Haw. Code R. § 16-7-10 - Joint liability for plan business
(a) In the event of
the failure of any member, through insolvency or otherwise, to pay promptly its
portion of any loss or expense after the board of directors shall have made
written demand upon it to pay the loss or expense, the board shall report the
delinquency to the insurance commissioner for appropriate action.
(b) If the loss or expense remains unpaid
beyond a reasonable period, all of the other members, upon notification by the
board, shall promptly pay their respective shares, each contributing its
respective share as provided in section 16-7-3 with the basis of sharing
adjusted to exclude the premiums written of the member in default. Members
which have made contributions shall have the right of recovery therefor against
the member in default, provided, the board of directors may enter into an
agreement with any such member in default, or with the legal representative
thereof, upon an amount which shall constitute a full settlement of all of the
obligations of said member to the remaining members.
Notes
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