Hawaii Insurance Guaranty Associati

“Insurers which were admitted as of may 25, 1971 to transact the kinds of insurance covered by the act in the state of hawaii shall be members of the hawaii insurance guaranty association. Each insurer admitted after may 25, 1971 to transact the kinds of insurance covered by the act shall automatically become, effective on the date of its admission, a member of the guaranty association. An insurer which ceases to be admitted after may 25, 1971 shall automatically cease to be a member effective on the day following the termination or expiration of its certificate of authority to transact the kinds of insurance covered by the act, provided such insurer shall remain liable for any assessments based on insolvencies occurring prior to the termination of its certificate.”

“The board of directors shall consist of nine member insurers. The board of directors shall be elected by the member insurers and shall fairly represent member insurers with each member insurer to have one vote. In the event the commissioner determines that all member insurers are not fairly represented, the commissioner shall disapprove the membership of the board and order another election. In the interim between such disapproval and the subsequent election, the commissioner may appoint a temporary board of directors which fairly represents the member insurers.”

“The form 990 is routed to the board of directors for review and approval before submittal to the internal revenue service.”

“Annually, each employee and the board of directors are required to read, acknowledge, and accept in writing, the association's conflict of interest policy. The board of directors and executive director monitor the policy throughout the year.”

“The executive committee meets annually to discuss and approve any salary increases for the executive director and other key employees, using the appropriate comparable salary data.”

“The executive committee meets annually to discuss and approve any salary increases for the executive director and other key employees, using the appropriate comparable salary data.”

“The association makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“The association was created under the hawaii insurance guaranty association act under article 16, chapter 431 of the hawaii revised statutes. The association acts as a mechanism for the timely payment of covered claims under certain insurance policies to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, and to assess the cost of such protection among insurers.”

“Accounting method used to prepare form 990 financial statements and reporting, question 1 the form 990 is prepared on a modified cash basis, the same accounting basis as the association's audited financial statments.”