Setting Up a Captive
Once a prospective captive organizer or organizers has made a decision to implement a Hawaii captive facility, the following steps should be undertaken:
- Select a name for the proposed captive facility. It cannot be deceptively similar to, or likely to be confused with, or mistaken for any other existing business name registered in the State.
- Select a captive insurance management firm. The use of a captive insurance manager is required for each captive, and is approved on a case by case basis for each captive by the Insurance Commissioner. In general, the captive insurance manager is expected to provide the appropriate depth and scope of experience and services necessary to ensure compliance with applicable local and/or multi-jurisdictional regulatory requirements.
- Arrange an introductory meeting with the Captive Insurance Branch of the Insurance Division. All prospective applicants are required to have an introductory meeting with the Captive Insurance Administrator. Purpose of the meeting is to introduce key officials of the organizers, and explain the who, what, where and how of the proposed facility.
- Petition Insurance Commissioner for Certificate of Public Good.
- Prepare documents for incorporation.
- Prepare application documents for submission to Insurance Division.
- Review by Insurance Division and independent advisor selected by the Insurance Commissioner. Upon approval by the Insurance Commissioner, Certificate of Public Good issued along with notice of approval.
- Submit incorporation documents to the Business Registration Division of the Department of Commerce and Consumer Affairs, along with appropriate filing fee and Certificate of Public Good.
- Submit appropriate forms to the Insurance Division. Upon filing of incorporation documents with the Business Registration Division, application is made to the Insurance Commissioner to issue the Certificate of Authority (or license), along with a certification from the captive’s President and Secretary regarding the captive’s financial condition.
- Certificate of Authority is issued by the Insurance Commissioner.