REPORT TITLE:
Mutual Benefit Societies


DESCRIPTION:
Subjects mutual benefit societies to regulation under the
insurance code.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            807         
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO MUTUAL BENEFIT SOCIETIES.



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

 1      SECTION 1.  Section 431:1-101, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "431:1-101  Compliance required.  No person shall transact
 
 4 a business of insurance in this State without complying with the
 
 5 applicable provisions of this code.  Any person transacting a
 
 6 business of insurance under chapter 432 shall also be subject to
 
 7 this [code only to the extent provided in chapter 432.] chapter."
 
 8      SECTION 2.  Section 432:1-101, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "432:1-101  Scope; [exemptions.] applicability of insurance
 
11 code.  The provisions of this article shall apply to mutual
 
12 benefit societies as defined herein.  [Except as expressly
 
13 provided in this article,] Furthermore, mutual benefit societies
 
14 shall also be [exempt from the provisions of the insurance code.
 
15 No law enacted after July 1, 1988, shall apply to mutual benefit
 
16 societies unless such societies are expressly designated
 
17 therein.] subject to chapter 431."
 
18      SECTION 3.  Section 432:1-102, Hawaii Revised Statutes, is
 
19 amended by amending subsection (a) to read as follows:
 

 
Page 2                                         807         
                                     H.B. NO.           
                                                        
                                                        

 
 1      "(a)  [Part III of article] Article 10A of chapter 431 shall
 
 2 apply to nonprofit medical indemnity or hospital service
 
 3 associations.  [Such associations shall be exempt from the
 
 4 provisions of part I of article 10A; provided that such exemption
 
 5 is in compliance with applicable federal statutes and
 
 6 regulations.]"
 
 7      SECTION 4.  Section 432:1-103, Hawaii Revised Statutes, is
 
 8 amended by amending subsection (a) to read as follows:
 
 9      "(a)  [None of the provisions of this] This article shall
 
10 apply to[, or in any way be held to affect,] mutual benefit and
 
11 fraternal societies which have been in existence and functioning
 
12 within the State continuously for ten years prior to May 8,
 
13 1937."
 
14      SECTION 5.  Statutory material to be repealed is bracketed.
 
15 New statutory material is underscored.
 
16      SECTION 6.  This Act shall take effect upon its approval.
 
17 
 
18                           INTRODUCED BY:  _______________________