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HRS §431:4-424

How a mutual insurance company's leftover money is shared

When a Hawaii-based reciprocal insurer shuts down, after paying all debts, policy claims, and returning certain surplus contributions and deposits, the remaining money goes to its subscribers. Only subscribers from the last twelve months get a share, based on a formula the insurance commissioner approved.

The statute, as written — Subscriber's share of assets

Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions to its surplus made as provided in section 431:4-422, and the return of any unused deposits, savings, or credits, shall be distributed to its subscribers who were such within the twelve months prior to such formula as may have been approved by the commissioner.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§431:4-422 Who can lend money to a reciprocal insurer and when it can be paid back

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