Bill Text: HI HB917 | 2017 | Regular Session | Amended

Hawaii House Bill 917 (Prior Session Legislation)

Bill Title: Relating To Insurance.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Enrolled - Dead) 2017-04-28 - The conference committee deferred the measure. [HB917 Detail]

Download: Hawaii-2017-HB917-Amended.html

HOUSE OF REPRESENTATIVES	H.B. NO.	917
TWENTY-NINTH LEGISLATURE, 2017		H.D. 1
STATE OF HAWAII		S.D. 1

A BILL FOR AN ACT

RELATING TO INSURANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 432:1-407, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Net worth requirements are as follows:

(1) Before issuing a certificate of authority pursuant to section 432:1-301, the commissioner shall require that the mutual benefit society has an initial net worth of $2,000,000 and the society shall thereafter maintain the minimum net worth required under paragraph (2); and

(2) Every mutual benefit society shall maintain a minimum net worth equal to the greater of:

(A) $2,000,000;

(B) Two per cent of gross annual premium revenues as reported on the most recent annual financial statement filed with the commissioner on the first $150,000,000 of gross annual premium revenues and one per cent of gross annual premium revenues on the gross annual premium revenues in excess of $150,000,000; or

(C) An amount equal to eight per cent of the sum of gross annual health care expenditures and operating expenses as reported on the most recent financial statement filed with the commissioner."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2050.

Report Title:

Mutual Benefit Societies; Minimum Net Worth; Requirements

Description:

Clarifies that a mutual benefit society shall maintain a minimum net worth calculated based on gross annual premium revenues and gross annual health care expenditures and operating expenses. Effective 7/1/2050. (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.