HI HB2503

Establishes five classes of captive insurance companies (Classes 1-5) with specific definitions and requirements for each type, including pure captive, association captive, risk retention, sponsored, and reinsurance/excess insurers.

Allows pure captive insurance companies to insure risks of controlled unaffiliated businesses (non-parent entities) in addition to parent and affiliated entities, subject to commissioner-adopted rules.

Creates a captive insurance administrator position within the insurance division as a deputy commissioner to oversee monitoring, regulation, and development of captive insurance companies.

Permits captive insurance companies to maintain strategic investment policies approved by the commissioner as an alternative to standard investment restrictions.

Clarifies confidentiality protections for captive insurance company information, with exceptions for risk retention companies which follow standard insurance confidentiality provisions, and authorizes the commissioner to impose fines in addition to suspending or revoking certificates of authority.