Haw. Code R. § 16-7-9 - Servicing carrier(s)
(a) In selecting a
servicing carrier or carriers the board should satisfy itself that the
servicing carrier possesses sufficiently experienced and qualified personnel to
properly underwrite medical malpractice business in the State of Hawaii and to
properly service claims that arise therefrom.
(b) The servicing carrier must have the
ability to collect the necessary data to disburse commission payments to agents
on behalf of the plan and have the ability to store the data and report same to
the Internal Revenue Service annually, if required.
(c) The servicing carrier must generate the
statistical and accounting information in report format required. The required
content and format of these reports are to be set out in the operating
principles.
(d) The board of
directors, in its sole discretion, may offer or allow a servicing carrier
reimbursement in whole or in part for specific extraordinary expense incurred
in qualifying for, continuing as or ceasing to be a servicing carrier. The
expense must be explained and supported in detail as required by the board of
directors, must be in its judgment significantly in excess of the normal
additional expense expected to beincurred by the carrier, and must be actually
incurred before reimbursement.
(e)
The board of directors may in its discretion authorize reimbursement of the
servicing carrier for normal operating expenses incurred in connection with
plan business. The normal operating expenses shall be defined and designated by
the board but shall not include any loss or expense incurred as a result of
fraud or dishonesty on the part of the servicing carrier's personnel
(including, but not limited to, independent adjusters and agents), and each
servicing carrier shall hold the plan harmless from and reimburse it for any
loss or expense arising out of fraud or dishonesty charged to the
plan.
(f) The designation of a
servicing carrier may be withdrawn at the option of the servicing carrier or
the board of directors on the giving of four months' written notice to the
other. Such arrangement may also be terminated at any time by mutual agreement
of the servicing carrier and the board of directors or terminated by the board
of directors for just cause.
Notes
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