S.B. 3083 Summary

• Adds three new definitions to Hawaii's insurance code: "Group capital calculation instructions," "Liquidity stress test framework," and "Scope criteria," all based on National Association of Insurance Commissioners (NAIC) standards adopted by the commissioner.

• Requires ultimate controlling persons of insurers subject to registration to file annual group capital calculations with the lead state commissioner, with exemptions for single-insurer systems, Federal Reserve-supervised groups, reciprocal jurisdictions, and domestic insurance holding company systems.

• Requires insurers scoped into the liquidity stress test framework to file results annually based on NAIC scope criteria, with scope determinations reviewed at least annually and effective January 1 of the following year.

• Enhances affiliate transaction standards by requiring deposits or bonds for hazardous insurers, mandating affiliate data and records remain insurer property, protecting insurer premiums from affiliate offset claims, and subjecting service-providing affiliates to insurer receivership proceedings.

• Strengthens confidentiality protections for group capital calculations, liquidity stress test information, and proprietary materials shared with regulators and third-party consultants, while prohibiting misleading public statements about these regulatory tools.