The state Insurance Division said it has closed HIH America Insurance Company of Hawaiçi, a Hawaiçi workers compensation insurance company it took over in 2001, because it was insolvent.

Financial problems at its affiliated companies in Australia and California led to the downfall of the company when its ability to pay its claims and vendors was jeopardized. The insurance commissioner seized HIH Hawaiçi’s operations when it became insolvent, and, under the Hawaiçi Insurance Division’s control, paid 100 percent of all claims of injured workers, policyholders, and Hawaiçi creditors.
More than $18 million of assets were recovered and paid out to creditors located in Hawaiçi and California, said Insurance Commissioner J.P. Schmidt..
“The Insurance Division’s accomplishment is exemplary since in almost all cases creditors of an insolvent insurer could reasonably expect to receive only a partial recovery, usually 10 to 20 cents on the dollar,” Schmidt said.
However, moving quickly allowed the state to seize assets and aggressively pursue claims to achieve a very good result for consumers.
The company, HIH Hawaiçi, has received court approval to disburse its remaining assets and dissolve the corporation before the end of the year.