Bill Text: HI HB881 | 2012 | Regular Session | Introduced
Bill Title: Captive Insurance Companies
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB881 Detail]
Download: Hawaii-2012-HB881-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
881 |
TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to captive insurance companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 431:19-101, Hawaii Revised Statutes, is amended by amending the definitions of "affiliated entity" and "parent" to read as follows:
""Affiliated
entity" means any company, person, or other entity in the same corporate
system as a parent or a member organization by virtue of common ownership,
control, operation, or management, or, in the case of a pure captive insurance
company, that maintains a working relationship with, and whose risks
insured by the pure captive insurance company are [directly or indirectly
controlled by the parent or an affiliate of the parent of a pure captive
insurance company.] similar or related to the other risks of, the parent
insured by the pure captive insurance company.
"Parent"
means a corporation, limited liability company, partnership, other entity, or
individual, that [directly or indirectly owns, controls, or holds with power
to vote more than fifty per cent of the outstanding voting interests of a pure
captive insurance company organized as a stock corporation, nonprofit
corporation, or limited liability company.] directly or indirectly
controls, and has the power to direct or cause the direction of the management
and policies of, the pure captive insurance company through the ownership of
voting interest or securities."
SECTION 2. Section 431:19-115, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) No insurance laws of this State
other than those contained in this article, or contained in specific references
contained in this section or article, shall apply to captive insurance
companies formed under this article. In addition to this article, article 1,
article 2, sections 431:3-302 to 431:3-304, section 431:3-307, article 4A,
parts I and II of article 5, article 6, [article 11,] and article 15 of
this chapter, and chapter 431K, shall apply to [captive insurance
companies other than pure captive insurance companies and branch captive
insurance companies,] risk retention captive insurance companies,
unless these other laws are inconsistent with this article or the commissioner
by rule, regulation, or order determines, on a case by case basis that these
other laws should or should not apply thereto.
[In addition to this article, and except as
otherwise provided in this article, article 1, article 2, article 6, article
11, and article 15 of this chapter shall apply to class 5 companies, unless
these other laws are inconsistent with this article or the commissioner by
rule, regulation, or order determines, on a case by case basis that these other
laws should not apply thereto.
In addition to this article and the articles
or portions thereof referenced in this section, chapter 431K shall apply to
risk retention captive insurance companies authorized under this article.]"
SECTION 3. Section 431:19-308, Hawaii Revised Statutes, is amended to read as follows:
"[[]§431:19-308[]]
Applicable laws. A sponsored captive
insurance company shall be subject to this part and to part [II.] I.
If there is any conflict between this part and part [II,] I, this
part shall control."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
INTRODUCED BY: |
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Report Title:
Captive Insurance Companies
Description:
Provides greater flexibility in determining the types of related entities that may be affiliated with and insured by a pure captive insurance company. Streamlines and simplifies exceptions applicable to various classes of captive insurance companies. Makes other housekeeping amendments.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.