SB 2821 Summary

• Adopts National Association of Insurance Commissioners model laws revising Hawaii's insurance regulatory framework, including updates to reinsurance credit rules, insurance valuation standards, life insurance nonforfeiture requirements, and insurance holding company regulations.

• Part I (effective 1/1/2015): Modernizes reinsurance credit standards by allowing credits for certified reinsurers meeting specific financial and jurisdictional requirements, replacing older accreditation standards with new risk-based security provisions.

• Part II: Updates life insurance reserve valuation methods to align with a principles-based valuation manual approach and establishes new actuarial opinion requirements for appointed actuaries.

• Part III: Revises standard nonforfeiture law for life insurance policies to clarify cash surrender value calculations and nonforfeiture benefit provisions based on updated mortality tables and interest rate methodologies.

• Part IV (effective 1/1/2016): Strengthens insurance holding company system regulation by requiring supervisory colleges for international operations, enterprise risk reporting, enhanced board governance standards, and expanded commissioner examination authority over affiliates.