§432:1-104  Definitions.  For the
purposes of this article:



(1)  Commissioner means the insurance commissioner of
the State of Hawaii.



(2)  Mutual benefit society is any corporation,
unincorporated association, society, or entity:



(A)  Organized and carried on for the primary
benefit of its members and their beneficiaries and not for profit, and:



(i)  Making provision for the payment of
benefits in case of sickness, disability, or death of its members, or
disability, or death of its members' spouses or reciprocal beneficiaries or
children, or



(ii)  Making provision for the payment of any
other benefits to or for its members,



whether or not the amount of the
benefits is fixed or rests in the discretion of the society, its officers, or
any other person or persons; and the fund from which the payment of the
benefits shall be defrayed is derived from assessments or dues collected from
its members, and the payment of death benefits is made to the families
including reciprocal beneficiaries, heirs, blood relatives, or persons named by
its members as their beneficiaries; or



(B)  Organized and carried on for any purpose,
which:



(i)  Regularly requires money to be paid to it
by its members, whether the money be in the form of dues, subscriptions,
receipts, contributions, assessments or otherwise, and



(ii)  Provides for the payment of any benefit or
benefits or the payment of any money or the delivery of anything of value to
its members or their relatives including reciprocal beneficiaries, or to any
person or persons named by its members as their beneficiaries, or to any class
of persons which includes or may include its members,



whether or not the amount or value of
the benefit, benefits, money, or thing of value is fixed, or rests in the
discretion of the society, its officers, or any other person or persons; or



(C)  Organized and carried on for any purpose,
whose requirements and provisions although not identical with, are determined
by the commissioner to be substantially similar to, those enumerated in
subparagraphs (A) and (B).



Participating in a prepaid legal service
plan subject to chapter 488 shall not in itself make a corporation,
unincorporated association, society, or entity a mutual benefit society and
subject to this article. [L 1987, c 347, pt of §2; am L 1993, c 350, §18; am L
1997, c 383, §60]



 



Attorney General Opinions



 



  Effect of amendment to section [by L 1997, c 383] was to
allow, but not require, a mutual benefit society to make provision for payment
of benefits to reciprocal beneficiaries.  Att. Gen. Op. 97-5.