Bill Text: HI SB1177 | 2011 | Regular Session | Introduced
Bill Title: Captive Insurance Companies
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2011-02-24 - (S) The committee on CPN deferred the measure. [SB1177 Detail]
Download: Hawaii-2011-SB1177-Introduced.html
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THE SENATE |
S.B. NO. |
1177 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to captive insurance companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 431:19-101, Hawaii Revised Statutes, is amended as follows:
1. By amending the definition of "affiliated entity" to read:
""Affiliated
entity" means any company, person, or other entity in the same corporate
system as a parent or a member organization by virtue of common ownership, control,
operation, or management, or, in the case of a pure captive insurance company, a
company, person, or other entity that maintains a working relationship with and
whose risks insured by the pure captive insurance company are [directly or
indirectly controlled by the parent or an affiliate of the parent of a pure
captive insurance company.] similar or related to the other risks of the
parent insured by the pure captive insurance company."
2. By amending the definition of "parent" to read:
""Parent"
means a corporation, limited liability company, partnership, other entity, or
individual, that directly or indirectly [owns, controls, or holds with power
to vote more than fifty per cent of the outstanding voting interests of a pure
captive insurance company organized as a stock corporation, nonprofit
corporation, or limited liability company.] controls and has the power
to direct the management and policies of the pure captive insurance company
through the ownership of voting interests or securities."
SECTION 2. Section 431:19-115, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) No insurance laws of this State
other than those contained in this article, or [contained] stated
in specific references contained in this section or this article, shall
apply to captive insurance companies formed under this article. In addition to
this article, article 1, article 2, sections 431:3-302 to 431:3-304, section
431:3-307, article 4A, parts I and II of article 5, article 6, [article 11,
and] article 15 of this chapter, and chapter 431K shall apply to [captive
insurance companies other than pure captive insurance companies and branch
captive insurance companies,] risk retention captive insurance
companies, unless these other laws are inconsistent with this article or
the commissioner by rule, regulation, or order determines, on a case by case
basis that these other laws [should not] shall or shall not apply
[thereto.
In addition to this article, and except as
otherwise provided in this article, article 1, article 2, article 6, article
11, and article 15 of this chapter shall apply to class 5 companies, unless
these other laws are inconsistent with this article or the commissioner by
rule, regulation, or order determines, on a case by case basis that these other
laws should not apply thereto.
In addition to this article and the articles
or portions thereof referenced in this section, chapter 431K shall apply to
risk retention captive insurance companies authorized under this article]."
SECTION 3. Section 431:19-308, Hawaii Revised Statutes, is amended to read as follows:
"[[]§431:19-308[]]
Applicable laws. A sponsored captive
insurance company shall be subject to this part and to part [II.] I.
If there is any conflict between this part and part [II,] I,
this part shall control."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Captive Insurance Companies
Description:
Expands the types of related entities that may be affiliated with and insured by a pure captive insurance company; clarifies exceptions available to various classes of captive insurance companies; makes housekeeping amendments.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
