What can happen if an unauthorized insurer fails to pay a judgment within 30 days in Hawaii?

If an unauthorized insurer fails to pay a judgment within 30 days in Hawaii, a fee of 12.5% of the judgment amount may be added. This provision serves as a form of penalty for the insurer’s non-compliance with state regulations regarding the payment of judgments. It aims to protect consumers and ensure that they can seek compensation for claims in a timely manner.

The addition of this fee is significant because it not only incentivizes authorized insurers to comply with legal judgments but also acts as a deterrent for unauthorized insurers, emphasizing the importance of maintaining proper licensing and adhering to state laws. The structure is designed to promote accountability, ensuring that claimants have adequate recourse if they find themselves dealing with an insurer that is unwilling or unable to honor a court ruling.