HB2324 Summary

• Adopts the NAIC Risk Management and Own Risk and Solvency Assessment (ORSA) Act, requiring Hawaii insurers to maintain risk management frameworks and conduct annual own risk and solvency assessments.

• Exempts insurers with less than $500 million in annual direct written and assumed premiums (or insurance groups with less than $1 billion) from ORSA requirements, unless the commissioner requires compliance based on unique circumstances or financial distress indicators.

• Establishes confidentiality protections for ORSA reports and related documents, allowing the commissioner to share information with other regulators and the NAIC while prohibiting public disclosure without insurer consent.

• Applies risk-based capital provisions, severability clauses, and notices requirements to risk retention captive insurance companies.

• Adopts the NAIC Model Risk Retention Act, imposing governance standards on risk retention groups including majority independent boards, audit committees, service provider contract limits, and codes of business conduct (effective July 1, 2017 for existing groups; July 1, 2016 for new groups).