Report Title:
Captive Insurers; Investments
Description:
Allows captive insurers to invest in bonds, certificates, and other obligations of an agency or instrumentality established or chartered by the United States Congress, that are exempt from registration under the Securities Act of 1933, "exempted securities" under the Securities Exchange Act of 1934, and rated "A" or higher by a rating agency recognized by the commissioner. Allows captive insurers to invest in common trust funds and mutual funds described in section 431:6-322, HRS, that are only comprised of public obligations as specified in section 431:6-301, or investments allowed under section 431:19-110(b), or a combination thereof.
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THE SENATE |
S.B. NO. |
1058 |
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TWENTY-SECOND LEGISLATURE, 2003 |
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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:
SECTION 1. Section 431:19-110, Hawaii Revised Statutes, is amended to read as follows:
"§431:19-110 Legal investments. (a) Each captive insurance company shall be subject to the restrictions on allowable investments provided under sections 431:6-101 to 431:6-501, except that pure captive insurance companies may obtain approval from the commissioner for investments that are not specified in the insurance code.
(b) Notwithstanding subsection (a), any captive insurance company may invest any amount of its funds in bonds, certificates, and other obligations of an agency or instrumentality established or chartered by the United States Congress; provided that the bonds, certificates, or obligations are:
(1) Exempt from registration under the Securities Act of 1933 and are "exempted securities" under the Securities Exchange Act of 1934; and
(2) Rated "A" or higher by a rating agency recognized by the commissioner.
(c) Notwithstanding subsection (a), any captive insurance company may invest any amount of its funds in common trust funds and mutual funds as described in section 431:6-322 that are only comprised of public obligations as specified in section 431:6-301, or investments allowed under subsection (b), or a combination thereof.
(d) Investments of a captive insurance company in bonds, certificates, and other obligations described in subsection (b), and in common trust funds and mutual funds described in subsection (c), shall be treated in the same manner as general obligations of the government of the United States or of any state of the United States for purposes of article 6 of this chapter."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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