REPORT TITLE:
Captive Insurance


DESCRIPTION:
Permits captive insurance companies to provide personal motor
vehicle or homeowner's insurance coverage or any component
thereof.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3190
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO CAPTIVE INSURANCE. 


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

 1      SECTION 1.  Section 431:19-102, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  Any captive insurance company, when permitted by its
 
 4 articles of association or charter, may apply to the commissioner
 
 5 for a license to do any and all insurance set forth in subsection
 
 6 (h); provided that:
 
 7      (1)  No pure captive insurance company may insure any risks
 
 8           other than those of its parent and affiliated
 
 9           companies;
 
10      (2)  No association captive insurance company may insure any
 
11           risks other than those of the member organizations of
 
12           its association, and their affiliated companies;
 
13     [(3)  No captive insurance company may provide personal motor
 
14           vehicle or homeowner's insurance coverage or any
 
15           component thereof, other than as employee benefits for
 
16           the employees of a parent, association, or its members,
 
17           and their respective affiliated companies;] and
 
18     [(4)] (3)  No captive insurance company may accept or cede
 
19           reinsurance except as provided in section 431:19-111."
 

 
Page 2                                                     3190
                                     S.B. NO.           
                                                        
                                                        

 
 1      SECTION 2.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 3.  This Act shall take effect upon its approval.
 
 4 
 
 5                       INTRODUCED BY:  ___________________________