HI HB2505

Updates Hawaii's guaranty association laws to conform with the National Association of Insurance Commissioners' (NAIC) Property and Casualty Insurance Guaranty Association Model Act and NAIC Life and Health Insurance Guaranty Association Model Act

Releases the Hawaii Life and Disability Insurance Guaranty Association (HLDIGA) and reinsurers from rights and obligations under reinsurance contracts for periods before and after the liquidation order, unless HLDIGA elects to assume the contract

Allows HLDIGA to transfer reinsurance on policies or annuities to an assuming insurer when policies or covered obligations are transferred

Requires the receiver to retain rights to reinsurance proceeds for losses occurring before the liquidation order date, while preventing such proceeds from being paid to the receiver for losses occurring after the liquidation date

Mandates that reinsurance contract terms and conditions cannot be altered or modified except as provided by law, and requires the receiver, reinsurer, and HLDIGA to share data and records as reasonably requested