--- title: "Check Hawaii insolvency eligibility against the buyer and policy" description: "Hawaii excludes financial-guaranty and investment-risk insurance from its property-and-liability guaranty association, and separately limits who can make covered claims." canonical: "https://spot.insure/coverage/contract-frustration/hawaii" page-type: "coverage-state-guide" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/contract-frustration/hawaii) # Check Hawaii insolvency eligibility against the buyer and policy Hawaii’s property-and-liability association excludes financial-guaranty insurance, investment-risk protection, and bonding obligations. Even for a policy that is within the association’s scope, Hawaii limits covered claims by the insured’s residence or the permanent location of damaged property and excludes certain high-net-worth first-party claims.[^1][^2] **Coverage:** [Contract frustration](/coverage/contract-frustration) · [Hawaii](/coverage/states/hawaii) ## What Is Contract Frustration? Contract frustration may fit your business when an international contract is exposed to political disruption or government action. If your main risk is a customer who cannot pay, compare trade-credit coverage instead. [Read the national Contract frustration guide](/coverage/contract-frustration). ## What to Watch for in Hawaii ### The association exclusion depends on the policy’s actual class Hawaii excludes mortgage or financial guaranty, investment-risk protection, and surety or other bonding obligations from this association. Ask the insurer to identify the policy form and line; the product name does not establish that an exclusion applies.[^1] ### A covered claim has a Hawaii connection test The covered-claim definition generally looks to the claimant’s or insured’s residence when the insured event occurs; for a business, it uses the state of its principal place of business. A first-party property claim can instead qualify when the property is permanently located in Hawaii. Keep the insured entity, event date, and covered property clear when asking about a potential association claim.[^2] ### High-net-worth businesses face a first-party claim exclusion Hawaii excludes first-party claims by an insured whose net worth exceeded $25 million on the specified prior December 31; for a business, the calculation includes subsidiaries on a consolidated basis. This is an association eligibility rule, not a limit on what the insurer promised in the policy.[^2] ## Who Regulates Insurance in Hawaii **Hawaiʻi Insurance Division.** The Insurance Division oversees insurance companies and producers, examines Hawaiʻi-based insurers, reviews rate and policy filings, and investigates insurance complaints. It is part of the Department of Commerce and Consumer Affairs.[^3][^4][^5] - [Regulator website](https://cca.hawaii.gov/ins/) - [License lookup](https://cca.hawaii.gov/ins/insurance-license-categories/) - [File a complaint](https://cca.hawaii.gov/ins/complaint/) - Phone: 1-844-808-3222 ### Surplus-Lines Tax and Stamping Office **Reported tax rate:** 4.68% of premium when Hawaiʻi is the home state Hawaiʻi applies a 4.68% tax when it is the insured’s home state. Surplus-lines coverage is placed with an unauthorized insurer, so do not assume the Hawaiʻi Insurance Guaranty Association protects the policy; confirm the insurer’s status and policy terms with your broker.[^6][^7] ## Providers With Documented State Licenses No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. [Check the regulator’s license lookup](https://cca.hawaii.gov/ins/insurance-license-categories/) and confirm availability with a provider when requesting a quote. ## Questions to Ask Before You Buy in Hawaii 1. Which legal entity is the insured, and what state will be its principal place of business when a covered event occurs? 2. What policy wording and regulatory class support the insurer’s view that this form is or is not financial-guaranty or bonding insurance? 3. Could the insured’s consolidated net worth affect any first-party association claim if the insurer becomes insolvent? ## Contract Frustration in Hawaii: FAQ ### Does the “contract frustration” label decide whether Hawaii’s association applies? No. Hawaii’s statute lists excluded classes, but it does not classify a policy by the product label. Ask for the insurer’s actual class and policy wording.[^1] ### Does every policyholder claim qualify for Hawaii association protection? No. The statute requires a Hawaii residence or in-state permanent property connection, and it excludes specified kinds of first-party claims, including those by insureds over the net-worth threshold.[^2] ## Contract Frustration in Other States - [Alabama](/coverage/contract-frustration/alabama) - [Alaska](/coverage/contract-frustration/alaska) - [Arizona](/coverage/contract-frustration/arizona) - [Arkansas](/coverage/contract-frustration/arkansas) - [California](/coverage/contract-frustration/california) - [Colorado](/coverage/contract-frustration/colorado) - [Connecticut](/coverage/contract-frustration/connecticut) - [Delaware](/coverage/contract-frustration/delaware) - [District of Columbia](/coverage/contract-frustration/district-of-columbia) - [Florida](/coverage/contract-frustration/florida) - [Georgia](/coverage/contract-frustration/georgia) - [Idaho](/coverage/contract-frustration/idaho) - [Illinois](/coverage/contract-frustration/illinois) - [Indiana](/coverage/contract-frustration/indiana) - [Iowa](/coverage/contract-frustration/iowa) - [Kansas](/coverage/contract-frustration/kansas) - [Kentucky](/coverage/contract-frustration/kentucky) - [Louisiana](/coverage/contract-frustration/louisiana) - [Maine](/coverage/contract-frustration/maine) - [Maryland](/coverage/contract-frustration/maryland) - [Massachusetts](/coverage/contract-frustration/massachusetts) - [Michigan](/coverage/contract-frustration/michigan) - [Minnesota](/coverage/contract-frustration/minnesota) - [Mississippi](/coverage/contract-frustration/mississippi) - [Missouri](/coverage/contract-frustration/missouri) - [Montana](/coverage/contract-frustration/montana) - [Nebraska](/coverage/contract-frustration/nebraska) - [Nevada](/coverage/contract-frustration/nevada) - [New Hampshire](/coverage/contract-frustration/new-hampshire) - [New Jersey](/coverage/contract-frustration/new-jersey) - [New Mexico](/coverage/contract-frustration/new-mexico) - [New York](/coverage/contract-frustration/new-york) - [North Carolina](/coverage/contract-frustration/north-carolina) - [North Dakota](/coverage/contract-frustration/north-dakota) - [Ohio](/coverage/contract-frustration/ohio) - [Oklahoma](/coverage/contract-frustration/oklahoma) - [Oregon](/coverage/contract-frustration/oregon) - [Pennsylvania](/coverage/contract-frustration/pennsylvania) - [Rhode Island](/coverage/contract-frustration/rhode-island) - [South Carolina](/coverage/contract-frustration/south-carolina) - [South Dakota](/coverage/contract-frustration/south-dakota) - [Tennessee](/coverage/contract-frustration/tennessee) - [Texas](/coverage/contract-frustration/texas) - [Utah](/coverage/contract-frustration/utah) - [Vermont](/coverage/contract-frustration/vermont) - [Virginia](/coverage/contract-frustration/virginia) - [Washington](/coverage/contract-frustration/washington) - [West Virginia](/coverage/contract-frustration/west-virginia) - [Wisconsin](/coverage/contract-frustration/wisconsin) - [Wyoming](/coverage/contract-frustration/wyoming) [Other Coverage in Hawaii](/coverage/states/hawaii) ## Sources [^1]: [Hawaii Revised Statutes §431:16-103, Scope](https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0016-0103.htm) — Hawaii State Legislature; §431:16-103(2)–(9), exclusions from the property and liability insurance guaranty association; history lists amendments through L 2003, c 212, §111. Accessed 2026-09-28. [^2]: [Hawaii Revised Statutes §431:16-105, Definitions](https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0016-0105.htm) — Hawaii State Legislature; “Covered claim” and “member insurer” definitions, including state connection and high-net-worth first-party exclusion; history lists amendments through L 2012, c 250, §1. Accessed 2026-09-28. [^3]: [Insurance Division](https://cca.hawaii.gov/ins/) — Hawaiʻi Department of Commerce and Consumer Affairs; Official division homepage; scope, license search, complaints, contact information. Accessed 2026-09-28. [^4]: [Insurance Licenses and Registrations](https://cca.hawaii.gov/ins/insurance-license-categories/) — Hawaiʻi Insurance Division; Insurance license information; links to state-based system for license applications and status. Accessed 2026-09-28. [^5]: [Filing a Complaint](https://cca.hawaii.gov/ins/complaint/) — Hawaiʻi Insurance Division; Online complaint form and published consumer phone. Accessed 2026-09-28. [^6]: [Surplus Lines Tax](https://cca.hawaii.gov/ins/surplus-lines-tax/) — Hawaiʻi Insurance Division; 4.68% rate and home-state application under HRS § 431:8-315. Accessed 2026-09-28. [^7]: [HRS § 431:16-105: Definitions](https://www.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435/HRS0431/HRS_0431-0016-0105.htm) — Hawaiʻi Legislature; Defines a member insurer as an insurer licensed or holding a certificate of authority in Hawaiʻi; cross-read with HRS § 431:8-102 and § 431:8-301 for unauthorized surplus-lines placements. Accessed 2026-09-28. [^8]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21. [^9]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535.. Accessed 2026-09-22. [^10]: [Insurance Producer Licenses](https://www.corgi.insure/broker-licenses) — Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown.. Accessed 2026-09-28. [^11]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-insurance) — Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16. [^12]: [Licenses](https://www.nextinsurance.com/insurance-licenses/) — ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885.. Accessed 2026-09-28. [^13]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number.. Accessed 2026-09-28. [^14]: [Licenses](https://www.vouch.us/legal/licenses) — Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict.. Accessed 2026-09-15. Updated 2026-09-28. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). 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