[§431:14A-109.5] Oversight council. (a) There is established the Hawaii employers' mutual insurance company oversight council which shall meet at least once annually. For administrative purposes only, the council shall be assigned to the department of commerce and consumer affairs. The council shall oversee the activities of the company to ensure that the company fulfills its purpose as set forth in this article.
(b) The council shall consist of five members who shall include:
(1) A member of the senate appointed by the president of the senate;
(2) A member of the house of representatives appointed by the speaker of the house of representatives;
(3) The director of the department of labor and industrial relations;
(4) The director of the department of commerce and consumer affairs; and
(5) An at-large member who is an owner, officer, or employee of the company policyholder appointed by the governor;
provided that if any designee under paragraphs (1) to (4) does not meet the test in subsection (c), the president of the senate, speaker of the house, or governor, as applicable, shall designate an appropriate representative. Section 26-34 shall not apply to appointments under this section.
(c) No person shall serve on the council who within the second degree of consanguinity or affinity has a direct and substantial interest in an insurer that competes with the company, including but not limited to:
(1) A stockholder of a competing company (excluding a holder of less than one per cent of the outstanding shares in a publicly traded company);
(2) An employee of a competing company;
(3) An attorney who represents a competing company; or
(4) A party who contracts with a competing company (excluding an independent contractor or business owner who does less than twenty-five per cent of its total annual volume of business per year with competing insurers).
(d) Members of the council shall serve without compensation, but shall be reimbursed for reasonable expenses necessary for the performance of their duties.
(e) The administrator shall serve as liaison officer to the council. Not later than sixty days after July 20, 1998 and every June 15 thereafter, the board shall provide to the council any and all data and information the council may require, including but not limited to:
(1) The company's statutorily required annual financial statement;
(2) Copies of any reports issued by the insurance division in connection with the triennial examination of the company; and
(3) Actuarial certification of loss reserves.
(f) After receipt of the data and information required pursuant to subsection (e), the council shall review the activities of the company and determine whether the company is fulfilling its purpose as set forth in this article. The council shall promptly, but in no event later than October 15, 1998, and every October 15 thereafter, submit a report to the governor with a copy to the board of directors, stating whether the company is fulfilling its purpose as set forth in this article. If the council determines that there are any deficiencies in the company's fulfillment of its purposes as set forth in this article, it shall include in its report a detailed description of any deficiencies. Within a time frame established by the council, but in no event later than six months after delivery of the council's report in accordance with this section, the company shall respond in writing to any deficiencies identified in the council's report. The Hawaii employers' mutual insurance company shall provide staff support to the council.
(g) If the governor determines that corrective action is appropriate after reviewing the council's report and the company's response, the governor shall inform the legislature, and the legislature shall consider what action is needed. [L 1998, c 252, §2]
"July 20, 1998" substituted for "passage of this Act" pursuant to §23G-15.