§431:10C-602  Surety bond or deposit of
security; proof of financial ability.  An applicant for self-insurance
shall:



(1)  (A)  File with the commissioner and maintain a
bond of a surety company authorized to do business in the State, conditioned
for the payment of benefits and amounts as would be payable if the applicant
were insured under a motor vehicle insurance policy as prescribed in this
article.  The bond shall be in the form and penal sum acceptable to the
commissioner, but in no event shall be less than $300,000, and shall provide
that the bond may not be canceled or otherwise terminated until two years have
elapsed from the last day the applicant was self-insured, unless the
commissioner has given prior written consent.  It shall be undertaken and may
be enforced in the name of "Commissioner of Insurance, State of
Hawaii".  The surety company may not cancel the bond for the period of
certification; or



(B)  Deposit with the commissioner cash or
those securities as may be legally purchased for investment by insurance
companies under this chapter and evidence satisfactory to the commissioner that
there are no unsatisfied judgments against the applicant.  As used herein,
"cash" includes an irrevocable letter of credit issued by a federally
insured financial institution whose principal office is located in this State. 
Prior to the issuance of a certificate of self-insurance the securities and
cash, if appropriate, shall be registered in the name of the "Commissioner
of Insurance, State of Hawaii".  The deposit shall be held to satisfy
claims for personal injury protection benefits and liability coverage as
prescribed in this article.  The commissioner shall deposit the cash or
securities with the director of finance.  The applicant shall execute an agreement
satisfactory in form to the commissioner with respect to the deposit.  The cash
or market value of the securities deposited shall be in an amount determined by
the commissioner to afford security substantially equivalent to that afforded
under a motor vehicle insurance policy, but in no event less than $300,000 and
shall provide that the cash or securities shall not be withdrawn until two
years have elapsed from the last day the applicant was self-insured, unless the
commissioner has given prior written consent; and



(2)  Furnish the commissioner satisfactory proof of
the applicant's solvency and financial ability to timely pay benefits and
amounts as would be payable if the applicant were insured under this article. 
The commissioner shall consider the assets, liabilities, profit, loss records,
and liquidity of the applicant, the number of vehicles involved, the exposure,
and other factors appropriate to determining whether the applicant qualifies as
a self-insurer. [L 2000, c 24, pt of §3; am L 2004, c 122, §42]