HRS §431:15-306
When the state can shut down an insurance company
Read the official text at capitol.hawaii.gov ↗The insurance commissioner can ask a court to order the liquidation of an insurance company if trying to fix it first would likely cause more harm or be pointless. This can happen even if the company was already in rehabilitation.
The statute, as written — Grounds for liquidation
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
The commissioner may petition the circuit court of the first judicial circuit for an order directing the commissioner to liquidate a domestic insurer or an alien insurer domiciled in this State on any ground on which the commissioner may apply for an order of rehabilitation under section 431:15-301, whenever the commissioner believes that attempts to rehabilitate the insurer would substantially increase the risk of loss to its creditors, its policyholders or the public, or would be futile, or that rehabilitation would serve no useful purpose, whether or not there has been a prior order directing the rehabilitation of the insurer.
Sections this one refers to
§431:15-301 When the state can take over an insurance company
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.