HRS §431:4-314
Limit on spending for certain insurance policies
Read the official text at capitol.hawaii.gov ↗This section sets a cap on how much a domestic mutual insurer (one that can charge extra premiums) can spend on writing and managing certain property, accident/health, and casualty insurance policies. The cap is based on a percentage of net premium income plus reinsurance commissions. It applies after the insurer's first two full years of operation.
The statute, as written — Limitation on expenses incurred in writing property and casualty
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
For any calendar year after its first two full calendar years of operation, no domestic mutual insurer, other than one issuing nonassessable policies, shall incur any costs or expense in the writing or administration of property, accident and health or sickness, and casualty insurances, other than boiler and machinery or elevator, transacted by it which, exclusive of losses paid, loss adjustment expenses, investment expenses, dividends, and taxes exceeds the sum of: (1) Forty per cent of the net premium income during that year after deducting therefrom net earned reinsurance premiums for the year, plus (2) All of the reinsurance commissions received on reinsurance ceded by it.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.