Hawaii Administrative Rules
Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
Chapter 99 - REAL ESTATE BROKERS AND SALESPERSONS
Subchapter 10 - CONDOMINIUM HOTEL OPERATORS
Section 16-99-148 - Fidelity bond
Current through February, 2024
(a) The fidelity bond shall be issued by a company currently authorized by the insurance commissioner of Hawaii to issue insurance in this State.
(b) Unless otherwise approved by the commission, the fidelity bond shall:
(c) The amount of the deductible shall not exceed the greater of $2,000 or five per cent of the face amount of the fidelity bond. In no case shall the amount of the deductible exceed the maximum deductible amount of $5,000.
(d) When the fidelity bond is a name schedule bond, the condominium hotel operator shall:
(e) Unless otherwise approved by the commission, the fidelity bond shall not contain a criminal conviction endorsement or rider which requires the prosecution or conviction of the employee as a condition precedent to recovery on the bond.
(f) The commission shall terminate the registration of a condominium hotel operator for failure to maintain a fidelity bond in compliance with section 467-30, HRS, and this chapter.
(g) The fidelity bond shall not be required of an individual owner providing apartments or units for transient lodging; provided that ownership of the apartment or unit is in the individual owner's name and not in an entity's name; and provided further that the owner has no employees. Where the individual owner has an employee, the individual owner shall obtain and maintain a fidelity bond.