Officials of Hawaii's captive insurance industry trade groupsaid they are applauding two bills designed to enhance and clarifycaptive insurance laws that have been signed into law by Gov. LindaLingle.

The Hawaii Captive Insurance Council (HCIC) said it had workedin concert with the Legislature and the Hawaii Insurance Divisionto craft changes which illustrate the state's “continued commitmentand responsiveness to the growing and thriving captiveindustry.”

Highlights of the legislative amendments that were signed by thegovernor on June 29 include:

o Streamlining investment opportunities for pure captiveinsurance companies.

o Allowing captives to be formed as limited liabilitycompanies.

o Clarifying minimum capital and surplus requirements.

o Establishing a maximum premium tax liability of $200,000.

o Elevating the state captive insurance administrator positionto deputy insurance commissioner status.

“This is a great example of the captive industry, regulators andlawmakers working together to craft legislation that strengthensHawaii's position as a premier captive insurance domicile,” saidJ.P. Schmidt, Hawaii's insurance commissioner.

“We believe in supporting the captive industry,” Mr. Schmidtsaid, “and this legislation further illustrates Hawaii's commitmentto captives.”

Hawaii is the second largest captive insurance domicile in theUnited States. Since captive legislation was adopted in 1986,Hawaii has licensed more than 200 captives from diverse industriesincluding homebuilding and construction, manufacturing, hospitalityservices, health care and telecommunications.