HI SB2950

Expressly authorizes Hawaii-licensed captive insurance companies to underwrite, reinsure, or assume catastrophic property and casualty risks including hurricanes, earthquakes, tsunamis, floods, wildfires, and volcanic activity, subject to Insurance Commissioner approval.

Limits authorization to commercial, industrial, institutional, governmental, or nonprofit risks; personal lines insurance requires separate commissioner approval.

Requires captive insurers handling catastrophic risks to maintain capital and surplus levels determined by the commissioner, who may require catastrophe modeling, stress testing, and independent actuarial opinions.

Mandates captive insurers report exposure levels, aggregate catastrophic risk, reinsurance arrangements, and financial condition to the commissioner to ensure solvency and market stability.

Takes effect July 1, 2050, adding a new part to Hawaii Revised Statutes Chapter 431, Article 19 governing captive insurance.