(a) If a domiciliary liquidator has not been appointed, the commissioner may apply to the circuit court of the first judicial circuit by verified petition for an order directing the commissioner to act as conservator to conserve the property of an alien insurer not domiciled in this State or a foreign insurer on any one or more of the following grounds:

Terms Used In Hawaii Revised Statutes 431:15-401

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Domiciliary state: means the state in which an insurer is incorporated or organized, or, in the case of an alien insurer, its state of entry. See Hawaii Revised Statutes 431:15-103
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Foreign country: means any other jurisdiction not in any state. See Hawaii Revised Statutes 431:15-103
  • insolvent: means :

    (1) For an insurer issuing only assessable fire insurance policies:
    (A) The inability to pay any obligation within thirty days after it becomes payable; or
    (B) If an assessment be made within thirty days after such date, the inability to pay such obligation thirty days following the date specified in the first assessment notice issued after the date of loss pursuant to this code;
    (2) For any other insurer, that it is unable to pay its obligations when they are due, or when its admitted assets do not exceed its liabilities plus the greater of:
    (A) Any capital and surplus required by law for its organization; or
    (B) The total par or stated value of its authorized and issued capital stock; and
    (3) As to any insurer licensed to do business in this State as of July 1, 1988, who does not meet the standard established under subparagraph (B), the term insolvency or insolvent shall mean, for a period not to exceed three years from July 1, 1988, that it is unable to pay its obligations when they are due or that its admitted assets do not exceed its liabilities plus any required capital contribution ordered by the commissioner under provisions of this code. See Hawaii Revised Statutes 431:15-103
  • Insurer: means any person who has done, purports to do, is doing or is licensed to do an insurance business, and is or has been subject to the authority of, or to liquidation, rehabilitation, reorganization, supervision, or conservation by any insurance commissioner. See Hawaii Revised Statutes 431:15-103
  • Receiver: means receiver, liquidator, rehabilitator, or conservator as the context requires. See Hawaii Revised Statutes 431:15-103
  • State: means any state, district, or territory of the United States and the Panama Canal Zone. See Hawaii Revised Statutes 431:15-103
(1) Any of the grounds in § 431:15-301;
(2) That any of its property has been sequestered by official action in its domiciliary state, or in any other state;
(3) That enough of its property has been sequestered in a foreign country to give reasonable cause to fear that the insurer is or may become insolvent; or
(4) That its certificate of authority to do business in this State has been revoked or that none was ever issued, and that there are residents of this State with outstanding claims or outstanding policies.
(b) When an order is sought under subsection (a), the court may require an appropriate notice to the insurer and a hearing and may issue the order in whatever terms it considers appropriate. The filing or recording of the order with the bureau of conveyances imparts the same notice as an evidence of title.
(c) The conservator may at any time petition for and the court may grant an order under § 431:15-402 to liquidate assets of a foreign or alien insurer under conservation, or if appropriate, for an order under § 431:15-404, to be appointed ancillary receiver.
(d) The conservator may at any time petition the court for an order terminating conservation of an insurer. If the court finds that the conservation is no longer necessary, it shall order that the insurer be restored to possession of its property and the control of its business. The court may also make such finding and issue such order at any time upon motion of any interested party, but if such motion is denied all costs, including the reasonable attorney’s fee of the conservator, shall be assessed against such party.

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