(a) An employer joining a workers’ compensation self-insurance group after the group has been issued a certificate of approval shall submit an application for membership to the board of trustees or its administrator and enter into the indemnity agreement required by section 386-194(b). Membership shall take effect no earlier than each member’s date of approval. The application for membership and its approval shall be maintained as permanent records of the board of trustees.
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Terms Used In Hawaii Revised Statutes 386-198

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Compensation: means all benefits accorded by this chapter to an employee or the employee's dependents on account of a work injury as defined in this section; it includes medical and rehabilitation benefits, income and indemnity benefits in cases of disability or death, and the allowance for funeral and burial expenses. See Hawaii Revised Statutes 386-1
  • Department: means the department of labor and industrial relations. See Hawaii Revised Statutes 386-1
  • Employer: means any person having one or more persons in the person's employment. See Hawaii Revised Statutes 386-1
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(b) Each member of a group shall be subject to cancellation by the group pursuant to the bylaws of the group. In addition, each member may elect to terminate participation in the group. The group shall notify the insurance commissioner and department of labor and industrial relations of the termination or cancellation of a member within ten days. The group shall maintain coverage of each canceled or terminated member for thirty days after the notice, at the terminating member’s expense, unless the group is notified sooner by the department that the canceled or terminated member has procured workers’ compensation insurance, has become an approved self-insurer, or has become a member of another group.
(c) The group shall pay all workers’ compensation benefits for which each member incurs liability during the member’s period of membership. A member who elects to terminate its membership or is canceled by a group remains jointly and severally liable for workers’ compensation obligations of the group and its members which were incurred during the canceled or terminated member’s period of membership.
(d) A group member is not relieved of its workers’ compensation liabilities incurred during its period of membership, except through payment by the group or the member of required workers’ compensation benefits.
(e) The insolvency or bankruptcy of a member does not relieve the group or any other member of liability for the payment of any workers’ compensation benefits incurred during the insolvent or bankrupt member’s period of membership.

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