HOUSE OF REPRESENTATIVES

H.B. NO.

1306

THIRTIETH LEGISLATURE, 2019

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to insurance.

 

 

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

 


     SECTION 1.  Section 432:1-407, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Net worth requirements are as follows:

     (1)  Before issuing a certificate of authority pursuant to section 432:1-301, the commissioner shall require that the mutual benefit society has an initial net worth of $2,000,000 and the society shall thereafter maintain the minimum net worth required under paragraph (2); and

     (2)  Every mutual benefit society shall maintain a minimum net worth equal to the greater of:

          (A)  $2,000,000;

          (B)  Two per cent of annual premium revenues as reported on the most recent annual financial statement filed with the commissioner on the first $150,000,000 of premium revenues and one per cent of annual premium revenues on the premium revenues in excess of $150,000,000; or

          (C)  An amount equal to eight per cent of the sum of annual health care expenditures and operating expenses as reported on the most recent financial statement filed with the commissioner.

          For the purposes of subparagraphs (B) and (C), the annual gross premium revenues and gross annual health care expenditures shall be reduced by the total amount thereof ceded to reinsurers by the mutual benefit society; provided that the reinsurance credit taken complies with sections 431:4A-101 through 431:4A-104 and the administrative rules adopted thereunder by the commissioner."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Mutual Benefit Societies; Credit for Reinsurance

 

Description:

Provides a credit for reinsurance to mutual benefit societies.

 

 

 

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