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Hawaii2026Enacted

SB2043

Rules for Checking Captive Insurance Companies

Last scannedAug 24, 2026, 11:30 PM

In one sentence

This law sets new rules about how often the state checks certain insurance companies called captive insurers, starting in 2032.

What it does

  • Until December 31, 2031, most captive insurance companies must be checked no later than five years after getting their license and at any other time if the Insurance Commissioner decides it is needed.
  • Starting January 1, 2032, these same companies must be checked at least once every five years.
  • Risk retention captive insurance companies must be checked within three years of starting up and then at least once every five years after that.
  • Captive insurance companies can ask for permission to skip a check if they have passed one exam before, file all required reports on time, promise to follow the rules, and show good cause.
  • If granted, this permission lasts no longer than five years.
  • The Insurance Commissioner must send a report about these changes to the Legislature before the 2031 Regular Session.

Who it affects

  • Captive insurance companies that are not risk retention captive insurance companies
  • Risk retention captive insurance companies
  • Branch captive insurance companies located in Hawaii
  • The Insurance Commissioner and their staff

Limits and unknowns

  • The law does not say exactly how many companies will successfully get an exemption.
  • It is unclear what specific reasons count as 'good cause' for getting an exemption, other than meeting the listed requirements.

Plain language

Terms to know

captive insurance company
An insurance company that is owned by its policyholders instead of outside investors.
risk retention captive insurance company
A specific type of captive insurer that must be checked within three years of starting up and then at least once every five years after that.
exemption from examination
Official permission for a company to skip having its records checked during a set time period if it meets specific rules.

Official record

Sources

Validated
Official bill pageIntroduced textCurrent bill textStored full record

Official summary

RELATING TO INSURANCE. Insurance Commissioner; Insurance; Captive Insurance Companies; Examinations; Report Until 12/31/2031, specifies that captive insurance companies that are not risk retention captive insurance companies are subject to examination no later than five years after licensure and any additional examination at the discretion of the Insurance Commissioner. On or after 1/1/2032, subjects captive insurance companies that are not risk retention captive insurance companies to examination at least once every five years. Requires the Insurance Commissioner to submit a report to the Legislature before the Regular Session of 2031. Effective 7/1/2026. (CD1)

Official activity

Bill history

  1. Act 255, on 07/14/2026 (Gov. Msg. No. 1357).H
  2. Act 255, 07/14/2026 (Gov. Msg. No. 1357).S
  3. Enrolled to Governor.S
  4. Received notice of passage on Final Reading in House (Hse. Com. No. 888).S
  5. Received notice of Final Reading (Sen. Com. No. 816).H
  6. Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).H
  7. Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.S
  8. Forty-eight (48) hours notice Wednesday, 05-06-26.H
  9. Reported from Conference Committee (Conf Com. Rep. No. 46-26) as amended in (CD 1).H
  10. 48 Hrs. Notice (as amended CD 1) 05-06-26.S
  11. Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 46-26).S
  12. The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Matayoshi, Grandinetti, Pierick; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.H
  13. The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 2 Aye(s): Senator(s) Keohokalole, Lamosao; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Awa.S
  14. Conference committee meeting to reconvene on 04-28-26 2:30PM; Conference Room 224.S
  15. Bill scheduled for Conference Committee Meeting on Monday, 04-27-26 2:30PM in conference room 224.H
  16. Received notice of Senate conferees (Sen. Com. No. 724).H
  17. Senate Conferees Appointed: Keohokalole Chair; Lamosao Co-Chair; Awa.S
  18. Received notice of appointment of House conferees (Hse. Com. No. 800).S
  19. House Conferees Appointed: Matayoshi Chair; Grandinetti, Pierick.H
  20. Received notice of disagreement (Sen. Com. No. 564).H

Changes

Amendments

3 stored

CD1

This amendment changes how often captive insurance companies in Hawaii must be checked by regulators, allowing flexible inspections until 2031 before returning to a strict five-year schedule.

HD1

This amendment changes how often captive insurance companies in Hawaii must be checked by regulators, making the schedule flexible until 2031 before returning to a fixed five-year rule.

SD1

This amendment creates a new rule allowing certain captive insurance companies in Hawaii to apply for up to five years without an official government inspection if they meet specific safety and reporting requirements.