HRS §431:15-321
Reinsurer's liability in liquidation
This section says that when an insurance company is being liquidated, the liquidator can still collect the full amount owed by reinsurers, even if the company is in trouble. A reinsurer's payment to an insured or creditor only counts if the reinsurance contract directly covered that named insured.
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The statute, as written — Reinsurer's liability
The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement. Payment made directly to an insured or other creditor shall not diminish the reinsurer's obligation to the insurer's estate except when the reinsurance contract provided for direct coverage of a named insured and the payment was made in discharge of that obligation.
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