HAR §16-7-17. Policy forms and rates

(a) All policies issued by the plan shall be written for a period of one year to commence at 12:01 a.m. on their respective 9 effective dates and terminating at l2:01 a.m. one year thereafter; provided policies issued by the plan may be written for a period of less than one year in order to provide for a common expiration date of all policies. As determined by the board, all such policies issued by the plan, which shall be written on either the "occurrence" basis or the "claims made" basis, shall not contain a provision which requires as a condition precedent to settlement or compromise of any claim, the consent or acquiescence of the insured. (b) Policies issued by the plan may not be cancelled or refused renewal by the plan except when: (1) The license of an insured physician is revoked or suspended by the board of medical examiners; or (2) Premium payments are not made after a reasonable demand therefor; or (3) The board reasonably believes that a licensed physician or hospital is no longer an insurable risk. (c) In the event of cancellation or non-renewal, the plan shall continue coverage to the date of expiration, or for thirty days following notice, whichever occurs first. Within fifteen days of the cancellation date, the plan shall refund the pro rata unearned portion, if any, of any prepaid premium. Written notice by certified mail shall be given to the insured and the insurance commissioner not less than thirty days prior to the effective date of the cancellation or non-renewal. The mailing of the notice shall be sufficient proof of notice of cancellation or non-renewal. (d) The rates, rating plans, rating rules, rating classifications, and territories applicable to the insurance written by the plan, and statistics relating thereto shall be subject to sections 431-691 to 431-707, HRS, giving due consideration to the past and prospective loss experience for medical professional liability within and outside this State, trends in frequency and severity of losses, the investment income of the plan, and such other information as the insurance commissioner may require. All rates shall be on an actuarially sound basis and shall be calculated to be self-supporting and may give consideration to any other factors deemed appropriate by the board of directors. (e) Any deficit sustained by the plan shall be recouped as provided for in section 16-7-3(d). (f) In the event that sufficient funds are not available for the sound financial operation of the plan, then, pending recoupment as provided for in section 16-7-3(d), all members shall, on a temporary basis, contribute to the financial requirements of the plan in the manner provided in section 16-7-3(b). Any such contribution shall be reimbursed to the members by recoupment as provided in section 16-7-3(d). [Eff 6/22/81] (Auth: HRS §435C-2) (Imp: HRS §§435C-3, 435C-4) 10