Haw. Code R. § 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:
(1) Billing and
collection.
(2) Commission payments
and statements to producers.
(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.
Notes
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