Associated Press
A state judge has cleared the way for the liquidation of a health-coverage provider recently seized by the state.
State Insurance Commissioner Wayne Metcalf ordered Hawai‘i Healthcare Alliance to halt operations in October because it did not meet the state’s minimum capitalization and reserve requirements.
The state also has temporarily suspended the insurance licenses of company president Darren Larson pending further proceedings.
Hawai‘i Healthcare Alliance provided health coverage for about 3,000 people, targeting self-employed professionals and small-business owners.
State records show the company had about $82,000 in assets when regulators moved in, but Metcalf said outstanding claims exceeded that amount by at least $200,000 in November.
Circuit Judge Sabrina McKenna this month declared the firm legally insolvent, clearing the way for liquidation of assets to pay outstanding claims, Metcalf said.
Larson’s attorneys have said Hawai‘i Healthcare Alliance met legal conditions for its type of business.
