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



(b)  The company shall be organized and
operated as a domestic mutual insurance company.  The company shall comply
with, unless specifically excluded, all requirements of the insurance code
regarding a domestic mutual insurance company.  The company shall not be an
agency of the State.  The company or its liabilities shall not be deemed to
constitute debts or liabilities of the State of Hawaii or pledges of the full
faith and credit of the State.  The company shall write workers' compensation
insurance policies covering Hawaii employers as required or authorized by law
and employers' liability to the same extent as any other private insurer.  The
company shall not write other lines of insurance, reinsurance, or excess
insurance.



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



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



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



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



(g)  On or after January 1, 1997, the company
shall provide workers' compensation coverage to Hawaii employers otherwise
entitled to coverage but not able to or not electing to purchase coverage in
the voluntary insurance market, and not authorized, either individually or as a
part of a group, to self-insure.  An authorized self-insured is eligible for
coverage upon termination of self-insurance. [L 1996, c 261, pt of §2; am L
1997, c 300, §§3, 4; am L 1998, c 252, §4; am L 1999, c 18, §13; am L 2002, c
40, §70; am L 2004, c 122, §64]