(a) A captive insurance company may be licensed to provide personal lines coverage for unrelated risks if the commissioner deems that extraordinary circumstances exist whereby coverage would be appropriate and in the best interest of the public. In determining whether extraordinary circumstances exist, the commissioner shall consider the following factors:

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Terms Used In Hawaii Revised Statutes 431:19-102.2

  • Parent: means a corporation, limited liability company, partnership, other entity, or individual, that directly or indirectly owns, controls, or holds with power to vote more than fifty per cent of the outstanding voting interests of a pure captive insurance company organized as a stock corporation, nonprofit corporation, or limited liability company. See Hawaii Revised Statutes 431:19-101
(1) The extent to which the particular coverage is available in the voluntary market;
(2) The existence of a relationship between the parent of the captive insurance company and the proposed policyholders other than that of insurer to insured;
(3) Whether the captive insurance company has sufficient capitalization to insure the proposed risks; and
(4) Any other factors that the commissioner deems appropriate.
(b) Any captive insurance company formed pursuant to this section shall be subject to articles 5, 10, 10A, 10B, 10C, 10D, 10E, 10F, 10G, 12, and 15 of this chapter in addition to all other applicable law.

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