HB 2112 Summary

• Adopts 2019 amendments to the National Association of Insurance Commissioners' Credit for Reinsurance Model Law to align Hawaii insurance regulations with bilateral agreements between the United States and European Union and United Kingdom

• Creates new "reciprocal jurisdiction" category for assuming insurers domiciled in jurisdictions subject to covered agreements with the U.S., allowing credit for reinsurance without posting collateral if minimum capital, solvency ratios, and other conditions are met

• Establishes certification requirements for assuming insurers from qualified jurisdictions, including minimum capital and surplus amounts, financial strength ratings, jurisdiction of submission, and prompt payment practices

• Authorizes the commissioner to adopt rules regarding security requirements for reinsurance arrangements involving life insurance with nonlevel benefits, universal life policies with secondary guarantees, variable annuities with guaranteed benefits, and long-term care insurance

• Takes effect upon approval