Long-Term Care Insurance

Requires nonprofit hospitals and medical service organizations
that offer long-term care insurance to pay assessments to the
life and disability insurance guaranty association and to pay
premium taxes.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 431:16-205, Hawaii Revised Statutes, is
 2 amended by amending paragraph (g) to read as follows:
 3     "(g)  Member insurer means any insurer licensed or who holds
 4           a certificate of authority to transact in this State
 5           any kind of insurance for which coverage is provided
 6           under section 431:16-203, and includes any insurer
 7           whose license or certificate of authority in this State
 8           may have been suspended, revoked, not renewed, or
 9           voluntarily withdrawn, but does not include:
10           (1)  A nonprofit hospital or medical service
11                organization[;], unless and to the extent that the
12                organization offers long-term care insurance;
13           (2)  A health maintenance organization;
14           (3)  A fraternal benefit society;
15           (4)  A mandatory state pooling plan;
16           (5)  A mutual assessment company or any entity that
17                operates on an assessment basis;
18           (6)  An insurance exchange; or
19           (7)  Any entity similar to any of the above."

Page 2                                                     663
                                     H.B. NO.           

 1      SECTION 2.  Section 432:1-102, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "432:1-102  Applicability of other laws.(a)  Part III of
 4 article 10A of chapter 431 shall apply to nonprofit medical
 5 indemnity or hospital service associations.  Such associations
 6 shall be exempt from the provisions of part I of article 10A;
 7 provided that such exemption is in compliance with applicable
 8 federal statutes and regulations.
 9      (b)  Article 2 and article 13 of chapter 431, and the powers
10 there granted to the commissioner, shall apply to managed care
11 plans, health maintenance organizations, or medical indemnity or
12 hospital service associations, which are owned or controlled by
13 mutual benefit societies, so long as such application in any
14 particular case is in compliance with and is not preempted by
15 applicable federal statutes and regulations.
16      (c)  Long-term care insurance.  Part II of article 7 and
17 article 16 of chapter 431 shall apply to a nonprofit medical
18 indemnity association or hospital service association to the
19 extent that the association offers long-term care insurance."
20      SECTION 3.  Statutory material to be repealed is bracketed.
21 New statutory material is underscored.

Page 3                                                     663
                                     H.B. NO.           

 1      SECTION 4.  This Act shall take effect upon its approval.
 3                           INTRODUCED BY:  _______________________