Haw. Code R. § 16-7-17 - Policy forms and rates
(a) All policies
issued by the plan shall be written for a period of one year to commence at
12:01 a.m. on their respective effective dates and terminating at 12:01 a.m.
one year thereafter; provided policies issued by the plan may be written for a
period of less than one year in order to provide for a common expiration date
of all policies. As determined by the board, all such policies issued by the
plan, which shall be written on either the "occurrence" basis or the "claims
made" basis, shall not contain a provision which requires as a condition
precedent to settlement or compromise of any claim, the consent or acquiescence
of the insured.
(b) Policies issued
by the plan may not be cancelled or refused renewal by the plan except when:
(1) The license of an insured physician is
revoked or suspended by the board of medical examiners; or
(2) Premium payments are not made after a
reasonable demand therefor; or
(3)
The board reasonably believes that a licensed physician or hospital is no
longer an insurable risk.
(c) In the event of cancellation or
non-renewal, the plan shall continue coverage to the date of expiration, or for
thirty days following notice, whichever occurs first. Within fifteen days of
the cancellation date, the plan shall refund the pro rata unearned portion, if
any, of any prepaid premium. Written notice by certified mail shall be given to
the insured and the insurance commissioner not less than thirty days prior to
the effective date of the cancellation or non-renewal. The mailing of the
notice shall be sufficient proof of notice of cancellation or
non-renewal.
(d) The rates, rating
plans, rating rules, rating classifications, and territories applicable to the
insurance written by the plan, and statistics relating thereto shall be subject
to sections 431-691 to 431-707, HRS, giving due consideration to the past and
prospective loss experience for medical professional liability within and
outside this State, trends in frequency and severity of losses, the investment
income of the plan, and such other information as the insurance commissioner
may require. All rates shall be on an actuarially sound basis and shall be
calculated to be self-supporting and may give consideration to any other
factors deemed appropriate by the board of directors.
(e) Any deficit sustained by the plan shall
be recouped as provided for in section 16-7-3(d).
(f) In the event that sufficient funds are
not available for the sound financial operation of the plan, then, pending
recoupment as provided for in section 16-7-3(d), all members shall, on a
temporary basis, contribute to the financial requirements of the plan in the
manner provided in section 16-7-3(b). Any such contribution shall be reimbursed
to the members by recoupment as provided in section 16-7-3(d).
Notes
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