What recourse do member insurers of the Hawaii Insurance Guaranty Association have for recouping assessments?

Member insurers of the Hawaii Insurance Guaranty Association can recoup assessments through placing a surcharge on premiums. This option allows insurers to recover money they have contributed to the guaranty association, which acts as a safety net for policyholders in the event that an insurance company becomes insolvent. By adding a surcharge to premiums, insurers can effectively offset the costs incurred from these assessments without negatively impacting the overall stability and coverage of their policy offerings.

The other options do not align with typical practices for recouping assessments. Selling additional policies would not directly address the financial impact of assessments, as it does not provide a mechanism for recovering those specific costs. Reducing coverage on policies may harm policyholders and potentially lead to regulatory complications. Increasing deductibles on policies might change the policyholder's out-of-pocket responsibilities but is not a method for insurers to recover assessments imposed by the association. Thus, adding a surcharge to premiums stands out as the most effective and established approach for insurers to recoup their financial contributions to the Hawaii Insurance Guaranty Association.