reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-7.5 Purchasing group taxation. Premium taxes and taxes on premiums paid for coverage of risks resident or located in this State by a purchasing group or any members of the purchasing group shall be: (1) Imposed at the same rate and subject to the same interest, fines, and penalties as that applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insurers; and (2) Paid first by that insurance source, and if not by that source, then by the producer for the purchasing group, and if not by that producer, then by the purchasing group, and if not by that purchasing group, then by each of its members. [L 1993, c 321, §4; am L 2002, c 155, §99]

§431K-7.5
Purchasing group taxation.
Premium taxes and taxes on premiums paid for coverage of risks resident or located
in this State by a purchasing group or any members of the purchasing group shall be:
(1) Imposed at the same rate and subject to the same interest, fines, and penalties as that applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insurers; and
(2) Paid first by that insurance source, and if not by that source, then by the producer for the purchasing group, and if not by that producer, then by the purchasing group, and if not by that purchasing group, then by each of its members. [L 1993, c 321, §4; am L 2002, c 155, §99]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-8 Restrictions on insurance purchased by purchasing groups.

§431K-8 Restrictions on insurance purchased by purchasing groups.
(a) A purchasing group located in this State may not purchase insurance from:
(1) A risk retention group that is not chartered in this State; or
(2) An insurer not authorized in this State,
unless the purchase is made through a licensed producer acting pursuant to the surplus lines laws set forth in article 8 of chapter 431.
(b) The terms of any liability insurance policy obtained by a purchasing group shall not provide nor be construed to provide insurance coverage prohibited by chapter 431 or declared unlawful by the highest court of this State.
(c) A purchasing group which obtains liability insurance from an insurer not authorized in this State or a risk retention group shall inform each of the members of the group which have a risk resident or located in this State that the risk retention group or insurer may not be subject to any insurance laws of this State.
(d) No purchasing group may purchase insurance providing for a deductible or self-insured retention unless the deductible or self-insured retention shall be the sole responsibility of each individual member of the purchasing group. [L 1987, c 180, pt of §1; am L 1989, c 272, §7; am L 1998, c 76, §1; am L 2002, c 155, §100; am L 2006, c 154, §42]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-9 Administrative and procedural authority regarding risk retention groups and purchasing groups.

§431K-9 Administrative and procedural authority regarding risk retention groups and purchasing groups.
The commissioner is authorized to make use of any of the powers established under chapter 431 to enforce the laws of this State as long as those powers are not specifically preempted by the Product Liability Risk Retention Act of 1981, 15 U.S.C. §3901 et seq., as amended by the Risk Retention Amendments of 1986, P.L. 99-563. This includes, but is not limited to, the commissioner's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, and impose penalties. With regard to any investigation, administrative proceedings, or litigation, the commissioner may rely on the procedural law and rules of this State. The injunctive authority of the commissioner in regard to risk retention groups shall be restricted by the requirement that any injunction be issued by a court of competent jurisdiction. All penalties collected under this section and section 431K-7.1 shall be deposited to the credit of the compliance resolution fund. [L 1987, c 180, pt of §1; am L 2015, c 63, §9]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-10 Penalties.

§431K-10 Penalties.
A risk retention group which violates any provision of this chapter shall be subject to fines and penalties applicable to licensed insurers generally, including revocation of its license, the right to do business in this State, or both. All penalties collected pursuant to this section and section 431K-3.5 shall be deposited to the credit of the compliance resolution fund. [L 1987, c 180, pt of §1; am L 2015, c 63, §10]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-11 Duty of producer to obtain license and to keep records.

§431K-11 Duty of producer to obtain license and to keep records.
(a) Any person acting or offering to act as a producer for a risk retention group or purchasing group which solicits members, sells insurance coverage, purchases coverage for its members located within the State, or otherwise does business in this State, before commencing any such activity shall obtain a license from the commissioner.
(b) Whenever a licensed insurance producer or surplus lines producer places business pursuant to subsection (a), the producer shall keep a complete and separate record of each policy procured from a risk retention group and for a purchasing group. The record shall be open to examination by the commissioner. For each policy and each kind of insurance provided in the policy, the record shall include the following:
(1) The limit of liability and peril insured;
(2) A brief description of the property insured and its location;
(3) The effective date of the contract and its terms;
(4) The time period covered by the contract;
(5) The gross premium charged;
(6) Any return premiums paid;
(7) The name and address of the risk retention group which issued the policy;
(8) The name and address of the insured; and
(9) Any additional information required by the commissioner. [L 1987, c 180, pt of §1; am L 1989, c 272, §8; am L 2001, c 216, §26]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431K. Risk Retention › 431K-12 Binding effect of orders issued in United States District Court.

§431K-12 Binding effect of orders issued in United States District Court.
An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating in any state or in all states or in any territory or possession of the United States upon a finding that the group is in a hazardous financial condition shall be enforceable in the courts of this State. [L 1987, c 180, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431L. Medicaid-Related Mandates › 431L-1 Insurers prohibited from taking medicaid status into account.

§431L-1 Insurers prohibited from taking medicaid status into account.
Any health insurer (including a self-insured plan, a group health plan as defined in section 607(1) of the Employee Retirement Income Security Act of 1974, a health service benefit plan, a mutual benefit society, a fraternal benefit society, a health maintenance organization, a managed care organization, a pharmacy benefit manager, or other party that is, by statute, contract, or agreement, legally responsible for payment of a claim for a health care item or service) is prohibited, in enrolling an individual or in making any payments for benefits to the individual or on the individual's behalf, from taking into account that the individual is eligible for or is provided medical assistance under title 42 United States Code section 1396a (section 1902 of the Social Security Act) herein referred to as medicaid, for this State, or any other state. [L 1995, c 83, pt of §2; am L 2009, c 103, §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431L. Medicaid-Related Mandates › 431L-2 State's right to third party payments.

§431L-2 State's right to third party payments.
To the extent that payment has been made under the state plan for medical assistance for health care items or services furnished to an individual in any case where another party has a legal liability to make payment for such assistance, the State is considered to have acquired the rights of the individual to payment by the other party for those health care items or services. [L 1995, c 83, pt of §2; am L 2009, c 103, §4]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431L. Medicaid-Related Mandates › 431L-2.5 Insurer requirements.

§431L-2.5 Insurer requirements.
Any health insurer as identified in section 431L-1 shall:
(1) Provide upon the request of the State, information for all of its members to determine during what period the individual or the individual's spouse or dependents may be or may have been covered by a health insurer and the nature of the coverage that is or was provided by the health insurer, including the name, address, and identifying number of the plan in a manner prescribed by the State;
(2) Beginning in 2014, provide to an independent, third party entity, no more than quarterly, a report listing its members. The third party entity shall match this report with one provided by the department of human services and provide the department of human services with third party liability information for medical assistance recipients. The department of human services shall determine the minimum data required to ensure the validity of matches, which may include name, date of birth, and social security number, as available. The information provided by the health insurers to the third party entity shall not be used for any purpose other than that specified in this chapter. The department of human services shall provide for representation by private health insurers in evaluating the qualifications of potential third party entities and determining the minimum data fields for matching;
(3) Accept the State's right of recovery and the assignment to the State of any right of an individual or other entity to payment from the party for a health care item or service for which payment has been made for medical assistance under title 42 United States Code section 1396a (section 1902 of the Social Security Act);
(4) Respond to any inquiry by the State regarding a claim for payment for any health care item or service that is submitted not later than three years after the date of the provision of the health care item or service; and
(5) Agree not to deny a claim submitted by the State solely on the basis of the date of submission of the claim, the type or format of the claim form, or a failure to present proper documentation at the point-of-sale that is the basis of the claim, if:
(A) The claim is submitted by the State within the three-year period beginning on the date on which the health care item or service was furnished; and
(B) Any action by the State to enforce its rights with respect to the claim is commenced within six years of the State's submission of the claim. [L 2009, c 103, §2; am L 2012, c 95, §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431L. Medicaid-Related Mandates › 431L-3 Coverage of children.

§431L-3
Coverage of children.
(a) No insurer shall deny enrollment of a child under the health plan of the child's parent for the following grounds:
(1) The child was born out of wedlock;
(2) The child is not claimed as a dependent on the parent's federal tax return; or
(3) The child does not reside with the parent or in the insurer's service area.
(b) Where a child has health coverage through an insurer of a noncustodial parent the insurer shall:
(1) Provide such information to the custodial parent as may be necessary for the child to obtain benefits through that coverage;
(2) Permit the custodial parent (or the provider, with the custodial parent's approval) to submit claims for covered services without the approval of the noncustodial parent; and
(3) Make payments on claims submitted in accordance with paragraph (2) directly to the custodial parent, the provider, or the state medicaid agency.
(c) Where a parent is required by a court or administrative order to provide health coverage for a child, and the parent is eligible for family coverage, as defined in section 431:10A-103, and reciprocal beneficiary family coverage, as defined in section 431:10A-601, the insurer shall be required:
(1) To permit the parent to enroll, under the family coverage or reciprocal beneficiary family coverage, a child who is otherwise eligible for the coverage without regard to any enrollment season restrictions;
(2) If the parent is enrolled but fails to make application to obtain coverage for the child, to enroll the child under family coverage or reciprocal beneficiary family coverage upon application of the child's other parent, the state agency administering the medicaid program, or the state agency administering the child support enforcement program; and
(3) Not to disenroll (or eliminate coverage of) the child unless the insurer is provided satisfactory written evidence that:
(A) The court or administrative order is no longer in effect; or
(B) The child is or will be enrolled in comparable health coverage through another insurer that will take effect not later than the effective date of disenrollment.
(d) An insurer may not impose requirements on a state agency, which has been assigned the rights of an individual eligible for medical assistance under medicaid and covered for health benefits from the insurer, that are different from requirements applicable to an agent or assignee of any other individual so covered. [L 1995, c 83, pt of §2; am L 1997, c 383, §8; am L 2004, c 122, §81]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431L. Medicaid-Related Mandates › 431L-4 Employer obligations.

§431L-4 Employer obligations.
Where a parent is required by a court or administrative order to provide health coverage, which is available through an employer doing business in this State, the employer is required:
(1) To permit the parent to enroll under family coverage, as defined in section 431:10A-103 or reciprocal beneficiary family coverage, as defined in section 431:10A-601, any child who is otherwise eligible for coverage without regard to any enrollment season restrictions;
(2) If the parent is enrolled but fails to make application to obtain coverage of the child, to enroll the child under family coverage or reciprocal beneficiary family coverage upon application by the child's other parent, by the state agency administering the medicaid program, or by the state agency administering the child support enforcement program;
(3) Not to disenroll (or eliminate coverage of) any such child unless the employer is provided satisfactory written evidence that:
(A) The court or administrative order is no longer in effect;
(B) The child is or will be enrolled in comparable coverage which will take effect no later than the effective date of disenrollment; or
(C) The employer has eliminated family health coverage or reciprocal beneficiary family coverage for all of its employees; and
(4) To withhold from the employee's compensation the employee's share (if any) of premiums for health coverage and to pay this amount to the insurer. [L 1995, c 83, pt of §2; am L 1997, c 383, §9]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431L. Medicaid-Related Mandates › 431L-5 Recoupment of amounts spent on child medical care.

§431L-5 Recoupment of amounts spent on child medical care.
The department of the attorney general may garnish the wages, salary, or other employment income of, and withhold amounts from state tax refunds to, any person who:
(1) Is required by court or administrative order to provide coverage of the cost of health services to a child eligible for medical assistance under medicaid; and
(2) Has received payment from a third party for the costs of such services but has not used the payments to reimburse either the other parent or guardian of the child or the provider of the services,
to the extent necessary to reimburse the department of human services for its costs, but claims for current and past due child support shall take priority over these claims. [L 1995, c 83, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431L. Medicaid-Related Mandates › 431L-6 Requirements for coverage of an adopted child.

§431L-6 Requirements for coverage of an adopted child.
(a) In any case in which a group health plan provides coverage for dependent children of participants or beneficiaries, the plan shall provide benefits to dependent children placed with participants or beneficiaries for adoption under the same terms and conditions as apply to the natural, dependent children of the participants and beneficiaries, irrespective of whether the adoption has become final.
(b) A group health plan may not restrict coverage under the plan of any dependent child adopted by a participant or beneficiary, or placed with a participant or beneficiary for adoption, solely on the basis of a preexisting condition of the child at the time that the child would otherwise become eligible for coverage under the plan, if the adoption or placement for adoption occurs while the participant or beneficiary is eligible for coverage under the plan.
(c) As used in this section:
"Child" means, in connection with any adoption, or placement for adoption, of the child, an individual who has not attained the age of eighteen as of the date of such adoption or placement for adoption.
"Placement for adoption" means the assumption and retention by a person of a legal obligation for total or partial support of a child in anticipation of the adoption of the child. The child's placement with a person terminates upon the termination of such legal obligation. [L 1995, c 83, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431M. Mental Health and Alcohol and Substance Use Disorder Treatment Insurance Benefits › 431M-2 Policy coverage.

§431M-2
Policy coverage
. (a) All individual and group accident and health or sickness insurance policies issued in this State, individual or group hospital or medical service plan contracts, and nonprofit mutual benefit society, fraternal benefit society, and health maintenance organization health plan contracts shall include within their hospital and medical coverage the benefits of alcohol use disorder, substance use disorder, and mental health treatment services, including services for alcohol dependence and drug dependence, except that this section shall not apply to insurance policies that are issued solely for single diseases, or otherwise limited, specialized coverage.
(b) The policies and contracts set forth in subsection (a) shall not impose any financial requirements or treatment limitations on mental health or substance use disorder benefits that are more restrictive than the predominant financial requirements and treatment limitations, either quantitative or nonquantitative, imposed on medical and surgical benefits in accordance with the Mental Health Parity and Addiction Equity Act of 2008. [L 1988, c 202, pt of §1, §3; am L 1994, c 111, §4; am L 1998, c 78, §3; am L 2002, c 239, §1; am L 2003, c 212, §120; am L 2004, c 122, §82; am L 2014, c 186, §10]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431M. Mental Health and Alcohol and Substance Use Disorder Treatment Insurance Benefits › 431M-6 Rules.

§431M-6
Rules
. The insurance commissioner, after consultation with all interested parties including the director of health, the Hawaii medical board, the board of psychology, and representatives of insurance carriers, nonprofit mutual benefit societies, health maintenance organizations, public and private providers, consumers, employers, and labor organizations shall adopt rules pursuant to chapter 91 as are deemed necessary for the effective implementation and operation of this chapter. The rules shall include criteria and guidelines to be used in determining the appropriateness and medical or psychological necessity of services covered under this chapter, including the appropriate level of care or place of treatment and the number or quantity of services, and shall include an appeals process.
The director of health shall also adopt rules pursuant to chapter 91 as are deemed necessary for the implementation and operation of this chapter. The rules shall provide certification standards that:
(1) Reflect quality of care; and
(2) Do not compromise the quality of care. [L 1988, c 202, pt of §1, §3; am L 1991, c 90, §2; am L 1994, c 111, §4; am L 1998, c 78, §3; am L 2002, c 239, §1; am L 2004, c 122, §83; am L 2008, c 9, §3; am L 2014, c 186, §12]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431M. Mental Health and Alcohol and Substance Use Disorder Treatment Insurance Benefits › 431M-7 Preservation of certain benefits.

§431M-7
Preservation of certain benefits
. Nothing in this chapter shall serve to prevent the offering or acceptance of benefits required by this chapter. [L 1988, c 202, pt of §1, §3; am L 1994, c 111, §4; am L 1998, c 78, §3; am L 2002, c 239, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431N. State Health Insurance Program Act › 431N-1 Findings and purpose.

§431N-1
Findings and purpose.
(a) The legislature finds that despite the fact that Hawaii has the only statutorily mandated prepaid health care program in the country, as well as a broad-based medicaid program which provides an array of medical benefits to Hawaii's lowest income level residents, there remain in the State uninsured "gap group individuals". Available statistics consistently reveal that an estimated five per cent of the civilian population of this State, or 50,000 individuals, lack any form of medical insurance whatsoever and are therefore limited in access to medical care.
(b) These "gap group individuals" are characterized by one or more of the following conditions or factors contributing to lack of insurance or "medical indigency":
(1) They have too much income or too many assets to qualify for medicaid, but too little to afford private insurance;
(2) They do not qualify for prepaid health care insurance coverage through employment;
(3) They choose not to obtain health insurance; or
(4) They are dependents, primarily children of insureds who are not covered by their parent's, guardian's, or spouse's policies.
(c) The legislature further finds that it is a matter of compelling public interest to provide for the health and well-being of all the people of this State. This is also consistent with the health provisions of the Hawaii State Planning Act as set forth in section 226-20(a)(1), which establish as an objective the "fulfillment of basic individual health needs of the general public." This objective is construed to include access to basic health insurance coverage. To responsibly carry out this objective, it is therefore appropriate that the legislature use innovative means to ensure that all residents, regardless of age, income, employment status, or any other factor, have access to health insurance coverage which will provide basic medical services necessary to sustain a healthy life.
(d) The purpose of this chapter is to establish a program within the department of health, funded through legislative appropriations, to ensure basic health insurance coverage is available for Hawaii residents who are medically uninsured and who are defined in section 431N-2 as "gap group individuals". [L 1989, c 378, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431N. State Health Insurance Program Act › 431N-2 Definitions.

§431N-2
Definitions.
As used in this chapter unless otherwise indicated by the context:
"Gap group individuals" means medically uninsured persons who are residents of the State.
"Health care contractor" means any medical group or organization which undertakes, under a prepaid health care program, to provide health care, or any nonprofit organization or insurer who undertakes, under a prepaid health care program, to defray or reimburse in whole or part, the expenses of health care.
"Health care coverage" means contractually arranged medical, personal, or other services, including preventive services, education, case management, and outreach, provided to an eligible member.
"Medical indigence" means the status of a person who is uninsured or lacks medical insurance. [L 1989, c 378, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431N. State Health Insurance Program Act › 431N-3 State health insurance program established.

§431N-3
State health insurance program established.
There is established within the department of health the state health insurance program whose goals shall be to:
(1) Subsidize health care coverage for gap group individuals, including but not necessarily limited to outpatient primary and preventive care;
(2) Encourage the uninsured who can afford to participate in existing health plans to seek that coverage;
(3) Discourage individuals who are already adequately insured from seeking benefits under the state health insurance program;
(4) Assure that those persons who have the ability to pay for all or part of their coverage be appropriately assessed by the contractors on a sliding fee scale basis; and
(5) Ensure that the state health insurance program is affordable to gap group individuals.
The program shall be funded by legislative appropriations made to the department of health. [L 1989, c 378, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431N. State Health Insurance Program Act › 431N-4 Transfer of funds.

§431N-4
Transfer of funds.
The department of health shall have the authority to utilize funds appropriated under this chapter to directly purchase services in accordance with chapter 103F when it is determined that such a purchase is more effective and cost efficient in meeting the goals of this chapter. The department of health shall also have the authority to transfer funds appropriated under this chapter to the department of human services. The department of human services may receive and apply such funds for the purpose of maximizing medical care services to gap group individuals under the medicaid program contained in the medicaid state plan. The departments of health and human services shall develop and implement an interagency working agreement necessary to carry out the purpose of this section. [L 1989, c 378, pt of §1; am L 1991, c 335, §14; am L 1997, c 190, §6]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431N. State Health Insurance Program Act › 431N-5 Rulemaking authority.

§431N-5
Rulemaking authority.
The director of health shall adopt rules in accordance with chapter 91 which are necessary to carry out this chapter. The rules shall include, but need not be limited to:
(1) Establishment of guidelines for the purchase of health care coverage from health care contractors by the department;
(2) Establishment of specific health care services to be covered, limited, and excluded by the program, including preventive services, outreach, and education strategies designed to reach gap group individuals;
(3) Establishment of eligibility requirements for participation in the program;
(4) Development and implementation of an identification and notification process for eligible program participants;
(5) Establishment of a payment schedule based on the person's ability to pay;
(6) Establishment of program participation criteria for health care contractors;
(7) Establishment of monitoring and evaluative guidelines for the program;
(8) Establishment of appeal procedures for denial of eligibility, disqualification from program participation, assessment of civil penalties, or other negative action; and
(9) Establishment of procedures to exclude or remove from the program persons who drop individual or group coverage to obtain insurance. [L 1989, c 378, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431N. State Health Insurance Program Act › 431N-6 Reporting, continued funding.

§431N-6
Reporting, continued funding.
The department of health shall report to the legislature on or about October 1, 1989, on the progress made in implementation of this chapter, including:
(1) Establishment of an advisory committee to review: the scope of the work to be done by a consultant, the input from the committee and the community to the consultant, and the schedule of work of the advisory committee;
(2) Final scope of work for the consultant, selection of the consultant, and the consultant's workplan;
(3) Involvement of the departments of labor and industrial relations, human services, and other departments needed to successfully develop the program;
(4) Required data collection efforts to successfully develop the program.
The department of health, in collaboration with the health care contractors, shall submit reports to the legislature and the governor no later than twenty days prior to the convening of each and every legislative session regarding program activities and expenditures, needed resources, participant demographics, evaluations, and such other information as may be necessary to determine the usefulness of and continued need for the state health insurance program.
The purchase of insurance shall not proceed without the formal approval of the governor and a review by the legislature during the 1990 regular session. Implementation is predicated upon the successful completion of the consultant's reports and findings. The legislature, by concurrent resolution, may opt to withhold funding appropriated for implementation if not satisfied with the plan, provided that such a concurrent resolution must be passed within thirty days after completion of the implementation plan or March 1, 1990, whichever occurs last. [L 1989, c 378, pt of §1; am L 1993, c 6, §21]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431N. State Health Insurance Program Act › 431N-7 Violation, penalty.

§431N-7
Violation, penalty.
Any person who violates this chapter or any rule adopted by the department of health pursuant to this chapter may be permanently disqualified from participation in the program, required to reimburse any benefits wrongfully obtained, and shall be fined not more than $500. Any action taken to impose or collect the penalty provided for in this section may be considered a civil action. [L 1989, c 378, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431N. State Health Insurance Program Act › 431N-8 Severability.

§431N-8
Severability.
If any provision of this chapter, or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. [L 1989, c 378, pt of §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-2 Establishment of Hawaii hurricane relief fund.

§431P-2
Establishment of Hawaii hurricane relief fund.
There shall be a Hawaii hurricane relief fund to be placed within the department of commerce and consumer affairs for administrative purposes. The fund shall be a public body and a body corporate and politic. [L 1993, c 339, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-3 Board of directors.

§431P-3
Board of directors.
(a) The board of directors of the fund shall consist of the insurance commissioner as an ex officio voting member and six members appointed by the governor in accordance with section 26-34. The board shall be the policy making body of the fund. As such, the board shall be responsible for establishing policies for the administration and operation of the fund and the performance of other duties and functions assigned to the fund.
(b) Two members shall, by and with the advice and consent of the senate, be appointed by the governor for a term of four years; provided that of the initial appointees, one shall be appointed for a two-year term. A vacancy on the authority of a seat subject to this subsection shall be filled in accordance with Article V, section 6, of the Constitution of the State of Hawaii.
(c) Two members shall, by and with the advice and consent of the senate, be appointed by the governor from a list of nominations submitted by the president of the senate. The members appointed from a list of nominations of the president of the senate shall serve for a term of four years; provided that of the initial appointees, one shall be appointed for a two-year term.
(d) Two members shall, by and with the advice and consent of the senate, be appointed by the governor from a list of nominations submitted by the speaker of the house of representatives. The members appointed from a list of nominations of the speaker of the house of representatives shall serve for a term of four years; provided that of the initial appointees, one shall be appointed for a two-year term.
(e) The governor shall select a chairperson and vice-chairperson from among the members.
(f) The board shall meet as often as necessary to formulate and implement strategies and plans of operation in furtherance of this chapter. Upon its appointment, the board shall adopt an interim plan of operation within ninety days.
(g) The appointed directors shall receive no compensation for services, but shall be entitled to reimbursement of necessary expenses, including travel expenses, incurred in the performance of their duties.
(h) The board may appoint, not subject to chapter 76, an executive director of the fund whose salary shall be set by the board. The board may employ, not subject to chapter 76, technical experts and officers, agents, and employees, permanent or temporary, as required. The board may also contract with persons, not subject to chapters 76 and 78 when in the determination of the board, the services to be performed are unique and essential to the execution of the functions of the fund. [L 1993, c 339, pt of §2; am L 1998, c 106, §3; am L 2000, c 253, §150; am L 2005, c 22, §29]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-4 Planning and assessment functions of the fund; discretion to provide insurance.

§431P-4
Planning and assessment functions of the fund; discretion to provide insurance.
(a) The fund shall be responsible for monitoring the availability of property insurance, including insurance for covered events, in this State. If at any time the board determines, in its sole discretion, that the private insurance market is not making such insurance reasonably available to consumers in this State, the fund may offer policies of hurricane property insurance for sale in accordance with this chapter.
(b) Nothing in subsection (a) shall prohibit the board from exercising its powers to develop plans and procedures for the operation and management of the fund without regard to the determination of the board as to the availability of insurance in the private market. [L 1993, c 339, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-5.5 Accumulation of $500,000,000 in funds and commitments.

§431P-5.5 Accumulation of $500,000,000 in funds and commitments.
(a) Upon written confirmation from the insurance commissioner that the director of finance has secured $500,000,000, in the aggregate, in the form of:
(1) Commitments from either the federal government or an agency of the federal government or a financial institution;
(2) Revenue bonds other than those issued or to be issued in response to the occurrence of a covered event; or
(3) A combination of the commitments or bonds;
the Hawaii hurricane relief fund shall:
(1) Control or freeze rates; and
(2) Continue accumulating premiums from policies of hurricane property insurance and the special mortgage recording fee, net of any reinsurance payments, operating expenses and funds necessary for the development of a comprehensive loss reduction plan.
(b) When the balance of the net moneys accumulated totals $500,000,000, the Hawaii hurricane relief fund may notify the insurance commissioner of that fact. The insurance commissioner, in turn, may order, following the receipt of the notice, a reduction in the rates for policies of hurricane property insurance.
(c) In the event of a loss from a covered event, the net moneys accumulated shall be used to settle claims and pay current and ongoing expenses of the Hawaii hurricane relief fund. The net accumulated moneys, commitments, and bonds described in subsection (a)(2) shall be used only in the event losses from a covered event exceed the assessment pursuant to section 431P-5(b)(8)(B).
(d) In the event the balance of the net accumulated moneys falls below $400,000,000, the Hawaii hurricane relief fund shall establish rates, subject to the approval of the insurance commissioner, necessary to replenish the account balance to $500,000,000 as promptly as reasonably practicable. The director of finance shall seek to arrange additional commitments whenever the account balance falls below $400,000,000.
(e) The Hawaii hurricane relief fund shall be exempt from paying all taxes and fees levied by the State on other insurers. [L Sp 1995, c 32, §2; am L 2000, c 76, §1]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-6 Advisory committee.

§431P-6
Advisory committee.
To assist it in implementing this chapter the fund may appoint an advisory committee consisting of:
(1) Not less than one individual who is employed or trained as a meteorologist and possesses knowledge of the history, trends, and nature of windstorms in the Pacific Ocean;
(2) Not less than one individual who is a member of the American Academy of Actuaries; and
(3) Not less than one individual who is a structural engineer licensed to practice in the State and is knowledgeable about local community building codes.
The fund may establish additional advisory committees as it may deem necessary in furtherance of this chapter. [L 1993, c 339, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-7 Plan of operation.

§431P-7
Plan of operation.
(a) The fund shall adopt a plan of operation and a manual of rules and rates necessary or suitable to ensure both the solvency and the reasonable and equitable administration of the fund. The adoption of or amendments to the plan of operation and manual of rules and rates shall not be subject to chapter 91, except that the policy forms for policies of hurricane property insurance shall be adopted pursuant to chapter 91.
(b) If the fund fails to adopt a plan of operation, or the fund fails to adopt amendments to the plan of operation, the commissioner shall adopt a plan of operation or make amendments necessary to carry out the purposes of this chapter. Any plan of operation, or amendment, adopted by rule of the commissioner, shall continue in full force and effect until the rule is superseded by a plan of operation, or amendment, adopted by a majority vote of all members of the fund's board, and approved by the commissioner.
(c) The plan of operation shall:
(1) Establish procedures for performance of all powers and duties of the fund;
(2) Establish procedures for providing notice to all persons with interests insurable by the fund in the State of the type of insurance available from the fund in the event the fund offers insurance;
(3) Provide for and adopt all necessary forms, including insurance policies to be used by and on behalf of the fund, for use by the fund and servicing facilities;
(4) Adopt actuarially sound rates, based on reasonable assumptions relative to expectations of hurricane frequency and severity, to be charged for insurance provided by the fund, in accordance with article 14 of chapter 431;
(5) Publish manuals of rules, rates, and rating and classification plans, which shall address mandatory deductibles, limits of coverage, and the classification of risks and rate modifications based on the exposure of insureds;
(6) Establish procedures for receiving and servicing applications to the fund;
(7) Establish procedures for processing and maintaining records of the fund relating to its financial transactions, its agents, its employees, its operations, and all transactions with any servicing facility;
(8) Establish procedures for the collection and remittance of the premiums and return of unearned premiums where applicable;
(9) Establish procedures for the payment of valid claims;
(10) Establish procedures for prorating available funds pursuant to section 431P-15;
(11) Establish procedures for obtaining reinsurance;
(12) Establish procedures to borrow funds; and
(13) Develop a plan for the investment of moneys held by the fund subject to the limitations in article 6 of chapter 431. [L 1993, c 339, pt of §2; am L Sp 1995, c 17, §3]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-8 Annual statements.

§431P-8
Annual statements.
(a) The fund shall submit to the commissioner each year, not later than one hundred twenty days after the end of the fund's fiscal year, a financial report in a form approved by the commissioner.
(b) The commissioner may require other reports concerning risks insured by the fund as the commissioner deems appropriate. [L 1993, c 339, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-9 Powers of the commissioner.

§431P-9
Powers of the commissioner.
(a) For the purpose of ascertaining the fund's condition or compliance with this chapter, the commissioner shall examine the accounts, records, documents, and transactions of the fund at least once every three years commencing at the time the fund starts issuing policies of hurricane property insurance or more often if the commissioner deems advisable. The fund shall pay all reasonable and actually incurred expenses of the examination in accordance with section 431:2-306(b); provided that a detailed estimate of the expenses to be incurred shall be approved by the board prior to the examination. In the event the actual expenses incurred are in excess of ten per cent of the estimate, the commissioner shall communicate in writing to the board the reason for the excess expenses.
(b) The commissioner may exercise all of the commissioner's powers provided by law in the supervision and regulation of the fund, any servicing facility, and any other person or entity subject to the jurisdiction of the commissioner. [L 1993, c 339, pt of §2; am L Sp 1995, c 17, §4]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-10 Coverage available from the fund; deductible.

§431P-10
Coverage available from the fund; deductible.
(a) Policies issued by the fund shall provide a maximum aggregate coverage of up to $750,000 per risk on real property of one to four units used for residential purposes and $500,000 per risk for real property used for business, commercial, or industrial purposes and shall provide for a mandatory deductible. The deductible amount for residential property policies shall be the greater of $1,000 or one per cent of the insured value or the greater of $2,000 or two per cent of the insured value; provided that the board may establish higher deductible limits. The deductible amount for commercial property policies shall be the greater of $5,000 or five per cent of the insured value or an amount equivalent to all the other perils deductible of the companion policy; provided that the board may establish higher deductible limits.
(b) Insurers seeking to provide multi-peril coverage for residential property, including multi-peril coverage of the hurricane peril, subject to the fund's program for incentives and credits, shall submit to the commissioner a written request for permission to write the coverage; provided that in the absence of such authorization, no other policy of residential property insurance or endorsement to a policy of residential property insurance on eligible residential property located in this State shall be issued to provide insurance for damages or losses caused by a covered event if such coverage is less than that offered by the fund. If multi-peril coverage on commercial property is no longer being offered by the fund, any multi-peril coverage on commercial property offered by an insurer shall qualify as a comparable coverage under section 431P-5(b)(8)(A). Multi-peril coverage on residential property which [includes] coverage for hurricane losses offered by an insurer shall qualify as a comparable coverage under section 431P-5(b)(8)(A). [L 1993, c 339, pt of §2; am L Sp 1995, c 17, §5; am L 2000, c 153, §1; am L 2016, c 141, §14]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-11 Underlying policy required; hurricane coverage shall be provided.

§431P-11
Underlying policy required; hurricane coverage shall be provided.
(a) Any eligible property for which coverage is sought from the fund shall already be insured by an underlying policy of property insurance as defined in section 431:1-206 or article 21 of chapter 431 but excluding the covered event. Every underlying policy of property insurance provided by an unauthorized insurer shall be subject to the procedures, guidelines and surcharges as provided in the plan of operation.
(b) The fund shall not deny any application for hurricane property insurance on any property eligible under subsection (a).
(c) The fund shall renew any policy provided payment of the applicable renewal premium is received by the fund on or before the expiration date stated in the policy. The fund may nonrenew a policy on the grounds the property is no longer covered by a companion policy. The policy issued by the fund shall not provide coverage in the event that there is no companion policy at the time of loss. In such case, any unearned premiums shall be returned to the policyholder on a pro rata basis. Limits of coverage under a policy issued by the fund shall not exceed the limits of comparable coverages for fire and windstorm under the companion policy. The statute of limitations for actions under a policy of hurricane property insurance shall be one year. [L 1993, c 339, pt of §2; am L 1998, c 106, §5]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-12 Mitigation.

§431P-12
Mitigation.
The fund shall develop a comprehensive loss reduction plan for the hurricane peril. The plan shall include standards for new residential and commercial structures and separate standards for existing residential and commercial structures. The plan shall provide a timetable for implementation of mandatory loss mitigation measures for both new and existing structures. [L 1993, c 339, pt of §2]
2023 Hawaii Revised Statutes › Title 24. Insurance › 431P. Hawaii Hurricane Relief Fund › 431P-13 Appeals.

§431P-13
Appeals.
(a) Any applicant or policyholder adversely affected by a decision of the fund shall have the right to appeal to the fund's board within thirty days after the decision. The application for an appeal shall specify how the person making the appeal was aggrieved and the grounds upon which relief is demanded. The decision of the board shall be deemed final.
(b) Any final action, decision, or order of the board under this chapter shall be subject to judicial review by the circuit court. [L 1993, c 339, pt of §2]