How can members of the Hawaii Insurance Guaranty Association recoup assessments they've paid?

The way members of the Hawaii Insurance Guaranty Association recoup assessments they've paid is through placing a surcharge on premiums. This mechanism operates as a form of cost recovery for the members who contribute to the Guaranty Association. When an insurance company becomes insolvent or is unable to fulfill its obligations to policyholders, the association steps in to provide coverage.

To finance these operations and ensure that the association can meet its commitments, assessments are levied against the members. These members can then recoup these costs by implementing a surcharge on the premiums they charge their policyholders. This allows them to recover the expenses incurred while still providing necessary insurance coverage and ensuring the financial stability of the association overall.

The other choices do not represent valid methods of recouping assessments. Submitting claims for potential losses pertains to policyholder rights rather than how insurers manage their finances relative to the association. Redistributing profits from successful claims suggests a gain from claims rather than a method for recouping assessments. Increasing coverage limits relates to the policies offered but doesn't affect the recoupment of paid assessments.