What is the consequence if an unauthorized insurer does not pay a judgement in Hawaii within 30 days?

If an unauthorized insurer fails to pay a judgment in Hawaii within 30 days, the law stipulates that the insured can recover an additional amount for attorney's fees, which is set at 12.5% of the judgment amount. This provision is designed as a deterrent against unauthorized insurers, ensuring that they are motivated to comply with court judgments. Adding a percentage for attorney's fees helps to protect policyholders and incentivizes unauthorized insurers to resolve their obligations promptly.

This mechanism reflects Hawaii's regulatory framework that aims to uphold accountability among insurers and ensure that consumers are not left at a disadvantage when facing an insurer that does not follow the legal requirements for paying judgments. By adding this fee to the original judgment, it ensures that the insured has some recourse and assistance in obtaining what they are owed, recognizing that legal processes can incur additional costs.