Hawaii Captive Environment

Hawaii laws allow for the writing of all lines of casualty insurance, liability, marine and transportation, marine protection and indemnity, wet marine and transportation, property, surety, title, credit life and credit disability, or other lines that may be allowed by the Insurance Commissioner. Coverages can be provided by the captive on a direct or reinsured basis, or combination thereof.

Classes of Captives

Hawaii captives are designated and licensed as one of the following classes:

Class 1: Limited to single parent (or pure) captives that only reinsures affiliated risk from an insurer approved by the Insurance Commissioner

Class 2: Limited to single parent (or pure) captives that insures risks of its owners and/or affiliates on a direct basis, and may also assume reinsurance like a Class 1 captive.

Class 3: Limited to association captive insurance companies or risk retention captive insurance companies.

Class 4: Limited to a sponsored captive facility where protected cells may be established to segregate the risks of participants.

Class 5: A captive which is not a class1, class2, class3 or class 4 company and acts only as a reinsurer or excess insurer or both. And insures only those risks and lines of insurance approved by the Commissioner.

Capital and Surplus Provisions

Minimum required
capital and surplus determined by Insurance Commissioner based on each captive program.
Minimum statutory requirements:

Class 1:           $   100,000
Class 2:           $   250,000
Class 3:           $   500,000 (RRG & Association)
Class 4:           $   500,000 As determined by Insurance Commissioner
Class 5:           $   500,000 Special Purpose Financial Captive Insurance Company (Securitization)

Captive License Activity

165 active at 12/31/08
220 licensed since inception.

Recap By Year 87-90 91 95 99 00 01 02 03 04 05 06 07 08
Beginning Balance 0 15 41 54 59 74 86 101 122 147 158 160 163
Additions 15 7 5 11 17 15 16 23 30 18 8 10 8
Deletions 0 0 (1) (6) (2) (3) (1) (2) (5) (7) (6) (7) (6)
Ending Balance 15 22 45 59 74 86 101 122 147 158 160 163 165

Captive Owners by Location

U.S. Western 123

Eastern 21

Central 10

Total U.S. 154



Non-U.S Asia / Pacific 11

Total at 12/31/2008 165

Captive Owners by Industry Groups

Construction / Real Estate 48
Health Care 31
Telecommunications & Manufacturing 27
Retail & Other Services 22
Financial Services 21
Transportation / Energy 16
Total at 12/31/2008 165