Hawaii Captive Environment

Hawaii laws allow for the writing of all lines of casualty insurance, 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 risks of its owners and/or affiliates 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 class 1, class 2, class 3 or class 4 company and acts only as a reinsurer or excess insurer, or both, and insuring 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
Class 5:           As determined by Insurance Commissioner