Title 24, Insurance

§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, …

[§431:19-115.6] Applicability of other laws to captive insurance companies writing credit life or other credit disability insurance policies. Captive insurance companies writing credit life or credit disability policies in this State shall be subject to sections 431:10B-101 throu…

§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…

[§431:19-117] Dormant captive insurance companies. (a) A captive insurance company may apply to the commissioner for a certificate of dormancy and the commissioner may grant a certificate of dormancy. The certificate of dormancy shall be subject to renewal every five years and sh…

PART II. SPECIAL PURPOSE FINANCIAL CAPTIVE INSURANCE COMPANIES [§431:19-201] Purpose. This part provides for the creation of special purpose financial captive insurance companies for the exclusive purpose of facilitating the securitization of one or more risks as a means of acces…

[§431:19-202] Applicable law. (a) A special purpose financial captive insurance company shall be subject to the provisions of this part and to part I. If there is any conflict between this part and part I, this part shall control. (b) A special purpose financial captive insurance…

§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…

[§431:19-205] Changes in plan of operation; voluntary dissolution or cessation of business. (a) Any change in the special purpose financial captive insurance company's plan of operation shall require the prior approval of the commissioner. (b) Any transaction or series of transac…

[§431:19-206] Formation. (a) A special purpose financial captive insurance company may be incorporated as a stock corporation, limited liability company, mutual association, partnership, or other form of organization approved by the commissioner. (b) A special purpose financial c…

[§431:19-207] Minimum capital and surplus. A special purpose financial captive insurance company shall not be issued a license unless it possesses and thereafter maintains unimpaired capital and surplus of not less than $250,000 in the form of cash or other assets approved by the…

[§431:19-208] Issuance of securities. (a) A special purpose financial captive insurance company may issue securities, as defined in section 485A-102, subject to and in accordance with its approved plan of operation and its organizational documents. (b) A special purpose financial…

§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…

[§431:19-210] Disposition of assets; investments. (a) The assets of a special purpose financial captive insurance company shall be preserved and administered by or on behalf of the special purpose financial captive insurance company to satisfy the liabilities and obligations of t…

[§431:19-211] Annual reporting; books and records. (a) For purposes of section 431:19-107(a), the commissioner may require any appropriate or necessary modification or supplemental or additional information to be filed with the required financial statements. (b) Unless otherwise …

[§431:19-212] Suspension and revocation of certificate of authority. (a) The commissioner shall notify a special purpose financial captive insurance company not less than thirty days before suspending or revoking its certificate of authority pursuant to section 431:19-109, which …

[§431:19-213] Supervision, rehabilitation, liquidation. (a) Except as otherwise provided in this part, article 15 shall apply in full to a special purpose financial captive insurance company. (b) Upon any order of supervision, rehabilitation, or liquidation of a special purpose f…

[§431:19-214] Existing licenses. Except as otherwise determined by the commissioner, a captive insurance company, that has been issued a certificate of authority by the commissioner pursuant to section 431:19-102 as of July 1, 2008, and is engaged in or will be engaged in an insu…

Part III. SPONSORED CAPTIVE INSURANCE COMPANIES [§431:19-301] Formation. (a) One or more sponsors may form a sponsored captive insurance company under this part. In addition to the general provisions of this article, the provisions of this part shall apply to sponsored captive in…

[§431:19-302] Supplemental application materials. In addition to the information required in section 431:19-102(c) and (d), each sponsored captive insurance company applicant that segregates the risks of its participants through one or more protected cells shall file with the com…

§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:

§431:19-304 Qualification of sponsors. A sponsor of a sponsored captive insurance company shall be an insurer licensed under laws of any state, a reinsurer authorized or approved under the laws of any state, a captive insurance company formed or licensed under this article, or an…

§431:19-305 Participants in sponsored captive insurance companies. (a) Associations, corporations, limited liability companies, partnerships, trusts, risk retention groups, and other business entities may be participants in any sponsored captive insurance company formed or licens…

[§431:19-306] Investments by sponsored captive insurance companies. Notwithstanding section 431:19-303, the assets of two or more protected cells may be combined for purposes of investments, and the combination shall not be construed as defeating the segregation of the assets for…

[§431:19-307] Delinquency of sponsored captive insurance companies. In the case of a sponsored captive insurance company, article 15 shall apply; provided that:

§431:19-308 Applicable laws. A sponsored captive insurance company shall be subject to this part and to part I. If there is any conflict between this part and part I, this part shall control. [L 2008, c 190, pt of §1; am L 2012, c 253, §21]

§431:19-309 Existing licenses. Except as otherwise determined by the commissioner, a captive insurance company that has been issued a certificate of authority by the commissioner pursuant to section 431:19-102 as of July 1, 2008, and is licensed as a class 4 company shall not be …

ARTICLE 2 ADMINISTRATION OF INSURANCE LAWS PART I. INSURANCE DIVISION §431:2-101 Insurance division. The insurance division is established within the department of commerce and consumer affairs. [L 1987, c 347, pt of §2]

§431:2-102 Insurance commissioner. (a) The insurance division shall be under the supervision and control of an administrator who shall be known as the insurance commissioner. The director of commerce and consumer affairs shall, with the approval of the governor, appoint the insur…

§431:2-103 Salary. The salary of the commissioner shall be set by the director of commerce and consumer affairs but shall not be more than the maximum salary of first deputies to department heads. [L 1987, c 347, pt of §2]

§431:2-104 Seal. The official seal of the commissioner shall be a vignette of King Kamehameha I, with the words "Insurance Commissioner, State of Hawaii" surrounding the vignette. Any certificate or license issued by the commissioner shall bear the commissioner's official seal. […

§431:2-105 Deputies, employees. (a) There shall be a chief deputy commissioner, who shall be subject to chapter 76. The chief deputy commissioner shall have the power to perform any act or duty assigned by the commissioner. If a commissioner has not been appointed, the chief depu…

§431:2-105.5 Staff. There are established within the insurance division of the department of commerce and consumer affairs six positions for technical staff, and three positions for clerical staff, necessary to enable the State to meet and maintain National Association of Insuran…

§431:2-106 Ethical requirements for insurance division staff. The commissioner, deputies and employees of the insurance division shall not represent, be employed by, own any securities of, be a creditor of, or be financially interested in any other manner in, any insurer authoriz…