§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]