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THE SENATE |
S.R. NO. |
9 |
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TWENTY-SECOND LEGISLATURE, 2003 |
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STATE OF HAWAII |
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requesting an audit of the hawaii employers' mutual insurance company.
WHEREAS, the Hawaii Employers' Mutual Insurance Company (HEMIC) was established to provide workers' compensation coverage to employers of the State at the lowest possible cost while providing the highest level of service; and
WHEREAS, HEMIC was established as an independent corporation with the option of reorganizing as a nonprofit corporation; and
WHEREAS, HEMIC is statutorily excluded or exempt from certain industry requirements such as:
(1) Excluded from the surplus requirements of domestic mutual insurers until December 31, 2007;
(2) Until December 31, 2007, the first $25,000,000 of HEMIC's written premiums in each calendar year is statutorily excluded from any assessments by the Hawaii Hurricane Relief Fund; and
(3) Exempt from contributing to plans, associations, and funds required by the insurance code; and
WHEREAS, from January 1, 1997, HEMIC was required to provide workers' compensation coverage to employers not able to or not electing to purchase coverage in the voluntary insurance market, and not authorized to self-insure; and
WHEREAS, the board of directors is responsible for the organization, management, policies, and activities of the company; and
WHEREAS, all corporate power is bestowed on the board and should be discharged in accordance with the company's purpose; and
WHEREAS, the Hawaii Employers' Mutual Insurance Company Oversight Council oversees the activities of the company to ensure that the company fulfills its purpose as set forth in Hawaii Revised Statutes, chapter 431:14A; and
WHEREAS, the Oversight Council is administratively attached to the Department of Commerce and Consumer Affairs; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2003, that the Office of the State Auditor is requested to conduct a compliance and financial audit of HEMIC; and
BE IT FURTHER RESOLVED that the Office of the State Auditor is requested to report findings and recommendations to the Legislature no later than twenty days before the convening of the Regular Session of 2004; and
BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Office of the State Auditor.
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OFFERED BY: |
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Report Title:
Hawaii Employers' Mutual Insurance Company; Audit