Hawaii law sets exam schedules for captive insurance companies

The commissioner or an authorized examiner examines captive insurance companies to review their finances, ability to meet obligations, and compliance with insurance rules. Companies other than risk retention captive insurers must be examined within five years after licensure; risk retention captive insurers must be examined within three years after formation. The commissioner may require a different schedule. After the first exam, most captive insurers may be examined at the commissioner's discretion through December 31, 2031. Starting January 1, 2032, all captive insurers must be examined at least once every five years; risk retention captive insurers must also be examined at least every five years after their first exam.

The insurance commissioner submits an evaluation of the examination approach to the legislature. The report evaluates the approach that lets the commissioner decide when to examine most captive insurance companies through 2031. The report must assess policyholder protection and insurers' financial condition and compliance, compare exam frequency, costs, and resource use before and after the Act, and recommend whether to continue, change, or end the approach. The report is due no later than 20 days before the legislature's regular 2031 session.