(a) Each member insurer shall annually recoup the assessments paid in the preceding years by the insurer under this part. The recoupment shall be recovered by means of a surcharge on premiums charged for policies for all kinds of insurance, except life, title, surety, accident and health or sickness, credit mortgage guaranty, and ocean marine. Prior to recoupment, each member insurer shall submit its plan for recoupment to the commissioner for approval. The surcharge shall be at a uniform percentage rate reasonably calculated to recoup the assessment paid by the member insurer. Any excess recovery by a member insurer shall be credited pro rata to that member insurer’s policyholders’ premiums in the succeeding year unless there has been a subsequent assessment, in which case the excess will be used to pay the amount of the subsequent assessment. If a member insurer fails to recoup the entire amount of its assessment in the first year under the procedure provided in this section, it may repeat the procedure in succeeding years until the full assessment is recouped.

Terms Used In Hawaii Revised Statutes 431:16-115

  • Association: means the Hawaii insurance guaranty association created under § 431:16-106. See Hawaii Revised Statutes 431:16-105
  • Insured: means any named insured, any additional insured, any vendor, any lessor, or any other party identified as an insured under the policy. See Hawaii Revised Statutes 431:16-105
  • Member insurer: means any person who:

    (1) Writes any kind of insurance to which this part applies under § 431:16-103, including the exchange of reciprocal or inter-insurance contracts; and

    (2) Is licensed to transact insurance in this State. See Hawaii Revised Statutes 431:16-105

  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(b) Each insurer shall provide to the Hawaii insurance guaranty association an accounting of its recoupments. The Hawaii insurance guaranty association shall compile the insurers’ accountings and submit it as part of its annual report to the commissioner.
(c) The amount of and reason for any surcharge shall be separately stated on any billing sent an insured. The surcharge shall not be considered premiums for any other purpose, including the computation of gross premium tax or the determination of producer commissions.

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