HRS §431:15-308
How long insurance policies stay active after liquidation
When an insurance company is liquidated, most policies stay active for a short time, but no longer than 30 days. Life, health, and annuity policies follow special rules set by guaranty funds. If a policy is not covered by a guaranty fund, it ends under the same 30-day rule.
The statute, as written — Continuance of coverage
(a) All policies, other than life or accident and health or sickness insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of: (1) A period of thirty days from the date of entry of the liquidation orders; (2) The expiration of the policy coverage; (3) The date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy; or (4) The liquidator has effected a transfer of the policy obligation pursuant to section 431:15-310(a)(8). (b) An order of liquidation under section 431:15-307(a) shall terminate coverages at the time specified in subsection (a) for purposes of any other statute. (c) Policies of life or accident and health or sickness insurance or annuities shall continue in force for such period and under such terms as is provided for by any applicable guaranty fund or association, or foreign guaranty fund or association. Policies of life or accident and health or sickness insurance or annuities or any period or coverage of such policies not covered by a guaranty fund or association or foreign guaranty fund or association shall terminate under subsections (a) and (b).
Sections this one refers to
§431:15-307 What happens when an insurance company is ordered to close
§431:15-310 What the liquidator can do when an insurance company is shut down
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