HI HB1045

Adds three new definitions to Hawaii insurance law: "benefit society," "domestic insurer" (which includes insurers, benefit societies, and health maintenance organizations), and "health maintenance organization."

Expands the definition of "total adjusted capital" to include net worth and references statutory accounting from sections applicable to benefit societies, fraternal benefit societies, and health maintenance organizations, not just traditional insurers.

Extends risk-based capital requirements and regulatory oversight to benefit societies and health maintenance organizations by establishing specific formulas and trend tests for these entities, mirroring requirements previously limited to life/health and property/casualty insurers.

Enhances confidentiality protections for risk-based capital reports by clarifying they are privileged, not subject to subpoena or discovery in private civil actions, while allowing the commissioner to share information with other regulators and law enforcement agencies.

Establishes exemptions from risk-based capital requirements for small domestic benefit societies and health maintenance organizations that write direct business only in Hawaii, assume minimal reinsurance, and either write limited premiums or cover fewer than 2,000 lives.

Effective July 1, 2011.