Terms Used In Hawaii Revised Statutes 431K-12

• Hazardous financial condition: means that, based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, is unlikely to be able to:

  (1) Meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or

  (2) Pay other obligations in the normal course of business. See Hawaii Revised Statutes 431K-1

• Insurance: means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk which is determined to be insurance under the laws of this State. See Hawaii Revised Statutes 431K-1
• Risk retention group: means any corporation or other limited liability association formed under the laws of any state, Bermuda, or the Cayman Islands:

  (1) Whose primary activity consists of assuming and spreading all, or any portion, of the liability exposure of its group members;

  (2) Which is organized for the primary purpose of conducting the activity described under paragraph (1);

  (3) Which:

  (A) Is chartered and licensed as a liability insurance company and authorized to engage in the business of insurance under the laws of any state; or

  (B) Before January 1, 1985, was chartered or licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before this date, had certified to the insurance commissioner of at least one state that it satisfied the capitalization requirements of that state, except that any group shall be considered to be a risk retention group only if the group has been engaged in business continuously since this date and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability, as defined in the Product Liability Risk Retention Act of 1981, 15 U. See Hawaii Revised Statutes 431K-1

• State: means any state of the United States or the District of Columbia. See Hawaii Revised Statutes 431K-1