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

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

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vehicle insurance policy, but in no event less than $300,000 andshall provide that the cash or securities shall not be withdrawn until twoyears have elapsed from the last day the applicant was self-insured, unless thecommissioner has given prior written consent; and

(2)  Furnish the commissioner satisfactory proof ofthe applicant's solvency and financial ability to timely pay benefits andamounts 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 asa self-insurer. [L 2000, c 24, pt of §3; am L 2004, c 122, §42]