A state Circuit Court has abruptly ordered Family Health Hawaii, the state’s smallest health insurer, into liquidation, effective immediately.

The insurer fell below the statutory solvency requirements and did not maintain minimum net worth in 2015 to ensure it is able to meet its obligations.

J.P. Schmidt, who stepped down as Hawaii’s state insurance commissioner in 2010, is the CEO of Family Health Hawaii.

The order, signed by state First Circuit Judge Karen Nakasone, authorizes Insurance Commissioner Gordon Ito, who previously was the deputy insurance commissioner under Schmidt, to take control of the company’s assets and assume the powers of its directors and officers to protect policyholders, creditors and the public.

“FHH’s 2015 annual filings revealed that the company is below the minimum level required by law with no prospects of making up the deficit,” the Insurance Division said in a press release Thursday, adding that the company had been working with the state’s examination team before the 2015 annual filing, but missed several key deadlines.

“This is a regrettable situation. However, once we determined the degree of the existing financial hazard, the decision was made to protect the policyholders and creditors,” Ito said. “Falling below statutory solvency requirements compelled this liquidation action. Further delay would only increase the risk of loss and jeopardize FHH’s policyholders’ access to health care and providers under their plans.”

Family Health Hawaii insures roughly 420 employer groups and does not offer individual plans.