Hawaii Administrative Rules
Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
Chapter 7 - HAWAII MEDICAL MALPRACTICE UNDERWRITING PLAN
Subchapter 3 - OPERATING PRINCIPLES
Section 16-7-22 - Servicing carrier(s)

(a) The plan may authorize the servicing carrier to bind coverage and issue policies on behalf of the plan and do those things necessary and incidental thereto, including the collection and transmission of premium to the plan and payment of commission to the general agent.

(b) The servicing carrier shall pay premium taxes at a rate of 2.6325 per cent on plan business.

(c) Companies applying to the board to be servicing carriers will be required to estimate any start-up and shut-down expense. It will be the responsibility of the board of directors to make the judgments as to what costs are extraordinary, and give due consideration to any extraordinary expense reimbursement applied for or expected.

(d) The servicing carrier, if directed to do so by the plan may bind coverage for up to thirty days and will issue policies on behalf of the plan but if coverage is bound the servicing carrier must issue insurance policies to applicants by the expiration date of the thirty-day binders.

(e) The servicing carrier must have the ability to carry out all necessary accounting procedures as outlined by these operating principles. These insurance accounting procedures, if applicable, will include, but not be limited to:

(f) To generate the statistical and accounting information of the plan, the servicing carrier must use the services of a statistical organization such as the Insurance Services Office or the National Association of Independent Insurers.