§16-185-116 - Exemptions and effective dates.

§16-185-116 Exemptions and effective dates. (a) Upon written application of any insurer, the commissioner may grant an exemption from compliance with any or all provisions of this chapter if the commissioner finds, upon review of the application, that compliance with this chapter would constitute a financial or organizational hardship upon the insurer. An exemption may be granted at any time and from time to time for a specified period or periods. Within ten days from a denial of an insurer's written request for an exemption from this chapter, the insurer may request in writing a hearing on its application for an exemption. The hearing shall be held in accordance with section 431:2-308, HRS.

         (b) Domestic insurers retaining a certified public accountant on the effective date of this chapter who qualify as independent shall comply with this chapter for the year ending December 31, 2010, and each year thereafter unless the commissioner permits otherwise.

         (c) Domestic insurers not retaining a certified public accountant who qualifies as independent on the effective date of this chapter may meet the following schedule for compliance unless the commissioner permits otherwise:

         (1) As of December 31, 2010, file with the commissioner an audited financial report; and

         (2) For the year ending December 31, 2010, and each year thereafter, such insurers shall file with the commissioner all reports and communication required by this chapter.

         (d) Foreign insurers shall comply with this chapter for the year ending December 31, 2010, and each year thereafter, unless the commissioner permits otherwise.

         (e) The requirements of section 16-185-106(d), Hawaii Administrative Rules, shall be in effect for audits of the year beginning January 1, 2010, and thereafter.

         (f) The requirements of section 16-185-113, Hawaii Administrative Rules, are to be in effect January 1, 2010. An insurer or group of insurers that is not required to have independent audit committee members or only a majority of independent audit committee members, as opposed to a super majority, because the total written and assumed premium is below the threshold and subsequently becomes subject to one of the independence requirements due to changes in premium, shall have one year following the year the threshold is exceeded, but not earlier than January 1, 2010, or the effective date of this section, whichever is later, to comply with the independence requirements. Likewise, an insurer that becomes subject to one of the independence requirements as a result of a business combination shall have one calendar year following the date of acquisition or combination to comply with the independence requirements.

         (g) (1) Except for risk retention captive insurers, sections 16-185-101 through 112, and sections 16-185-114 through 118, Hawaii Administrative Rules, shall be effective beginning with the reporting period ending December 31, 2010, and each year thereafter.

         (2) Sections 16-185-101 through 112, and sections 16-185- 114 through 16-185-118, Hawaii Administrative Rules, shall be effective for risk retention captive insurers beginning with the reporting period ending December 31, 2011, and each year thereafter.

         (3) Section 16-185-113.1, Hawaii Administrative Rules, shall be effective January 1, 2020. If an insurer or a group of insurers that is exempt from the section 16-185-113.1, Hawaii Administrative Rules, requirements no longer qualifies for that exemption, it shall have one year after the year threshold is exceeded to comply with the requirements of this chapter.

        [Eff 2/04/10; am and comp 12/30/19] (Auth: HRS §431:2-201) (Imp: HRS §§431:2-201, 431:2-308, 431:3-302.5)

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