Report Title:

Compliance Resolution Fund; Insurer Assessments; Audit

Description:

Provides a formula for determining assessments to be paid by each line of insurance regulated under the Insurance Code and caps these assessments at a total of $2,000,000 per fiscal year. Requires the Auditor to perform an annual financial and management audit of the insurance regulation sub-account of the Compliance Resolution Fund. (HB160 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

160

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the compliance resolution fund.

 

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

SECTION 1. Section 431:2-215, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The [commissioner shall determine the] amount or amounts to be assessed [and the time any moneys from assessments are due] for each line or type of insurance or entity regulated under title 24[; provided that:] shall be determined and assessed as provided below:

[(1) The criteria for making the assessment shall be established by rule; provided further that the commissioner shall have provisional authority to make assessments prior to adoption of the rule but this provisional authority shall not extend beyond two years from June 28, 1999;

(2)] (1) The insurers or entities regulated under title 24 shall be provided [reasonable] at least sixty days notice of when their respective assessments are due;

(2) The total amount or amounts to be assessed of insurers or entities regulated under title 24 in all lines or types of insurance shall be calculated based on the commissioner's proposed fiscal year budget, less funds in the insurance regulation sub-account of the compliance resolution fund on June 30 of the fiscal year immediately preceding the fiscal year of the proposed budget, and the commissioner's anticipated revenues;

(3) The assessments by line or type shall bear a reasonable relationship to the costs of regulating the line or type of insurance, including any administrative costs of the division; and

(4) The sum total of all assessments made and collected shall not exceed the special fund ceiling or ceilings related to the fund that are established by the legislature[.]; provided that the total assessments for all lines or types of insurance in any one fiscal year shall not exceed $2,000,000.

[As used in this subsection, "reasonable notice" means a period of at least sixty days.]

The office of the auditor shall conduct a financial and management audit of the insurance regulation sub-account of the compliance resolution fund on an annual basis and shall report its findings to the legislature at least twenty days prior to the convening of each regular legislative session."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.