Officials of Hawaii's captive insurance industry trade group said they are applauding two bills designed to enhance and clarify captive insurance laws that have been signed into law by Gov. Linda Lingle.

The Hawaii Captive Insurance Council (HCIC) said it had worked in concert with the Legislature and the Hawaii Insurance Division to craft changes which illustrate the state's “continued commitment and responsiveness to the growing and thriving captive industry.”

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

o Streamlining investment opportunities for pure captive insurance companies.

o Allowing captives to be formed as limited liability companies.

o Clarifying minimum capital and surplus requirements.

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

o Elevating the state captive insurance administrator position to deputy insurance commissioner status.

“This is a great example of the captive industry, regulators and lawmakers working together to craft legislation that strengthens Hawaii's position as a premier captive insurance domicile,” said J.P. Schmidt, Hawaii's insurance commissioner.

“We believe in supporting the captive industry,” Mr. Schmidt said, “and this legislation further illustrates Hawaii's commitment to captives.”

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

Special Reports /

Hawaii Has Two New Captive Laws

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