HRS §431:15-306
When the state can shut down an insurance company
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
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
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