HRS §435E-23
What happens if a member does not pay an assessment
If a member of the interindemnity arrangement does not pay an assessment on time, the board can end their membership if they do not pay within 30 days. After that, the member loses their initial contribution and coverage, but legal defense may continue for 10 days.
The statute, as written — Member failure to pay
In the event a participating member fails to pay any assessment when the same is due, the board of trustees may terminate such person's membership status if such failure to pay is not cured within thirty days from the date the assessment was due. Upon termination the former participating member shall not be entitled to the return of all or any part of his or her initial contribution, and the indemnity coverage shall thereupon terminate as to all claims then pending against such person and in respect to all occurrences prior to the date of such termination of membership. However, in the event the interindemnity arrangement is then providing legal defense services to such person, the interindemnity arrangement shall continue to provide those services for a period of ten days following such termination.
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