§435C-3  Joint underwriting plan,
establishment.  (a)  A joint underwriting plan is established, consisting
of all insurers authorized to write and engaged in writing casualty insurance
in this State on a direct basis.  Each insurer shall be a member of the plan
and shall maintain membership as a condition of its licensure to transact such
insurance in this State.  The purpose of the plan shall be to provide medical
malpractice insurance on a self-supporting basis.  The plan shall be the
exclusive agency through which medical malpractice insurance may be written in
this State on a primary basis for physicians and hospitals.



(b)  The plan shall, pursuant to the provisions
of this chapter and the plan of operation with respect to medical malpractice
insurance, have the power on behalf of its members:



(1)  To issue, or to cause to be issued policies of
insurance to applicants, including incidental coverages and subject to limits
as specified in the plan of operation but not to exceed $100,000 for each
claimant under one policy in any one year;



(2)  To appoint service companies to underwrite such
insurance and to adjust and pay losses with respect thereto;



(3)  To assume reinsurance from its members; and



(4)  To cede reinsurance.



  (c)(1)  The commissioner shall, after consultation with
the joint underwriting plan, representatives of the public, the Hawaii Medical
Association and other affected individuals and organizations, promulgate a plan
of operation consistent with the provisions of this chapter within sixty days
after the creation of the plan.  The plan of operation shall become effective
and operational upon order of the insurance commissioner.



(2)  The plan of operation shall provide for economic,
fair and nondiscriminatory administration and for the prompt and efficient
provision of medical malpractice insurance, and shall contain other provisions
including, but not limited to, preliminary assessment of all members for
initial expenses necessary to commence operation, establishment of necessary
facilities, management of the plan, assessment of members to defray losses and
expenses, commission arrangements, reasonable and objective underwriting
standards, acceptance and cession of reinsurance, appointment of servicing
carriers and standards, and procedures for determining amounts of insurance to
be provided by the plan.



(3)  The plan of operation shall provide that any
profit achieved by the plan be added to the reserves of the plan or returned to
the policyholders as a dividend.



(4)  Amendments to the plan of operation may be made
by the directors of the plan, subject to the approval of the insurance
commissioner, or shall be made at the direction of the insurance commissioner.
[L 1975, c 161, pt of §1; am L 1976, c 219, §5; am L 1984, c 232, §2]