of authority and may not reinstate the certificate of authority until the fee and penalty have been paid.
(c) All fees and penalties collected pursuant to this section and penalties collected pursuant to sections 432:1-105, 432:1-405, and 432:1-407 shall be deposited to the credit of the compliance resolution fund. [L 2012, c 251, §1; am L 2015, c 63, §12; am L 2021, c 110, §19]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-201 Incorporation by charter.

§432:1-201 Incorporation by charter.
Any mutual benefit society may be or become incorporated by charter, notwithstanding any limitations under the corporation law as to the purposes for which charters may be granted. Any society so chartered as a corporation shall be subject in all respects to this article. [L 1987, c 347, pt of §2; am L 2001, c 217, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-202 Constitution and bylaws; officers; government of society.

§432:1-202
Constitution and bylaws; officers; government of society.
(a) Mutual benefit societies promising or offering to pay death, sick, disability, or other benefits in an amount equal to or in excess of $25 shall, subject to the approval of the commissioner, have the power to make a constitution and bylaws for the government of the society, the admission of its members, the management of its affairs, and the fixing and readjusting of the rates of contribution of its members. The societies shall have the power to amend the constitution and bylaws and such other powers as are necessary to carry into effect the object and purpose of the society, but shall not suspend temporarily any part of its constitution or bylaws as the same are governed by this article.
(b) Each mutual benefit society shall elect or otherwise appoint among its officers a president and a treasurer, who shall be residents of the State.
(c) After the organization of a society is completed and a certificate of registration is granted by the commissioner, the society shall be governed by its administrative board or body in accordance with its constitution and bylaws.
(d) Upon compliance with this article any society engaged in transacting business or operating in this State may exercise all of the rights conferred by this article, and all of the rights, powers and privileges possessed by it under its constitution and bylaws, rules and regulations, or articles of incorporation or charter not inconsistent with this article. [L 1987, c 347, pt of §2; am L 2012, c 251, §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-204 Foreign societies.

§432:1-204
Foreign societies.
Any foreign society subject to this article shall not be excused or relieved from compliance with this article by reason of the nonresidence of its members. Upon a showing to the satisfaction of the commissioner that it is impracticable and would work a hardship to comply with section 432:1-202(b) the commissioner shall permit the society to qualify in this respect upon its appointment of a resident agent, in the same manner and subject to the same conditions as are provided for in the case of foreign corporations under the general laws on corporations. Section 432:1-202(b) shall likewise be applicable to the agent. [L 1989, c 195, §9]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-301 Registration with commissioner: certificate of registration and certificate of authority.

§432:1-301
Registration with commissioner: certificate of registration and certificate of authority.
(a) Before doing business or engaging in any act, any mutual benefit society as defined in section 432:1-104 shall file with the commissioner:
(1) Copies of its constitution or organic instrument under which it purports to operate, the bylaws, and rules and regulations, if any;
(2) If a society promising or offering to pay death, sick, disability, or other benefits in an amount equal to or in excess of $25:
(A) Copies of all proposed forms of benefit certificates, applications, and circulars to be issued by the society; and
(B) A bond in the sum of $25,000 with sureties approved by the commissioner. The bond shall be conditioned upon the return of the advance payments referred to in section 432:1-304, if the organization is not completed within one year; and
(3) Any additional information as the commissioner may require.
(b) Except as provided in section 432:1-302, upon the filing of the information required by subsection (a), if it appears to the commissioner's satisfaction that the purposes of the society are lawful, not for profit, and for the benefit of its members, the commissioner shall issue a certificate of registration authorizing the society to solicit members as provided in section 432:1-303.
(c) Upon issuance of a certificate of registration pursuant to subsection (b), the society may apply for a certificate of authority. The applicant society shall provide to the commissioner:
(1) Evidence of compliance with the special deposit requirements of section 432:1-304; and
(2) A description of the procedures, approved by the society's administrative board or body in accordance with its constitution and bylaws, to be implemented to comply with the protection against insolvency requirements of section 432:1-407.
(d) The applicant society that satisfies the requirements of this chapter shall be issued a certificate of authority in accordance with part II of article 3 of chapter 431. Societies that are currently authorized to transact business in this State may continue to transact business until August 16, 2013. The authority of societies and all societies hereafter issued a certificate of authority may thereafter be extended in accordance with section 432:1-108.
The applicant society may appeal a denial of its application pursuant to chapter 91. [L 1987, c 347, pt of §2; am L 2004, c 122, §86; am L 2012, c 251, §4; am L 2015, c 63, §13; am L 2018, c 18, §29]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-302 Commissioner refusal to authorize certificate or solicitation; appeal to circuit court.

§432:1-302 Commissioner refusal to authorize certificate or solicitation; appeal to circuit court.
(a) If the commissioner reasonably believes that the financial plan of the society is unsound or not feasible from an actuarial or other accounting standpoint, the commissioner shall refuse to issue a certificate, authorize the society to solicit members, or engage in business.
(b) Any person aggrieved by the decision of the commissioner refusing to issue the certificate, or to authorize the society to solicit members, or to engage in business, may within twenty days after the decision appeal to the circuit court of the circuit in which the society proposes to have its principal place of business. The procedure upon appeal shall be the same as in the case of other appeals to the circuit court in civil cases. The court shall hear the appeal without a jury. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-303 Authority to offer death, sick, disability, or other benefits; conditions.

§432:1-303 Authority to offer death, sick, disability, or other benefits; conditions.
(a) Each society promising or offering to pay death, sick, disability, or other benefits in an amount equal to or in excess of $25 may solicit members for the purpose of completing its organization upon receipt from the commissioner of the certificate of registration required in section 432:1-301, and may collect from each applicant the amount of not more than one regular monthly payment and shall issue to each applicant a receipt for the amount so collected.
(b) Except as hereinafter provided, no society shall incur any liability other than for the advance payments, nor issue any benefit certificate, nor allow, or offer or promise to pay, or allow to any person any death benefit until:
(1) Actual bona fide applications for death certificates have been secured upon at least one hundred lives for at least $25 each, and all the applicants for death benefits have been regularly examined by a qualified practicing physician, and certificates of the examination have been duly filed with and approved by the administrative board or body of the society; and
(2) At least one hundred applicants have been accepted for membership; and
(3) There has been submitted to the commissioner, under oath of the president and secretary, or corresponding officers of the society, a list of applicants including the following information about each applicant:
(A) Name and address,
(B) Date examined,
(C) Date of approval,
(D) Date accepted as member,
(E) If subordinate branches have been established, the name and number of the subordinate branch of which each applicant is a member,
(F) Amount of benefits to be granted, and
(G) The rate of stated periodical contributions which shall be sufficient to provide for meeting the mortuary obligations contracted when valued for death purposes upon the basis of a recognized table of mortality or any mutual benefit standard based on at least twenty years' experience, and for disability benefits by tables based upon reliable experience, and for combined death and permanent total disability benefits by tables based upon reliable experience; and
(4) It has been shown to the commissioner by the sworn statement of the treasurer or corresponding officer of the society that at least one hundred applicants have paid in cash at least one regular monthly payment as provided under subsection (a), which payments in the aggregate shall amount to at least five times the maximum amount of death benefit offered or promised to be paid to any one member.
(c) If the society does not offer or promise to pay any death benefits in excess of $25 upon the death of a member, but merely offers or promises to pay disability benefits by reason of sickness or injury, or to pay any other benefits, with or without provision of death benefit in excess of $25, the society shall apply for a certificate of authority from the commissioner. [L 1987, c 347, pt of §2; am L 2012, c 251, §5]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-304 Authority to offer death, sick, disability, or other benefits; special deposit and control of certain funds.

§432:1-304 Authority to offer death, sick, disability, or other benefits; special deposit and control of certain funds.
Except as provided in this section and section 432:1-305, all regular payments received for account of death benefit, accident and health or sickness, or other benefits, during the period of organization of a society, shall not be used for the payment of any expenses of the society, but shall be placed on deposit or in trust in some bank or trust company approved by the commissioner, payable to the society but under the joint control with the commissioner. In case the organization of the society is not completed within one year, the funds shall be returned to the applicants or members who made payments of the respective amounts. If, however, the organization is completed and the commissioner issues a certificate of authority, the funds so deposited in trust, together with interest, if any, shall be released by the commissioner in favor of the society. [L 1987, c 347, pt of §2; am L 2004, c 122, §87; am L 2012, c 251, §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-305 Authority to offer death, sick, disability, or other benefits; restrictions on use of funds.

§432:1-305 Authority to offer death, sick, disability, or other benefits; restrictions on use of funds.
(a) At no time shall the society, except as provided in subsection (c), use more than twenty-five per cent of the payments up to $100,000 and seven per cent of the payments in excess of $100,000, received from its members or applicants in the form of admission fees, dues, contributions, or assessments of any nature for expenses other than taxes, in connection with its management or operations.
(b) Any commissions or other payments or allowances to persons soliciting membership in or making collections for the society shall be included in the foregoing expenditures and no part of the commissions, payments or allowances may be in addition thereto; provided, that any society which exacts a membership fee of its new members not in excess of $10 for each membership may pay commissions or other payments to persons soliciting membership out of the fund created by the membership fees, and the amounts so paid as commissions or as such other payments out of such fund shall not be considered as expenses within the meaning of section 432:1-304 and section [432:1-305].
(c) Any association or society organized and operating solely as a nonprofit medical indemnity or hospital service association or society may use for such expenses, in addition to taxes, not more than thirty-five per cent of the payments received from its members or applicants in the form of admission fees, dues, contributions, or assessments of any nature. [L 1987, c 347, pt of §2; am L 2012, c 251, §7]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-306 Authority to offer death, sick, disability, or other benefits; deposit or bond.

§432:1-306
Authority to offer death, sick, disability, or other benefits; deposit or bond.
(a) The society shall deposit with the commissioner fifty per cent of the minimum net worth requirement provided in section 432:1-407(a)(2), either in cash or in securities approved by the commissioner; provided that the deposit shall be no less than $1,000,000 and shall not exceed $20,000,000.
(b) In lieu of such deposit, the society shall file with the commissioner a good and sufficient bond in the amount prescribed in subsection (a), signed by the society as principal with one or more sureties to be approved by the commissioner and running to the commissioner and the commissioner's successors in office. The bond shall be conditioned that the surety or sureties on the bond shall be answerable in the amount of the bond for all judgments, decrees or orders given, made or rendered against the principal on the bond by any court of the State for payment of money. [L 1987, c 347, pt of §2; am L 2011, c 81, §11]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-402 Investments of certain mutual benefit societies.

§432:1-402 Investments of certain mutual benefit societies.
No domestic mutual benefit society promising or offering to pay death, sick, disability, or other benefits in an amount equal to or in excess of $25 shall invest any of its assets other than as authorized and provided for in respect to domestic insurance companies and societies under the provisions of article 6 of the insurance code, which provisions are hereby extended to and made applicable to the mutual benefit societies. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-403 Nonprofit medical, hospital indemnity associations; tax exemption.

§432:1-403 Nonprofit medical, hospital indemnity associations; tax exemption.
Every association or society organized and operating under this article solely as a nonprofit medical indemnity or hospital service association or society or both shall be, from the time of such organization, exempt from every state, county and municipal tax, except unemployment compensation tax. Nothing in this section shall be deemed to exempt the association or society from liability to withhold the taxes payable by its employees and to pay the same to the proper collection officers, and to keep such records, and make such returns and reports, as may be required in the case of other corporations, associations or societies similarly exempted from such taxes. [L 1987, c 347, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 432. Benefit Societies › 432:1-404 Annual exhibits.

§432:1-404 Annual exhibits.
(a) Each society shall file with the commissioner annually, on or before March 1 in each year, a statement under oath, and in such form and detail as the commissioner shall prescribe; provided that any association or society organized and operating as a nonprofit medical indemnity or hospital service association shall file a report with the commissioner covering the preceding calendar year and verified by at least two principal officers. Each mutual benefit society shall file quarterly with the commissioner, on or before the forty-fifth day after each quarter, a copy of its quarterly report verified by at least two principal officers. The report shall comply with sections 431:3-301 and 431:3-302. The commissioner may prescribe the forms on which the report is to be filed.
In addition, any association or society organized and operating as a nonprofit medical indemnity or hospital service association annually shall file with the commissioner the following by the dates specified:
(1) An audit, by an independent certified public accountant or an accounting firm designated by the association or society, of the financial statements, reporting the financial condition and results of operations of the association or society on or before June 1, or a later date as the commissioner upon request or for cause may specify. The association or society, on an annual basis and prior to the commencement of the audit, shall notify the commissioner in writing of the name and address of the person or firm retained to conduct the annual audit. The commissioner may disapprove the association's or society's designation within fifteen days of receipt of the association's or society's notice, and the association or society shall be required to designate another independent certified public accountant or accounting firm. The audit required by this paragraph shall be prepared in accordance with the National Association of Insurance Commissioners' accounting practices and procedures manual and rules adopted by the commissioner following the practices and procedures prescribed by the National Association of Insurance Commissioners; and
(2) A description of the available grievance procedures, the total number of grievances handled through those procedures, a compilation of the causes underlying those grievances, and a summary of the final disposition of those grievances on or before March 1.
(b) Labor union mutual benefit societies shall file annually a copy of the report filed under Public Law 85-836 and a complete financial report prepared by a certified public accountant. [L 1987, c 347, pt of §2; am L 2000, c 74, §3; am L 2003, c 212, §121; am L 2010, c 116, §2]