Report Title:

Dental Insurance; Regulation

 

Description:

Regulates dental health insurers under the Insurance Code. Phases in capital and surplus requirements for dental insurers. Repeals Dental Service Corporations Act and Dental Service Organizations Act. (SD1)

THE SENATE

S.B. NO.

589

TWENTY-FIRST LEGISLATURE, 2001

S.D. 1

STATE OF HAWAII

  

 

A BILL FOR AN ACT

 

relating to dental insurance.

 

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

SECTION 1. Section 431:1-205, Hawaii Revised Statutes, is amended to read as follows:

"§431:1-205 Disability insurance defined. Disability insurance, also referred to as accident and sickness insurance, is insurance against bodily injury, disablement, or death by accident, or accidental means, or the expense thereof; against disablement or expense resulting from sickness[;] or dental health care; and every insurance appertaining thereto."

SECTION 2. Section 431:3-207, Hawaii Revised Statutes, is amended to read as follows:

"§431:3-207 Noncompliance as to capital stock and surplus permitted certain insurers [for five years]. (a) A domestic or foreign insurer holding a valid certificate of authority to transact insurance in this State as of July 1, 1988, for a period of five years after that date, may continue to transact the kinds of insurance permitted by the certificate of authority by complying with this code and by maintaining unimpaired not less than the same amount of paid-in capital stock or surplus, if a mutual or reciprocal insurer, as required under the laws of this State immediately prior to July 1, 1988, and as if the laws had continued in force. After the five-year period, the insurer shall have and maintain not less than the same amount of paid-in capital stock and surplus as is then required of domestic stock insurers newly formed.

  1. An insurer specified in subsection (a) shall not be granted authority to transact any other or additional kinds of insurance after the five-year period specified unless it then fully complies with the capital and surplus requirements applied to all the kinds of insurance it then proposes to transact, as provided under section 431:3-205 as to new domestic insurers.

(c) The capital and surplus requirements of this chapter for a dental health insurer shall be phased in as follows:

(1) Fifty per cent of the amount required by this chapter by December 31, 2002;

(2) Seventy-five per cent of the amount required by this chapter by December 31, 2003; and

(3) One hundred per cent of the amount required by this chapter by December 31, 2004."

SECTION 3. Chapter 423, Hawaii Revised Statutes, is repealed.

SECTION 4. Chapter 448D, Hawaii Revised Statutes, is repealed.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.