On April 7, Hawaii Insurance Commissioner Gordon Ito announced that Family Health Hawaii, MBS was order into liquidation.
State First Circuit Court Judge Karen T. Nakasone signed the order, effective immediately.
Through the order, Commissioner Ito is authorized to take possession and control of Family Health’s assets as the recognized liquidator. He will also assume the powers of the company’s directors and officers.
It was revealed through Family Health’s annual filings that the company was below the minimum net worth level required by state law and that it had no prospects of making up the deficit.
The insurer had been working with the state’s examination team before the filing in 2015, but Family Health notably had missed several deadlines.
“This is a regrettable situation. However, once we determined the degree of the existing financial hazard, the decision was made to protect the policyholders and creditors,” remarked Ito. “Falling below statutory solvency requirements compelled this liquidation action. Further delay would only increase the risk of loss and jeopardize FHH’s policyholders’ access to healthcare and providers under their plans.”
