§431:7-207  Tax credit to facilitate regulatory oversight.  (a)  Each authorized insurer that meets the requirements of subsection (b) may claim a tax credit under this section against the tax imposed by section 431:7-202(a) or (b) for the taxable year for which the credit is properly claimed.  The tax credit shall be an amount equal to one per cent of the premiums taxed by section 431:7-202(a) and (b).

     (b)  An insurer may claim the credit only if, at all times during the taxable year, the insurer:

     (1)  Maintains in Hawaii books and records required by the commissioner sufficient to conduct the examination authorized by section 431:2-302;

     (2)  Employs in Hawaii personnel knowledgeable about the insurer's financial operations and who are authorized to represent the insurer in all matters pertaining to examination; and

     (3)  Maintains in Hawaii a customer service center with employees authorized to promptly adjust, settle, and pay claims and to promptly answer all questions from customers regarding their insurance policies.

     (c)  The commissioner shall prepare the forms necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.

     (d)  All claims for the tax credit under this section, including any amended claims, must be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

     (e)  The tax credit allowed by subsection (a) may be claimed on the interim returns required by section [431:7-202(f)]. [L 1992, c 236, §5; am L 1994, c 160, §2]