1070
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE INSURANCE CODE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 431:19-108, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a) [At least once a year, and whenever the commissioner
 
 4 determines it to be prudent, the commissioner, or a designated
 
 5 agent, shall visit each captive insurance company and]  The
 
 6 commissioner or any examiner authorized by the commissioner may
 
 7 conduct an examination of any captive insurance company as often
 
 8 as the commissioner deems appropriate, but at a minimum an
 
 9 examination shall be conducted at least once in every three
 
10 years.  The commissioner or any authorized examiner shall
 
11 thoroughly inspect and examine [its] the company's affairs to
 
12 ascertain its financial condition, its ability to fulfill its
 
13 obligations, and whether it has complied with this article. [The
 
14 commissioner, upon application, may enlarge the one-year period
 
15 to three years; provided that the captive insurance company is
 
16 subject to a comprehensive annual audit during that period of a
 
17 scope satisfactory to the commissioner by independent auditors
 
18 approved by the commissioner.]"
 
19      SECTION 2.  Statutory material to be repealed is bracketed.
 

 
a                                                     CCA-11(99)
Page 2                                                     1070
                                     H.B. NO.           
                                                        
                                                        

 
 1 New statutory material is underscored.
 
 2      SECTION 3.  This Act shall take effect upon its approval.
 
 3 
 
 4                           INTRODUCED BY: ________________________
 

 
a                                                     CCA-11(99)