HAR §12-11-58. Cancellation of an insurance contract

(a) No insurer shall cancel a contract of insurance providing in whole or in part for disability benefits required by the statute prior to the expiration date of the contract unless notice of intention to cancel on a specified date has been filed with and served on the employer and the director at least ten days prior to the specified cancellation date. (b) The ten-day advance notice requirement in subsection (a) need not be complied with when a new insurer is substituted. In the event of the substitution, the previous insurer shall immediately file with and serve on the employer and the director notice that the contract was cancelled as of a specified date because the obligation to pay benefits for disabilities incurred after the date was assumed by a new insurer which shall be specifically identified if its identity is known by the previous insurer. (c) The insurer need not file an additional notice of the termination date prescribed in a contract of insurance, unless the date was not shown in the notice of insurance filed with the director pursuant to section 392-42, HRS. (d) If a plan provides by its terms for an expiration date, acceptance of the plan by the director is notice thereof. Additional DLIR 12-11 Page 20 notice by the insurer of cancellation of the insurance contract as of the expiration date of the plan is not necessary. [Eff 5/11/81] (Auth: HRS §392-91) (Imp: HRS §§392-42, 392-50) §12-11-59 Employee contributions toward the cost of coverage under insurance contracts. (a) If an employer provides for disability benefits under the statute by a contract of insurance, the premium charged therefor shall represent the cost of providing the benefits. The employees' contributions shall not exceed one-half of the cost but not more than 0.5 per cent of the employees' weekly wage as determined pursuant to section 392-43, HRS. (b) If, after the end of a policy year, the employer receives an experience rating credit or a dividend back from the insurer, the employees' share of the experience rating credit or dividend shall be refunded or credited to the employees by the employer. "Employees' share" means one-half of the excess remaining, if any, after the employer has deducted (1) any expenses of the employer directly allocable to the cost of administering the insurance contract, and (2) the amount, if any, by which the employer's contribution to the premium charged during the prior policy years exceeded the employees' contributions. At the employer's option, the employer may refund in cash each employee's proportionate share of the employees' share, or may credit the total employees' share of the experience rating credit or dividend from the prior policy year against the total amount contributable by the employees during the current policy year. (c) The applicable provisions of a collectively bargained agreement shall prevail in the event of a conflict between those provisions and this chapter. [Eff 5/11/81] (Auth: HRS §392-91) (Imp: HRS §§392-43, 392-6l)