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SB1050
THE SENATE
S.B. NO.
1050
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to insurance
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1
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Section 431:19-108, Hawaii Revised Statutes,
is amended to read as follows:
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"
�431:19-108
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Examinations, investigations, and financial
surveillance[
.
]
; certificate of exemption.
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(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 that, unless
exempt or
the commissioner requires otherwise:
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(1)
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An examination shall be conducted at
least once every five years for all captive insurance companies, except as
provided in paragraph (2); and
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(2)
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An examination of a risk retention
captive insurance company shall be conducted no later than three years after
its formation and at least once every five years thereafter.
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The commissioner or any authorized examiner
shall thoroughly inspect and examine the captive insurance company's affairs to
ascertain its financial condition, its ability to fulfill its obligations, and
whether it has complied with this article.
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(b)
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The powers, authorities, and duties relating to examinations vested in
and imposed upon the commissioner under section 431:2-301 through section
431:2-307.5 of the code are extended to and imposed upon the commissioner in
respect to examinations of captive insurance companies.
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(c)
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All examination reports, preliminary examination reports or results,
working papers, recorded information, documents, and copies thereof produced
by, obtained by, or disclosed to the commissioner or any person in the course
of an examination made under this section are confidential and are not subject
to subpoena and may not be made public by the commissioner or an employee or
agent of the commissioner without the written consent of the company, except to
the extent provided in this subsection.
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Nothing in this subsection shall prevent the commissioner from using
information in furtherance of the commissioner's regulatory authority under
this title.
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The commissioner may grant
access to the information to public officers having jurisdiction over the
regulation of insurance in any other state or country, or to law enforcement
officers of this State or any other state or agency of the federal government
at any time, so long as the officers receiving the information agree in writing
to hold it in a manner consistent with this section.
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(d)
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Each branch captive insurance company shall file annually with the
commissioner a certificate of compliance issued by the insurance regulatory
authority of the jurisdiction in which the outside captive insurance company of
the branch captive insurance company is domiciled along with certified copies
of any examination reports conducted of the outside captive insurance company
by its domiciliary insurance regulator during the preceding calendar year.
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These filings shall be made with the
commissioner by March 1 of each year.
�
So
long as the branch captive insurance company complies with the requirements of
this subsection, and unless otherwise deemed necessary by the commissioner, any
examination of the branch captive insurance company under this subsection shall
be only with respect to the business underwritten by the branch captive
insurance company in this State.
�
If
necessary, however, the commissioner may examine the outside captive insurance
company of any branch captive insurance company licensed under this article.
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(e)
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Except for a risk retention captive insurance company, a captive
insurance company may apply to the commissioner for a certificate of exemption
from examination; provided that the captive insurance company applicant has:
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(1)
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Satisfactorily completed at least
one examination under this section;
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(2)
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Filed and continues to file
all financial statements and other reports and otherwise complies with all
other provisions of this article; and
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(3)
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Demonstrated other good cause
supporting its application for exemption from further examination.
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(f)
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If the commissioner is satisfied with the
captive insurance company's application, the commissioner may issue a
certificate of exemption from examination along with renewals thereof.
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(g)
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Unless previously revoked by the commissioner
for good cause, a certificate of exemption from examination shall be valid for
a term not to exceed five years from its effective date.
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A captive insurance company may apply to the
commissioner for renewal of a certificate of exemption from examination no
earlier than six months before the expiration date of the applicant's
certificate of exemption.
"
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SECTION
2.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION
3.
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This Act shall take effect upon its
approval.
INTRODUCED BY:
_____________________________
Report Title:
Insurance;
Captive Insurance Companies; Insurance Commissioner; Certificate of Exemption;
Examinations
Description:
Allows
captive insurance companies that are not risk retention captive insurance companies
to apply to the Insurance Commissioner for certificates of exemption from
examination after meeting certain requirements.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.