The commissioner shall determine prior to any conversion, the nonprofit entities, if any, that are eligible to receive assets from the converting nonprofit entity. The charitable mission and grant-making functions of each eligible nonprofit entity must:

(1) Be dedicated to promoting or serving the health care needs of residents of the State;

Ask an insurance law question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Hawaii Revised Statutes 432C-5

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Commissioner: means the insurance commissioner. See Hawaii Revised Statutes 432C-1
  • Conversion: means the transfer or sale of a significant amount of a nonprofit entity's assets to a for-profit entity or through any other means as determined by the commissioner. See Hawaii Revised Statutes 432C-1
  • Nonprofit entity: means any charitable organization operating pursuant to Title Hawaii Revised Statutes 432C-1
(2) Not be in direct competition with the converting nonprofit entity; and
(3) Be in existence and have qualified for tax-exempt status under Title 26 United States Code § 501(c)(3), (4), (8), (9), (26), or (e), before the transfer of assets.