§431:14A-103  Hawaii employers' mutualinsurance company, established.  (a)  The Hawaii employers' mutualinsurance company is established as an independent corporation to provideworkers' compensation insurance and related services to Hawaii employers.  Thecompany may be reorganized as a nonprofit corporation under chapter 414D.

(b)  The company shall be organized andoperated as a domestic mutual insurance company.  The company shall complywith, unless specifically excluded, all requirements of the insurance coderegarding a domestic mutual insurance company.  The company shall not be anagency of the State.  The company or its liabilities shall not be deemed toconstitute debts or liabilities of the State of Hawaii or pledges of the fullfaith and credit of the State.  The company shall write workers' compensationinsurance policies covering Hawaii employers as required or authorized by lawand employers' liability to the same extent as any other private insurer.  Thecompany shall not write other lines of insurance, reinsurance, or excessinsurance.

(c)  The company may insure Hawaii employersagainst their liability for compensation or damages for injury or death underthe United States Longshoremen's and Harbor Workers' Compensation Act orfederal or maritime laws like any other private insurer.

(d)  The company's assets shall consist of realand personal property and shall include all premiums and other moneys paid tothe company, all property, and other income acquired, earned, or otherwisegained by the use of premiums and other moneys paid to the company by deposits,investments, exchanges, and other transactions.  The company's assets shall bethe sole property of the company and shall be used exclusively by the companyfor the operation and obligations of the company.

(e)  Notwithstanding any other law to thecontrary, the company shall be excluded from the surplus requirements ofdomestic mutual insurers from January 1, 1997, through December 31, 2007.  Thecompany is also excluded during this time period from any assessments by theHawaii hurricane relief fund otherwise required by section 431P-5(b)(8);provided that the exclusion shall apply to the first $25,000,000 of writtenpremiums in each calendar year; and provided further that annual writtenpremiums in excess of $25,000,000 shall be assessed in accordance with section431P-5(b)(8).

(f)  The company is exempt from participation,and shall not join, contribute financially to, nor be entitled to theprotection of, any plan, association, guaranty, insolvency fund, or educationand training fund authorized or required by this chapter.  Notwithstanding theforegoing exemptions, beginning January 1, 2008, the company shall participatein the property and liability insurance guaranty association, pursuant tosections 431:16-101 to 431:16-117; provided that the company shall meet thesurplus requirements applicable to all other domestic insurers under chapter431 effective January 1, 2008.

(g)  On or after January 1, 1997, the companyshall provide workers' compensation coverage to Hawaii employers otherwiseentitled to coverage but not able to or not electing to purchase coverage inthe voluntary insurance market, and not authorized, either individually or as apart of a group, to self-insure.  An authorized self-insured is eligible forcoverage upon termination of self-insurance. [L 1996, c 261, pt of §2; am L1997, c 300, §§3, 4; am L 1998, c 252, §4; am L 1999, c 18, §13; am L 2002, c40, §70; am L 2004, c 122, §64]