(a) Any mass merchandising agreement may provide for the readjustment of the rate of premium based on experience at the end of the first year for any subsequent year of insurance, and such readjustment may be made retroactive only for the policy year.
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Terms Used In Hawaii Revised Statutes 431:12-111

  • Employees: includes compensated officers, managers, and employees of a firm, corporation, partnership, sole proprietor, trust, estate, or members of an unincorporated association or nonprofit organization. See Hawaii Revised Statutes 431:12-101
  • Employer: includes any firm, corporation, partnership, sole proprietorship, trust, estate, and unincorporated association or nonprofit organization; it also includes the State, any county, any municipal corporation, and any governmental unit, agency, or department thereof. See Hawaii Revised Statutes 431:12-101
  • Mass merchandising agreement: means an agreement between an insurer and an employer for the sale of insurance to the employees of the employer on a mass merchandising basis. See Hawaii Revised Statutes 431:12-101
  • plan: means a program, design, or scheme of the insurance to be mass merchandised, including terms, coverages, and premiums. See Hawaii Revised Statutes 431:12-101
(b) If a policy dividend is declared or a reduction in rate is made or continued under any mass merchandising plan, the excess, if any, of the aggregate dividends or rate reductions under the policy and all other group insurance policies of the policyholder over aggregate expenditure for insurance under such policies made from funds contributed by the policyholder, or by an employer of an insured person, or by a union or association to which an insured person belongs, including expenditures made in connection with administration of such policies, shall be applied by the policyholder for the sole benefit of insured employees.

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