Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 19 - PREMIUM TAX CREDIT › Section 16-19-1 - Tax credit to facilitate regulatory oversight

Current through June, 2024
(a) In order to
			 qualify for the credit in section 431:7- , HRS, an insurer must meet each of
			 the following criteria at all times during the taxable year for which the
			 credit is claimed.
(1) The insurer is
			 authorized to do business in Hawaii by the insurance commissioner;
(2) The insurer maintains in Hawaii:
(A) All documentation in support of the
			 information shown on the insurer's annual statement filed with the insurance
			 commissioner, including general ledger accounts, and all information pertaining
			 to Hawaii operations, underwriting, premiums, and claims (including reserving
			 calculations);
(B) All information
			 compiled on Hawaii policyholders;
(C) All organizational documents such as
			 articles of incorporation, by-laws, and certificate of authority;
(D) Minutes of meetings of the board of
			 directors and the board's committees for the past three years;
(E) All agreements materially affecting
			 Hawaii business, including reinsurance bordereau;
(F) All information filed with the insurance
			 commissioner pertaining to rates currently in use or pending;
(G) A list of consumer complaints for the
			 past three years, including the date of complaint, the nature of the complaint,
			 the resolution of the complaint, and the date of resolution;
(H) A list of all lawsuits currently pending
			 against the insurer in the United States and the status of each suit;
(I) Written procedures and policies for
			 investments, underwriting, complaints, and marketing;
(J) Audit reports for the past three years,
			 including annual reports (with management letter) compiled by a certified
			 public accountant, annual actuarial reports with supporting data, and internal
			 audit reports; and
(K) A list of
			 the insurer's authorized agents in Hawaii together with their current
			 addresses, and for the preceding three years the gross amount of business the
			 agents wrote and the amount of commissions the agents were paid;
(3) The insurer employs in Hawaii
			 a person designated in writing by the insurer to represent the insurer in
			 examination matters. The insurer's designated representative, at minimum, must
			 be able to explain the insurer's annual statement, including the ledger
			 accounts, general ledger, and calculation of the trial balance on which the
			 statement is based, all changes in operations that affect liabilities, and all
			 agreements affecting Hawaii policyholders, including management agreements,
			 intercompany agreements, and reinsurance treaties. Additionally, the
			 representative must be able to access the insurer's computer systems and must
			 know what data is stored on the system and how to retrieve it; and
(4) The insurer maintains in Hawaii a
			 customer service center where the insurer's customers can meet in person with a
			 representative of the insurer who has the authority to promptly answer
			 questions and resolve problems concerning premium payments, the sales and
			 marketing of the insurance policy, the processing of a customer's application
			 for insurance, insurance policy coverage, including any endorsements,
			 underwriting decisions, including criteria for approval, and modification,
			 reinstatement, and cancellation of insurance policies.