HI SB434

Amends definitions for "participant contract," "protected cell," and "sponsored captive insurance company" to clarify that risks are assumed on behalf of participants and maintained in separate protected cells.

Allows captive insurance companies (except risk retention captive insurance companies) to apply for a certificate of exemption from examination if they have completed at least one examination, filed all required financial statements, and demonstrated good cause.

Exemption certificates are valid for up to five years and may be renewed; the commissioner may revoke them for good cause.

Requires sponsored captive insurance companies to obtain commissioner approval before establishing protected cells and allows them to insure risks of unaffiliated parties in addition to participant risks.

Requires participants to insure only risks approved by the commissioner through a sponsored captive insurance company and mandates commissioner approval for all participant contracts and protected cell changes.