Hawaii Revised Statutes 657D-37 – Guarantee of premiums and interest by State; settlement of amounts due upon expiration of protection; subrogation of state crediting debt repayments
Terms Used In Hawaii Revised Statutes 657D-37
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Insured: includes any person in the state military forces, whose life is insured under and who is the owner and holder and has an interest in a policy. See Hawaii Revised Statutes 657D-31
- Insurer: includes any firm, corporation, partnership, or association chartered or authorized to engage in the insurance business to issue a policy as defined by the laws of a state or of the United States. See Hawaii Revised Statutes 657D-31
- Policy: includes any contract of life insurance or policy on a life, endowment, or term plan, including any benefit in the nature of life insurance arising out of membership in any fraternal or beneficial association, that does not provide for the payments of any sum less than the face value thereof or for the payment of an additional amount as premiums if the insured engages in the military service of the United States or which does not contain any limitations or restrictions upon coverage relating to engagement in or pursuit of certain types of activities which a person might be required to engage in by virtue of the person's being in that military service, and:
(1) Which is in force on a premium-paying basis at the time of application for benefits hereunder; and
(2) Which was made and a premium paid thereon not less than one hundred eighty days before the date insured entered into the military service. See Hawaii Revised Statutes 657D-31
Payment of premiums and interest thereon at the rate specified in § 657D-36 becoming due on a policy while protected under this part is guaranteed by the State, and if the amount so guaranteed is not paid to the insurer prior to the expiration of the period of insurance protection under this part, the amount then due shall be treated by the insurer as a policy loan. If at the expiration of that period the cash surrender value is less than the amount then due, the policy shall then cease and the State shall pay the insurer the difference between the amount and the cash surrender value. The amount paid by the State to an insurer on account of applications approved under this part shall become a debt due to the State by the insured on whose account payment was made and, notwithstanding any other law, the amount may be collected either by deduction from any amount due the insured by the State or as otherwise authorized by law. Any moneys received as repayment of debt incurred under this part shall be credited to the appropriation for the payment of claims under this part.