State seizes
workers’ comp insurer
HIH America

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By Russ Lynch
Star-Bulletin

State regulators have seized one of Hawaii's workers' compensation insurers, HIH America Insurance Co. of Hawaii Inc., declaring it insolvent.

Wayne Metcalf, state insurance commissioner, said the insurance division acted yesterday with its California equivalent, which took control of two HIH affiliates, HIH America Compensation and Liability Insurance Co. and Great States Insurance Co.

HIH Hawaii had some 5 percent of the Hawaii workers' comp business.

Now that the company is protected by the state, employers' claims can still be sent to HIH America Insurance, P.O. Box 1350, Honolulu, HI 96807, the state said. Consumers, policyholders and others with questions about the seizure may call the insurance division at 536-1771 for information.

Metcalf said four companies are about to enter the island workers' compensation business to help fill the void left by HIH and two other insurers that just left the business. Eagle Insurance and the Fremont Compensation Insurance Group, which like HIH are controlled from outside Hawaii, recently left the Hawaii workers' comp market. Metcalf said in February that Eagle, Fremont and HIH together held about 10 percent of the Hawaii workers' comp business. The companies entering the market to replace them and build new business are General Casualty Co. of Wisconsin, Regent Insurance Co., AIG Hawaii Insurance Co. and American Pacific Insurance Co.

The insurance division said HIH Hawaii and its California counterparts, which together are in debt to the tune of about $60 million, stopped signing up new policies late last year because of their financial conditions. Financial troubles outside Hawaii led to the problems at HIH, Metcalf said.

NTER>Star-Bulletin staff writer Lyn Danninger contributed to this story.