HRS §386-126
Employer bankruptcy does not let insurer stop paying
Every workers' compensation insurance policy must include a clause saying that if the employer goes bankrupt or is discharged from debt, the insurance company still has to pay benefits for injuries that happened while the policy was active.
employers
The statute, as written — Insolvency of employer not to release insurance carrier
Every policy and contract shall contain a provision to the effect that the insolvency or bankruptcy of the employer and the employer's discharge therein shall not relieve the insurance carrier from the payment of compensation for an injury suffered by a covered employee during the life of the policy or contract.
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