Hawaii Administrative Code

(a) Pursuant to section 431:4A-101(d), HRS, the commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer which, as of the date of the ceding insurer's statutory financial statement, maintains a trust fund in an amount prescribed below in …

(a) Pursuant to section 431:4A-101(e), HRS, the commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that has been certified as a reinsurer in this State at all times for which statutory financial statement credit for reinsurance is c…

Pursuant to section 431:4A-101(g), HRS, the commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of section 431:4A-101(b), (c), (d), (e), (f), or (g), HRS, but only with respect to the insurance of risks l…

(a) Pursuant to section 431:4A-102, HRS, the commissioner shall allow a reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of section 431:4A-101, HRS, in an amount not exceeding the liabilities carried by the c…

(a) A risk retention captive may qualify for credit for reinsurance on risks ceded to a reinsurer if: (1) The reinsurer maintains an A- or higher A.M. Best rating or other comparable rating from a nationally recognized statistical rating organization, the reinsurer maintains a mi…

(a) A captive shall require its independent certified public accountant to immediately notify the captive's governing body or audit committee in writing of any determination by the independent certified public accountant that the captive has materially misstated its financial con…

(a) Whenever the commissioner deems the financial condition or change in business plan of a captive warrants additional security, the commissioner may require the captive to deposit with the commissioner, in trust for the captive, cash, securities approved by the commissioner, or…

(a) Each captive shall require its independent certified public accountant to make available for review by the commissioner or appointed agent work papers prepared in the conduct of the annual statement and the audit of the captive. The captive shall require that the independent …

(a) The captive shall maintain accurate, legible, and complete original, photocopied, or electronic records of the captive's operations in its principal office in Hawaii or another Hawaii location designated by the captive and approved by the commissioner. Upon the request of the…

(a) Reinsurance under this section shall be effected through a written agreement of reinsurance setting forth the terms, provisions, and conditions governing the reinsurance. (b) A risk retention captive: (1) Shall qualify for credit for reinsurance on risks ceded to a reinsurer …

(a) The captive shall provide written notice and obtain prior approval from the commissioner for any change in ownership or material change to the captive's business plan or plan of operation that was filed with the commissioner upon application or as otherwise required by statut…

(a) The commissioner may by order fine, suspend or revoke the license of a captive or any combination of these actions:(1) For any reason provided in section 431:19-109, Hawaii Revised Statutes; or (2) Pursuant to the captive's request. (b) In case of suspension or revocation, th…

(a) A captive may provide surety insurance under a business plan approved by the commissioner, provided that the captive maintains a ratio no greater than ten to one of the total value of outstanding bond obligations to unimpaired capital and surplus. For purposes of this subsect…

For purposes of this chapter: "Adverse financial condition" means one or more of the following conditions: (1) The impairment of capital resulting from an imbalance of liabilities and assets; (2) Financial ratios exceeding levels established by the commissioner, if any; or (3) Th…

Notes Haw. Code R. § 16-17-5 R 3/12/01 The amended version of this section by Hawaii Administrative Rules Listing of Filings, 2016-01, August, eff.8/18/2016 is not yet available.

(a) Each applicant captive shall pay to the commissioner a nonrefundable application fee of $1,000 for examining, investigating, and processing its license application. Upon approval of the application for a certificate of authority, the applicant captive shall pay to the commiss…

(a) Captive insurance companies subject to examination, investigation, or financial surveillance shall be responsible for the payment of expenses associated with the examination, investigation, or financial surveillance. Examination, investigation, and financial surveillance expe…

(a) Every insurer domiciled in this State shall file a report with the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements or material new ceded reinsurance agreements affect…

(a) Materiality. No acquisitions or dispositions of assets need be reported pursuant to section 16-170-1 if the acquisitions or dispositions are not material. For purposes of this chapter, a material acquisition (or the aggregate of any series of related acquisitions during any t…

(a) Materiality and scope. (1) No nonrenewals, cancellations, or revisions of ceded reinsurance agreements or new ceded reinsurance agreements affecting in force life insurance business need be reported pursuant to section 16-170-1 if the nonrenewals, cancellations, or revisions …

As used in this chapter: "Material transaction" means an insurer's acquisition or disposition of assets or the nonrenewal, cancellation, or revision of a ceded reinsurance agreement or a new ceded reinsurance agreement affecting in force life insurance business. A material transa…

As used in this chapter: "Administrative costs" means all costs incident to the management, supervision, or conduct of the insurance division and supporting offices and divisions, including, but not limited to, programs of the insurance division, professional, technical, and pers…

This chapter shall apply to all insurers or entities regulated under title 24, who are subject to the assessment in section 431:2-215, HRS. Notes Haw. Code R. § 16-175-2 [Eff 2/16/02] (Auth: HRS § 431:2-201) (Imp: HRS § 431:2-215)

(a) An insurer or entity regulated under title 24 and subject to the provisions of section 431:2-215, HRS, shall pay an assessment as determined by the commissioner. The assessment shall be based upon criteria consisting of an insurer's or entity's market share percentage of the …

Chapter 431P, Hawaii Revised Statutes, established the hurricane reserve trust fund, which is funded, in part, by a special mortgage recording fee. This chapter establishes guidelines for the special mortgage recording fee. Notes Haw. Code R. § 16-178-1 [Eff 2/13/98] (Auth: HRS §…

As used in this chapter, unless the context otherwise requires: "Additional charge mortgage" means a mortgage which increases the principal amount of the secured debt owed to the mortgagee that holds an existing mortgage on the property described in that mortgage and which is rec…

(a) The SMRF shall be an amount equal to one-tenth of one per cent of the stated principal amount of the debt secured by the mortgage or, in the case of an amendment of a mortgage, one-tenth of one per cent of the increase of the stated principal amount of the debt, if any. For e…

(a) The SMRF transmittal form shall be used to pay the SMRF, and may be obtained from the bureau of conveyances at 1151 Punchbowl Street, Room 120. Although the SMRF applies to documents recorded in the bureau of conveyances of the State or filed with the assistant registrar of t…

(a) The SMRF is not applicable to a document which does not constitute a mortgage. These documents include, but shall not be limited to:(1) A document confirming, amending, or correcting a mortgage without an increase in the debt; (2) An assumption of a mortgage; (3) A negative p…

The purpose of this chapter is to prescribe the form and content of the summary document disclaimer pursuant to section 431:16-218(c) and the written notice pursuant to section 431:16-218(d). Notes Haw. Code R. § 16-18-1 [Eff 3/12/92] (Auth: HRS § 431:2-201) (Imp: HRS § 431:16-21…

(a) The Hawaii Life and Disability Insurance Guaranty Association (Guaranty Association) shall submit the summary document to the commissioner for approval before the document may be delivered to policyholders. Upon receiving approval from the commissioner, the Guaranty Associati…

(a) The contents of the disclaimer described in section 431:16-218(c) shall read as follows: "The Hawaii Life and Disability Insurance Guaranty Association may not provide coverage for this policy. If coverage is provided, it may be subject to substantial limitations or exclusion…

(a) This written notice shall only apply to section 431:16-203(b)(2)(A). The wording of the written notice described in section 431:16-218(d) shall be identical to that prescribed in Exhibit B, dated September 1991, located at the end of this chapter and made a part of this secti…

(a) The insurer or group of insurers shall establish an internal audit function providing independent, objective, and reasonable assurance to the audit committee and insurer management regarding the insurer's governance, risk management, and internal controls This assurance shall…

(a) The purpose of this chapter is to improve the surveillance of the financial condition of insurers by requiring the following:(1) An annual audit of financial statements reporting the financial position and the results of operations of insurers by independent certified public …

As used in this chapter: "Accountant" or "independent certified public accountant" means a person or accounting firm licensed in good standing with the American Institute of Certified Public Accountants and in all states in which the accountant or independent certified public acc…

(a) All insurers required by this chapter to file an annual audit by an independent certified public accountant shall file an audited financial report with the commissioner on or before June 1 for the year ended December 31 immediately preceding The commissioner may require an in…

The annual audited financial report shall report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows, and changes in capital and surplus for the year then ended in conformity with statutory accounting …

(a) Each insurer required by this chapter to file an annual audited financial report shall within sixty days after becoming subject to this requirement, register with the commissioner in writing the name and address of the independent certified public accountant or accounting fir…

(a) The commissioner shall not recognize a person or firm as a qualified independent certified public accountant if the person or firm: (1) Is not in good standing with the American Institute of Certified Public Accountants and in all states in which the accountant is licensed to…

An insurer may make written application to the commissioner for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies that utilizes a pooling or one h…

(a) Financial statements furnished pursuant to section 16-185-104 shall be examined by the independent certified public accountant. (b) The audit of the insurer's financial statements shall be conducted in accordance with generally accepted auditing standards. In accordance with …

(a) The insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report, in writing, within five business days to the board of directors or its audit committee, any determination by the independent certified publ…

(a) In addition to the annual audited financial report, each insurer shall furnish the commissioner with a written communication as to any unremediated material weaknesses in its internal control over financial reporting noted during the audit Such communication shall be prepared…

The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating: (a) That the accountant is independent with respect to the insurer and conforms to the standards of the accounting profession, a…

(a) Workpapers are the records kept by the independent certified public accountant of the procedures followed, the tests performed, the information obtained, and the conclusions reached pertinent to the accountant's audit of the financial statements of an insurer. Accordingly, wo…

(a) This section shall not apply to foreign or alien insurers licensed in this State or an insurer that is a SOX compliant entity or a direct or indirect wholly-owned subsidiary of a SOX compliant entity. (b) The audit committee shall be directly responsible for the appointment, …

(a) No director or officer of an insurer shall, directly or indirectly: (1) Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review, or communication required under this chapter; or (2) Omit to state, or cause anot…

(a) Every insurer required to file an audited financial report that has annual direct written and assumed premiums, excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of $500,000,000 or more shall prepare a report of the insurer's …

(a) Upon written application of any insurer, the commissioner may grant an exemption from compliance with any or all provisions of this chapter if the commissioner finds, upon review of the application, that compliance with this chapter would constitute a financial or organizatio…