Haw. Code R. § 16-17-17 - Surety insurance
(a) A captive may
provide surety insurance under a business plan approved by the commissioner,
provided that the captive maintains a ratio no greater than ten to one of the
total value of outstanding bond obligations to unimpaired capital and surplus.
For purposes of this subsection, intercompany or affiliated loans are
considered nonadmitted assets when determining unimpaired capital and surplus
under sections
431:19-104,
431:6-201,
and
431:19-110, Hawaii
Revised Statutes, unless an irrevocable letter of credit issued by a bank
chartered by this State or a member bank of the Federal Reserve System, or
other collateral approved by the commissioner, fully secures the
loans.
(b) Within forty-five days
of the end of each calendar quarter, the approved captive manager pursuant to
section
431:19-101.4,
Hawaii Revised Statutes, shall submit to the commissioner the following:
(1) A listing of all outstanding surety
obligations, including the purpose of each bond and its respective obligee,
bond principal, outstanding bond value, and calculations of unearned premiums
based upon the bond term. The listing shall also include attestations by an
officer of the captive and the captive manager that the listing is complete and
accurate;
(2) Quarterly unaudited
financial statements of the captive insurer prepared in accordance with
generally accepted accounting principles or other accounting principles
prescribed or permitted under law, and attested by the captive manager and an
officer of the captive;
(3)
Quarterly unaudited financial statements of the bond principal, and a statement
signed by an officer or other responsible person of the bond principal as to
whether there has been any written claim or notice of dispute, or lawsuit
received by the bond principal relating to the contract or matter for which a
bond underwritten by the captive was issued involving an amount equal to or
exceeding ten percent (10%) of the face amount of the bond. For
construction-related bonds, the principal shall include a construction
work-in-progress report for all of the principal's construction projects
supported by outstanding bonds issued by the captive;
(4) Quarterly statutory compliance
calculations for minimum required capital and surplus pursuant to sections
431:19-104,
431:6-201,
and
431:19-110, Hawaii
Revised Statutes; and
(5) Any
additional information required by the commissioner.
(c) In the event a claim is reported against
a bond, the captive shall provide written notification to the commissioner
within five working days of the claim being reported.
(d) As used in this section, "bond principal"
means the entity or affiliate of the entity for whom the bond was issued by the
captive."
Notes
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