Bill Text: HI SB2765 | 2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Captive Insurance Companies

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-07-10 - (S) Act 253, 7/6/2012 (Gov. Msg. No. 1356). [SB2765 Detail]

Download: Hawaii-2012-SB2765-Amended.html

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STAND. COM. REP. NO.  1210-12

 

Honolulu, Hawaii

                , 2012

 

RE:   S.B. No. 2765

      S.D. 2

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2765, S.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO CAPTIVE INSURANCE COMPANIES,"

 

begs leave to report as follows:

 

     The purpose of this measure is to maintain Hawaii's position as a major captive insurance domicile by updating and streamlining the state's captive insurance company law and ensuring that risk retention captive insurance companies comply with the accreditation standards of the National Association of Insurance Commissioners.

 

     The Department of Commerce and Consumer Affairs supported this bill with amendments.  Strategic Risk Solutions supported the intent of this measure.

 

     After careful consideration, your Committee has amended this bill by:

 

     (1)  Clarifying the definition of "class 1 company" to mean a pure captive insurance company that is designated and licensed in Hawaii to write business only as a reinsurer;

 

     (2)  Clarifying that a domestic captive insurance company may transfer its domicile to any type of jurisdiction, not only a state or country; and

 

     (3)  Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2765, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2765, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

 

		____________________________ ROBERT N. HERKES, Chair