§431P-5.5  Accumulation of $500,000,000 infunds and commitments.  (a)  Upon written confirmation from the insurancecommissioner that the director of finance has secured $500,000,000, in theaggregate, in the form of:

(1)  Commitments from either the federal government oran agency of the federal government or a financial institution;

(2)  Revenue bonds other than those issued or to beissued 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 ofhurricane property insurance and the special mortgage recording fee, net of anyreinsurance payments, operating expenses and funds necessary for thedevelopment of a comprehensive loss reduction plan.

(b)  When the balance of the net moneysaccumulated totals $500,000,000, the Hawaii hurricane relief fund may notifythe insurance commissioner of that fact.  The insurance commissioner, in turn, mayorder, following the receipt of the notice, a reduction in the rates forpolicies of hurricane property insurance.

(c)  In the event of a loss from a coveredevent, the net moneys accumulated shall be used to settle claims and paycurrent and ongoing expenses of the Hawaii hurricane relief fund.  The netaccumulated moneys, commitments, and bonds described in subsection (a)(2) shallbe used only in the event losses from a covered event exceed the assessmentpursuant to section 431P-5(b)(8)(B).

(d)  In the event the balance of the netaccumulated moneys falls below $400,000,000, the Hawaii hurricane relief fundshall establish rates, subject to the approval of the insurance commissioner,necessary to replenish the account balance to $500,000,000 as promptly asreasonably practicable.  The director of finance shall seek to arrangeadditional commitments whenever the account balance falls below $400,000,000.

(e)  The Hawaii hurricane relief fund shall beexempt from paying all taxes and fees levied by the State on other insurers. [LSp 1995, c 32, §2; am L 2000, c 76, §1]