The sale of Hawaiian Insurance & Guaranty Co. cleared its final obstacle yesterday afternoon, allowing Great Northwest Insurance Co. to assume about 20,000 Hawai'i hurricane insurance policies.

The transaction was made possible after the state Insurance Division, Great Northwest and others were able to settle legal disagreements as they met before state Circuit Judge Victoria Marks yesterday afternoon. The different sides were able to resolve conflicts that included the timing of payments and how disputes over premium revenue would be handled.

"This was the final legal hurdle that we had to get over to get this transaction to happen," said state Insurance Commissioner J.P. Schmidt. He said policyholders should be hearing from Great Northwest after the insurer assumes the policies.

The sale ends months of uncertainty for policyholders of Hawaiian Insurance & Guaranty, the state's fourth-largest hurricane insurer. The state took control of HIG at the end of June because of financial problems at the insurer's Alabama-based parent company. HIG would have been shut down today and its policies canceled if a buyer hadn't been found.

A spokesman for Great Northwest wasn't immediately available for comment. The company most likely will have to raise it's relatively low rates, industry observers have said.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.