HI HB2851

Temporarily increases insurance premium tax rates payable by insurers until June 30, 2015, including life insurance (2.75 to 3.437 percent), ocean marine insurance (0.8775 to 1.0968 percent), real property title insurance (4.265 to 5.331 percent), and other authorized insurers (4.265 to 5.331 percent).

Increases taxes on insureds for non-authorized insurer contracts from 4.68 to 5.85 percent and on surplus lines broker insurance from 4.68 to 5.85 percent of gross premiums.

Committee removed proposed tax increases on captive insurance companies after testimony demonstrated the increases would harm Hawaii's captive insurance industry.

Limits life insurance tax increase to contracts taking effect on or after July 1, 2010, allowing existing permanent life insurance policies to maintain the current 2.75 percent rate since their premiums are fixed.

Specifies that when the bill expires on June 30, 2015, all life insurance contracts return to the 2.75 percent tax rate regardless of contract start date.