HRS §431:4-117
When a stock insurer can issue shares and forfeit unpaid subscriptions
A proposed stock insurer cannot sell shares or participation agreements until all promised payments are fully made in cash, approved investments, or other property with the commissioner's written approval, and it has a certificate of authority if it is an insurer. Installment payment contracts must allow the company to cancel the contract and keep payments if the buyer misses a payment after written notice.
The statute, as written — Issuance and forfeiture of securities
(a) No proposed stock insurer or corporation shall issue any share of stock or participation agreement until: (1) All subscriptions received under the solicitation permit have been fully paid in: (A) Cash or securities eligible for investment of funds of insurers, or (B) Other property after securing the written approval of the commissioner; and (2) A certificate of authority has been issued to it, if an insurer. (b) Every subscription contract to shares of a stock insurer or other corporation calling for payment in installments shall provide that such contracts, together with all amounts paid thereon, may be forfeited at the option of the corporation, upon failure to make good a delinquency in any installment upon not less than forty-five days notice in writing.
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