Chapter 435E — Chapter 435E

PART I. COOPERATIVE INDEMNITY §435E-1 Definitions. Unless the context clearly requires otherwise: "Commissioner" means the insurance commissioner of this State. "Physician" or "surgeon" means any person licensed to practice medicine or osteopathic medicine under chapter 453; or a…

PART II. TRUST AGREEMENTS §435E-11 Trust agreement, required. (a) Each participating member shall enter into and, concurrently therewith, receive an executed copy of a trust agreement, which shall govern the collection and disposition of all funds of the interindemnity arrangemen…

§435E-12 Trust corpus, contributions. There shall be an initial trust corpus of not less than $3,000,000 which corpus shall be a trust fund to secure enforcement of the interindemnity arrangement. The average initial contribution to such corpus shall be not less than $20,000 per …

§435E-13 Board of trustees. The reserve trust fund created by such trust agreement shall be administered by a board of trustees of three or more members, all of whom shall be physicians and surgeons, participating members in the interindemnity arrangement, and elected biennially …

§435E-14 Board of trustees, custodian. The board of trustees shall be the custodian of all funds of the interindemnity arrangement, and all such funds shall be deposited in such bank or banks and savings and loan associations in Hawaii as the board designates, and each such accou…

§435E-15 Funds, investment. All funds held in trust which are in excess of current financial needs shall be invested and reinvested from time to time, under the direction of the board of trustees, in a manner consistent with the requirements of article 8 of chapter 412, or in cer…

§435E-16 Payments. The income earned on the corpus of the trust fund shall be the source for the payment of the claims, costs, judgments, settlements, and costs of administration contemplated by such interindemnity arrangement, and to the extent such income is insufficient for su…

§435E-17 Minimum indemnity level. Each participating member shall be covered by such interindemnity arrangement for not less than $100,000 for each claim and not less than $300,000 annual aggregate of professional negligence, with the terms and conditions of such coverage to be s…

§435E-18 Withdrawal of corpus. Withdrawal of all, or any portion of, the corpus of the reserve trust fund shall be upon the written authorization signed by at least two-thirds of the members of the board of trustees. [L 1977, c 182, pt of §1]

§435E-19 Annual reports; disclosure. The board of trustees shall furnish the following to each member participating in such interindemnity arrangement, and shall file a copy with the commissioner: In addition to the statements required to be filed pursuant to this section, the bo…

§435E-2 Cooperative indemnity. Physicians and surgeons may, any other law to the contrary notwithstanding, form cooperative corporations for the purposes of this chapter. The members of a cooperative corporation, which shall be limited to physicians and surgeons only, may enter i…

§435E-20 Death of member. In the event a participating member who is in full compliance with the trust agreement dies, the initial contribution made by the decedent shall be returned to the member's estate or designated beneficiary; the indemnity coverage shall continue for the b…

§435E-21 Retirement of member. A participating member who is then in full compliance with the trust agreement and who has reached the age of sixty-five and who has retired completely from the practice of medicine may elect to retire from the interindemnity arrangement, in which c…

§435E-22 Disability of member. During any period in which a participating member, who is then in full compliance with the trust agreement, has, in the judgment of the board of trustees, become unable to perform any and every duty of his or her regular professional occupation, the…

§435E-23 Member failure to pay. In the event a participating member fails to pay any assessment when the same is due, the board of trustees may terminate such person's membership status if such failure to pay is not cured within thirty days from the date the assessment was due. U…

§435E-24 Noncomplying member. In the event a participating member fails to comply with any provision of the trust agreement (other than a failure to pay assessments when due), the board of trustees may terminate the person's membership status if such failure to comply is not cure…

§435E-25 Voluntary termination of a member. A participating member who is then in full compliance with the trust agreement may elect voluntarily to terminate the participating member's membership in the interindemnity arrangement. Upon voluntary termination, the person may furthe…

§435E-26 Involuntary termination of a member. The board of trustees shall have the right to terminate the membership of a participating member where the board of trustees determines that such termination is in the best interests of the interindemnity arrangement even though such …

§435E-27 Rights of members. Each member participating in an interindemnity arrangement shall have the right of access to, and the inspection of, the books and records of the interindemnity arrangement, subject to reasonable regulation by the board of trustees. [L 1977, c 182, pt …

§435E-28 Meeting of members. There shall be a meeting of all members participating in the interindemnity arrangement, at least annually, after not less than ten days' written notice has been given, at a location reasonably convenient to the participating members and on a date whi…

§435E-29 Termination. The interindemnity arrangement, and the reserve trust fund incident thereto, shall be subject to termination at any time by the vote or written consent of not less than three-fourths of the participating members. [L 1977, c 182, pt of §1]

§435E-3 Rules. The commissioner may adopt, amend, and repeal rules necessary to implement this chapter, subject to chapter 91. [L 1977, c 182, pt of §1; am L 1982, c 203, §16]

PART III. BOARD OF TRUSTEES, MEMBERS §435E-31 Annual report, certificate of transmittal. The board of trustees shall cause to be recorded with the commissioner within one hundred twenty days following the end of each fiscal year, a written statement, executed by a majority of the…

§435E-32 Prospective member. Each physician or surgeon solicited to become a participating member in an interindemnity arrangement shall receive in writing, at least forty-eight hours prior to the execution by the prospective participating member of the trust agreement, and at le…

§435E-33 Compensation. No person shall receive, or be entitled to receive any payment, bonus, salary, income, compensation, or other benefit whatsoever, either from the reserve trust fund or the income therefrom or from any other funds of the interindemnity arrangement or the mem…

§435E-34 Peer review. (a) A peer review committee or committees shall be established by the trust agreement to review the qualifications of any physician and surgeon to participate or continue to participate in the interindemnity arrangement, and to review the quality of medical …

PART IV. UNFAIR COMPETITION AND DECEPTIVE ACTS OR PRACTICES §435E-41 Unfair methods of competition and deceptive acts or practices. The following are unfair methods of competition and deceptive acts or practices with respect to cooperative corporations or interindemnity arrangeme…

§435E-42 Enforcement. Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of this chapter, the commissioner may in the commissioner's discretion bring an appropriate action in any circuit court …

§435E-43 Investigation, publication. The commissioner, in the commissioner's discretion, may:

§435E-44 Hearing, subpoena. For the purpose of any investigation or proceeding, the commissioner or any person designated by the commissioner may hold hearings subject to chapter 91. [L 1977, c 182, pt of §1; am L 1982, c 203, §16; gen ch 1985]

§435E-45 Refusal to comply. In case of contumacy by, or refusal to obey a subpoena issued to, any person, the circuit court, upon application by the commissioner, may issue to the person an order requiring the person to appear before the commissioner or the officer designated by …

§435E-46 Attendance and testimony. No person is excused from attending or testifying or from producing any document or record before the commissioner, or in obedience to the subpoena of the commissioner or any officer designated by the commissioner, or in any proceeding institute…