Chapter 431 — Chapter 431

§431:16-202 Purpose. (a) The purpose of this part is to protect, subject to certain limitations, the persons specified in section 431:16-203 against failure in the performance of contractual obligations, under life and accident and health or sickness insurance policies and annuit…

§431:16-203 Coverage and limitations. (a) This part shall provide coverage for the policies and contracts specified in subsection (b) to: (c) The benefits for which the association may become liable shall in no event exceed the lesser of: (d) In no event shall the association be …

§431:16-204 Construction. This part shall be liberally construed to effect the purpose under section 431:16-202 which shall constitute an aid and guide to interpretation. [L 1987, c 347, pt of §2]

§431:16-205 Definitions. As used in this part: "Account" means any of the three accounts created under section 431:16-206(a). "Association" means the Hawaii life and disability insurance guaranty association created under section 431:16-206. "Authorized assessment" or "authorized…

§431:16-206 Creation of the association. (a) There is created a nonprofit legal entity to be known as the Hawaii life and disability insurance guaranty association. All member insurers shall be and remain members of the association as a condition of their authority to transact in…

§431:16-207 Board of directors. (a) The board of directors of the association shall consist of not less than five nor more than nine member insurers serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the…

§431:16-208 Powers and duties of the association. (a) If a member insurer is an impaired insurer, the association may, in its discretion, and subject to any conditions imposed by the association that do not impair the contractual obligations of the impaired insurer, that are appr…

§431:16-209 Assessments. (a) For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the member insurers, separately for each account, at such time and for such amounts as the board finds necessar…

§431:16-210 Plan of operation. (b) All member insurers shall comply with the plan of operation. (c) The plan of operation shall, in addition to requirements enumerated elsewhere in this part: (d) The plan of operation may provide that any or all powers and duties of the associati…

§431:16-211 Duties and powers of the commissioner. [(a)] In addition to the duties and powers enumerated elsewhere in this part, the commissioner shall: (b) The commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in thi…

§431:16-212 Prevention of insolvencies. (a) To aid in the detection and prevention of insurer insolvencies or impairments, it shall be the duty of the commissioner: (b) The commissioner may seek the advice and recommendations of the board of directors concerning any matter affect…

§431:16-213 Credits for assessments paid. (a) A member insurer may offset against its premium tax liability (or liabilities) to this State an assessment described in section 431:16-209(h) to the extent of twenty per cent of the amount of such assessment for each of the five calen…

§431:16-214 Miscellaneous provisions. (a) Nothing in this part shall be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability. (b) Records shall be kept of all meetings of the …

§431:16-215 Tax exemptions. The association shall be exempt from payment of all fees and all taxes levied by this State or any of its subdivisions, except taxes levied on real property. [L 1987, c 347, pt of §2]

§431:16-216 Immunity. There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer or its agents or employees, the association or its agents or employees, members of the board of directors, or the commissioner or the commi…

§431:16-217 Stay of proceedings; reopening default judgments. All proceedings in which the insolvent insurer is a party in any court in this State shall be stayed one-hundred eighty days from the date an order of liquidation, rehabilitation, or conservation is final to permit pro…

§431:16-218 Prohibited advertisement of association act in insurance sales; notice to policyholders. (a) No person, including an insurer, and a producer or affiliate of an insurer, shall make, publish, disseminate, circulate, or place before the public, or cause directly or indir…

§431:16-219 REPEALED. L 2012, c 250, §13.

ARTICLE 17 INSURANCE INFORMATION PROTECTION ACT--REPEALED §§431:17-101 to 431:17-106 REPEALED. L 1993, c 339, §8.

ARTICLE 19 CAPTIVE INSURANCE COMPANIES PART I. GENERAL PROVISIONS §431:19-101 Definitions. As used in this article: "Administrator" means the captive insurance administrator established in section 431:19-101.5. "Affiliated entity" means any company, person, or other entity in the…

§431:19-101.2 Confidential treatment. (a) Except as otherwise provided in this section, all nonpublic information in a captive insurance company's application for licensure, its business plan, or of its parent or the parent's member organizations, and all other nonpublic informat…

§431:19-101.3 REPEALED. L 2012, c 253, §23.

§431:19-101.8 Captive insurance administrative fund. (a) The commissioner may establish a separate fund designated as the captive insurance administrative fund to be expended by the commissioner to carry out the commissioner's duties and obligations under this article. (b) All mo…

§431:19-102 Certificate of authority. (a) When permitted by an applicant captive insurance company's organizational documents, the applicant captive insurance company may apply to the commissioner for a certificate of authority to do any and all insurance set forth in subsection …

§431:19-102.2 Personal lines insurance. (a) A captive insurance company may be licensed to provide personal lines coverage for unrelated risks if the commissioner deems that extraordinary circumstances exist whereby coverage would be appropriate and in the best interest of the pu…

§431:19-102.3 Redomestication; approval as a domestic captive insurer. (a) Any foreign or alien captive insurance company may become a domestic captive insurance company by meeting the following requirements: (b) Upon issuance of the certificate of general good by the commissione…

§431:19-102.5 REPEALED. L 2000, c 67, §3.

§431:19-103 Names of companies. (a) No captive insurance company shall adopt a name that is the same, deceptively similar, or likely to be confused with or mistaken for any other existing business name registered in the State. (b) A captive insurance company shall apply to the de…

§431:19-104 Minimum capital and surplus. (a) Each captive insurance company licensed pursuant to this article shall possess and thereafter maintain unimpaired capital and surplus in the amount established by the commissioner; provided that: (b) Minimum required capital and surplu…

§431:19-105 REPEALED. L 2007, c 232, §10.

§431:19-106 Formation of captive insurance companies in this State. (a) A captive insurance company shall be: (b) Before the required organizational documents are transmitted to the department of commerce and consumer affairs, the incorporators or organizers shall petition the co…

§431:19-106.3 REPEALED. L 2008, c 190, §7.

§431:19-106.5 Conversion or merger of captive insurers. (a) Subject to this section, a captive insurance company domiciled in the State may be converted into, or merged with, a different form of captive insurer under this article. (b) A plan of conversion or merger shall be submi…

§431:19-107 Financial statements and other reports. (a) Each captive insurance company other than a risk retention captive insurance company shall submit to the commissioner financial statements reporting the financial condition and the results of operations of the insurer writte…

§431:19-108 Examinations, investigations, and financial surveillance. (a) The commissioner or any authorized examiner may conduct an examination, investigation, or financial surveillance of any captive insurance company as often as the commissioner deems appropriate; provided tha…

§431:19-109 Grounds and procedures for suspension and revocation of certificate of authority; fines. (a) The commissioner may suspend or revoke the certificate of authority of a captive insurance company to do business in this State or impose a fine of not less than $100 nor more…

§431:19-110 Investments. (a) Except for risk retention captive insurance companies, captive insurance companies licensed under this article shall be allowed to maintain investments in accordance with a strategic investment policy adopted and monitored by the captive insurance com…

§431:19-111 Reinsurance. (a) Any captive insurance company may provide reinsurance on risks ceded by any other insurer only upon approval of the reinsurance agreement by the commissioner. (b) Any captive insurance company may take credit for reserves on risks ceded to a reinsurer…

§431:19-111.5 Class 5 companies. (a) A class 5 company under this article is one that is not a class 1 company, class 2 company, class 3 company, or class 4 company, and acts only as a reinsurer or excess insurer, or both. Notwithstanding any other provision of this article, a cl…

§431:19-112 Rating organizations; memberships. No captive insurance company shall be required to join a rating organization. [L 1987, c 347, pt of §2]

§431:19-113 Exemption from compulsory associations. No captive insurance company shall be permitted to join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this State, except as provided under chapter 386, nor shall any captive insuranc…

§431:19-114 Rules. The commissioner may adopt rules pursuant to chapter 91 to implement this article. [L 1987, c 347, pt of §2]

§431:19-115 Laws applicable. (a) No insurance laws of this State other than those contained in this article, article 15, or specifically referenced in this article shall apply to captive insurance companies; provided that: (b) If any of the laws specified in this section are inco…

§431:19-115.5 Applicability of other laws to captive insurance companies writing motor vehicle insurance policies in this State. Captive insurance companies writing motor vehicle insurance policies in this State shall be subject to sections 431:10C-102, 431:10C-103, 431:10C-107, …

§431:19-115.7 Applicability of other laws to captive insurance companies writing direct workers' compensation insurance policies. Captive insurance companies writing direct workers' compensation insurance policies pursuant to chapter 386 may be subject to article 15 if the captiv…

§431:19-116 Taxation. (a) Each captive insurance company licensed to do business in this State shall pay to the director of finance through the commissioner a tax on gross premiums on or before March 1 of each year, as follows: provided that the annual maximum aggregate tax on gr…

§431:19-203 Definitions. For purposes of this part: "Counterparty" means the insurer that cedes risk to a special purpose financial captive insurance company which, unless otherwise approved by the commissioner, shall be the parent or an affiliated entity of the special purpose f…

§431:19-204 Certificate of authority. (a) Any special purpose financial captive insurance company, when permitted by its organizational documents, may apply to the commissioner for a certificate of authority to transact insurance or reinsurance business as authorized in this part…

§431:19-209 Authorized contracts and agreements. (a) A special purpose financial captive insurance company shall insure only the risks of a counterparty and shall not issue a contract for assumption of risk or indemnification of loss other than a special purpose financial captive…

§431:19-303 Protected cells. A sponsored captive insurance company formed and licensed under this article may establish and maintain one or more protected cells to insure risks of one or more participants, subject to the following: