HI SB1077

Amends Hawaii Revised Statutes Section 432:1-407(a) to clarify minimum net worth requirements for mutual benefit societies.

Requires mutual benefit societies to maintain minimum net worth equal to the greater of: $2,000,000; two percent of gross annual premium revenues on the first $150,000,000 and one percent on revenues exceeding $150,000,000; or eight percent of gross annual health care expenditures and operating expenses.

Allows gross annual premium revenues and gross annual health care expenditures to be reduced by the total amount ceded to reinsurers, provided the reinsurance credit complies with sections 431:4A-101 through 431:4A-104 and commissioner rules.

Takes effect on July 1, 2050.