SB2853 Summary

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

• Exempts insurers with annual direct written and assumed premiums less than $500,000,000 and insurance groups with less than $1,000,000,000 in annual premiums from assessment requirements, with provisions for delayed compliance when thresholds are exceeded.

• Establishes confidentiality protections for assessment documents and allows the commissioner to share information with other regulators, the National Association of Insurance Commissioners, and third-party consultants under written agreements maintaining privileged status.

• Imposes penalties of $100 to $500 per day (maximum $50,000) for insurers failing to timely file required assessment reports without just cause.

• Revises Hawaii's Model Risk Retention Act to require captive insurance companies to establish independent board majorities, audit committees, governance standards, codes of business conduct, and limits on service provider contracts to five years, with compliance required by July 1, 2017.