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HRS §431:4-119

Refunds when an insurance company fails to start or loses its permit

If a proposed insurance company cannot finish setting up, get its license in time, or its permit is revoked, the state insurance commissioner must take money held in escrow and give it back to subscribers and applicants. The refund is reduced by any amount already used for promotion and organization costs. The company must then be dissolved.

The statute, as written — Refund upon failure to complete or qualify or upon revocation of solicitation permit

The commissioner shall withdraw all funds held in escrow and refund to subscribers or applicants all sums paid in on stock subscriptions, less that part of the sums paid in on subscriptions as has been allowed and used for promotion and organization expenses, and all sums paid in on insurance applications, and shall dissolve the proposed insurer or corporation if: (1) The proposed insurer or corporation: (A) Fails to complete its organization and obtain full payment for subscriptions and applications; and (B) Fails to secure its certificate of authority before expiration of the solicitation permit, if an insurer; or (2) The commissioner revokes the solicitation permit.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.