State closes insolvent Hawaii insurance company

AP News
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Posted: Dec 17, 2009 11:05 AM

The state has closed a Hawaii workers compensation insurance company.

The state Insurance Division said Wednesday that financial problems of affiliated companies in Australia and California led to the downfall of HIH America Insurance Co. of Hawaii in 2001.

The state insurance commissioner seized HIH Hawaii's operations when it became insolvent, and paid 100 percent of all claims of injured workers, policyholders and Hawaii creditors.

State officials say more than $18 million of assets were recovered and paid out to creditors located in Hawaii and California.

HIH Hawaii has received court approval to disburse its remaining assets and dissolve the corporation before the end of the year.