HRS §431:4-323
When the state must cancel an insurer's no-assessment power
The insurance commissioner must cancel a domestic mutual insurer's ability to remove its members' contingent liability if the insurer's assets fall below what is required or if the insurer's directors and members ask for the cancellation. After cancellation, the insurer cannot issue or renew policies without adding contingent liability back.
The statute, as written — Revocation of authority
(a) The commissioner shall revoke the authority of a domestic mutual insurer to extinguish the contingent liability of its members if: (1) At any time the insurer's assets are less than the sum of its liabilities and the surplus required for such authority, or (2) The insurer, by resolution of its directors approved by its members, requests that the authority be revoked. (b) Upon revocation of such authority for any cause, the insurer shall not thereafter issue any policies without contingent liability, nor renew any policies then in force without written endorsement thereon providing for contingent liability.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.