Haw. Code R. § 16-14-8 - Transactions subject to prior notice
(a) An insurer
required to give notice of a proposed transaction pursuant to section
431:11-106,
HRS, shall furnish the required information on Form D.
(b) Management agreements, service
agreements, and cost sharing arrangements shall at a minimum and as applicable:
(1) Identify the person providing services
and the nature of such services;
(2) Set forth the methods to allocate
costs;
(3) Require timely
settlement, not less frequently than on a quarterly basis, and compliance with
the requirements in the National Association of Insurance Commissioners"
Accounting Practices and Procedures Manual;
(4) Prohibit advancement of funds by the
insurer to the affiliate except to pay for services defined in the
agreement;
(5) State that the
insurer will maintain oversight for functions provided to the insurer by the
affiliate and that the insurer will monitor services annually for quality
assurance;
(6) Define books and
records of the insurer to include all books and records developed or maintained
under or related to the agreement;
(7) Specify that all books and records of the
insurer are and remain the property of the insurer and are subject to control
of the insurer;
(8) State that all
funds and invested assets of the insurer are the exclusive property of the
insurer, held for the benefit of the insurer and are subject to the control of
the insurer;
(9) Include standards
for termination of the agreement with cause;
(10) Include procedures for termination of
the agreement without cause;
(11)
Include provisions for indemnification of the insurer in the event of gross
negligence or wilful misconduct on the part of the affiliate providing the
services;
(12) Specify that, if the
insurer is placed in receivership or seized by the commissioner under article
15, chapter 431, HRS:
(A) All of the rights
of the insurer under the agreement extend to the receiver or commissioner;
and
(B) All books and records will
immediately be made available to the receiver or the commissioner, and shall be
turned over to the receiver or commissioner immediately upon the receiver or
the commissioner's request;
(13) Specify that the affiliate has no
automatic right to terminate the agreement if the insurer is placed in
receivership pursuant to article 15, chapter 431, HRS; and
(14) Specify that the affiliate will continue
to maintain any systems, programs, or other infrastructure notwithstanding a
seizure by the commissioner under article 15, chapter 431, HRS, and will make
them available to the receiver, for so long as the affiliate continues to
receive timely payment for services rendered.
Notes
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