[§431P-5.5] Accumulation of $500,000,000 in funds and commitments. (a) Upon written confirmation from the insurance commissioner that the director of finance has secured $500,000,000, in the aggregate, in the form of:
(1) Commitments from either the federal government or an agency of the federal government or a financial institution;
(2) Revenue bonds; or
(3) A combination of the commitments or bonds;
the Hawaii hurricane relief fund shall:
(1) Control or freeze rates; and
(2) Begin accumulating premiums from policies of hurricane property insurance, the special mortgage recording fee, the 3.75 per cent annual assessment on insurance companies' property and casualty premiums, and the interest thereon, net of any required reinsurance payments, operating expenses and funds necessary for the development of a comprehensive loss reduction plan.
(b) When the balance of the net moneys accumulated totals $500,000,000, the Hawaii hurricane relief fund shall notify the insurance commissioner of that fact. The insurance commissioner, in turn, shall order, following the receipt of the notice, a reduction in the rates for policies of hurricane property insurance.
(c) In the event of a loss from a covered event, the net moneys accumulated shall be used to reduce the commitments and bonds described under subsection (a). The commitments, plus bonds, plus the net moneys accumulated shall be used to settle claims in the event of a covered event in an amount not exceeding $500,000,000 in the aggregate, per covered event. The net accumulated moneys, commitments, and bonds shall be used only in the event losses from a covered event exceed the assessment pursuant to section 431P-5(b)(8)(B).
(d) In the event the balance of the net accumulated moneys falls below $400,000,000, the Hawaii hurricane relief fund shall establish rates, subject to the approval of the insurance commissioner, necessary to replenish the account balance to $500,000,000. The director of finance shall arrange for additional commitments whenever the account balance falls below $400,000,000.
(e) The Hawaii hurricane relief fund shall be exempt from paying all taxes and fees levied by the State on other insurers. [L Sp 1995, c 32, §2]