Terms Used In Hawaii Revised Statutes 431K-3

• Commissioner: means the insurance commissioner of this State. See Hawaii Revised Statutes 431K-1
• feasibility study: means an analysis which presents the expected activities and results of a risk retention group including, not less than the following:

  (1) The coverages, deductibles, coverage limits, rates, and rating classification systems for each line of insurance the group intends to offer;

  (2) Historical and expected loss experience of the proposed members and national experience of similar exposures to the extent that this experience is reasonably available;

  (3) Pro forma financial statements and projections;

  (4) Appropriate opinions by a qualified, independent casualty actuary, including a determination of minimum premiums or participation levels required to commence operations and to prevent a hazardous financial condition;

  (5) Identification of management, underwriting procedures, managerial oversight methods, investment policies;

  (6) Identification of each state in which the risk retention group has obtained, or sought to obtain, a charter and license, and a description of its status in each state; and

  (7) Other matters as may be prescribed by the commissioner for liability insurance companies authorized by the insurance laws of the state in which the risk retention group is chartered. See Hawaii Revised Statutes 431K-1

• Financially impaired: means that a risk retention group:

  (1) Has admitted assets that are less than the sum of its aggregate liabilities and the amount of surplus to policyholders required to be maintained by a risk retention group chartered in this State and authorized to do the same kind or kinds of insurance; or

  (2) Has admitted assets that are less than the sum of its aggregate liabilities and outstanding capital stock; or

  (3) Is insolvent. See Hawaii Revised Statutes 431K-1

• 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

• Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
• 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
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Liability: means legal liability for damages, including costs of defense, legal costs and fees, and other claims expenses because of injuries to other persons, damage to their property, or other damage or loss to those other persons resulting from or arising out of:

  (1) Any business, whether for profit or nonprofit, trade, product, services, including professional services, premises, or operations; or

  (2) Any activity of any state or county government, or any agency or political subdivision;

  but does not include personal risk liability and an employer's liability with respect to its employees other than legal liability under the Federal Employers' Liability Act, 45 U. 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

• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• State: means any state of the United States or the District of Columbia. See Hawaii Revised Statutes 431K-1