HRS §431:11-112
When the state can take over an insurance company
If the insurance commissioner finds that a company broke the law and this hurt its finances so much that it might fail or become dangerous, the commissioner can take over the company's property and run its business. This follows special rules in another part of the law.
state agencies
The statute, as written — Receivership
Whenever it appears to the commissioner that any person has committed a violation of this article which so impairs the financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, creditors, shareholders, or the public, then the commissioner may proceed as provided in article 15 to take possession of the property of the domestic insurer and to conduct the business thereof.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.