§431:15-101 - Construction and purpose. - Hawaii Statutes

ARTICLE 15

INSURERS SUPERVISION, REHABILITATION AND

LIQUIDATION

 

Case Notes

 

  Under §§431:15-310 and 431:15-313, the commissioner has exclusive standing under this article to assert claims arising out of the liquidation or rehabilitation of an insurance company on behalf of not only the insolvent insurer, but also its policyholders, creditors, and all other interested parties.  89 H. 427, 974 P.2d 1017.

  This article applies to mutual benefit societies.  99 H. 53, 52 P.3d 823.

 

PART I.  GENERAL PROVISIONS

 

     §431:15-101  Construction and purpose.  (a)  This article shall be cited as the Insurers Supervision, Rehabilitation and Liquidation Act.

     (b)  This article shall not be interpreted to limit the powers granted the commissioner by other provisions in this code.

     (c)  This article shall be liberally construed to effect the purpose stated in subsection (d).

     (d)  The purpose of this article is the protection of the interests of insureds, claimants, creditors, and the public generally, with minimum interference with the normal prerogatives of the owners and managers of insurers, through:

     (1)  Early detection of any potentially dangerous condition in an insurer, and prompt application of appropriate corrective measures;

     (2)  Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry;

     (3)  Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation;

     (4)  Equitable apportionment of any unavoidable loss;

     (5)  Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process, and by extending the scope of personal jurisdiction over debtors of the insurer outside this State; and

     (6)  Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business. [L 1987, c 347, pt of §2]