(a) After notice and opportunity for a hearing, the insurance commissioner may revoke a group’s certificate of approval if the group:

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Terms Used In Hawaii Revised Statutes 386-211

  • Compensation: means all benefits accorded by this chapter to an employee or the employee's dependents on account of a work injury as defined in this section; it includes medical and rehabilitation benefits, income and indemnity benefits in cases of disability or death, and the allowance for funeral and burial expenses. See Hawaii Revised Statutes 386-1
  • Employee: means any individual in the employment of another person. See Hawaii Revised Statutes 386-1
  • Fiduciary: A trustee, executor, or administrator.
  • Fraud: Intentional deception resulting in injury to another.
(1) Is found to be insolvent;
(2) Fails to pay any premium tax, regulatory fee or assessment, or special compensation fund assessments imposed upon it; or
(3) Fails to comply with any provision of this chapter or any rule adopted under this chapter or with any lawful order of the insurance commissioner within the time prescribed.
(b) In addition, the insurance commissioner may revoke a group’s certificate of approval if, after notice and opportunity for hearing, the insurance commissioner finds that:

(1) Any certificate of approval that was issued to the group was obtained by fraud;
(2) There was a material misrepresentation in the application for the certificate of approval; or
(3) The group or its administrator has misappropriated, converted, illegally withheld, or refused to pay over upon proper demand any moneys that belong to a member, an employee of a member, or a person otherwise entitled thereto and that have been entrusted to the group or its administrator in its fiduciary capacities.
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