HI SB1177

Expands the definition of "affiliated entity" for pure captive insurance companies to include entities with a working relationship whose risks are similar or related to those insured by the parent, removing the previous requirement of direct or indirect control.

Modifies the definition of "parent" to clarify that it means any entity that controls and directs the management and policies of a pure captive insurance company through ownership of voting interests or securities, rather than requiring ownership of more than 50 percent of voting interests.

Clarifies that risk retention captive insurance companies are subject to specific articles of Hawaii insurance law (articles 1, 2, 6, 15, and chapter 431K) while pure captive insurance companies and branch captive insurance companies are exempt from most general insurance laws.

Updates references to applicable law provisions for sponsored captive insurance companies, specifying they are subject to Part I rather than Part II of the relevant statute.

Takes effect upon approval.