HB 1050: Insurance; Net Solvency Report; Mutual Benefit Societies; Health Maintenance Organizations; Dental Insurers

A BILL FOR AN ACT

RELATING TO TITLE 24, HAWAII REVISED STATUTES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 432:1-407, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  Each domestic mutual benefit society shall prepare and submit for review by the commissioner on or before the forty-fifth day [of] after each [quarter,] of the first three calendar quarters, and for the fourth calendar quarter ending December 31, on or before the next March 1, a copy of its quarterly net solvency report verified by at least two principal officers.  The commissioner may prescribe the forms on which the reports are to be prepared.  Each domestic mutual benefit society shall maintain a copy of its current net solvency report on the premises of its primary place of business.  The commissioner may order an examination, subject to article 2 of chapter 431, to determine whether a domestic mutual benefit society is in compliance with this section.  Any domestic mutual benefit society that fails or refuses to prepare or [produce] submit for review the quarterly net solvency report as required by this subsection shall be liable for a penalty in an amount [not] no less than $100 and [not] no more than $500 per day."

     SECTION 2.  Section 432D-8, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  Each health maintenance organization shall prepare and submit for review by the commissioner on or before the forty-fifth day [of] after each [quarter,] of the first three calendar quarters, and for the fourth calendar quarter ending December 31, on or before the next March 1, a copy of its quarterly net solvency report verified by at least two principal officers.  The commissioner may prescribe the forms on which the reports are to be prepared.  Every health maintenance organization shall maintain a copy of its current net solvency report on the premises of its primary place of business.  The commissioner may order an examination, subject to article 2 of chapter 431, to determine whether a health maintenance organization is in compliance with this section.  Any health maintenance organization that fails or refuses to prepare or [produce] submit for review the quarterly net solvency report as required by this subsection shall be liable for a penalty in an amount [not] no less than $100 and [not] no more than $500 per day."

     SECTION 3.  Section 432G-6, Hawaii Revised Statutes, is amended by amending subsections (g) and (h) to read as follows:

     "(g)  Each dental insurer shall prepare and submit for review by the commissioner on or before the forty-fifth day [of] after each [quarter,] of the first three calendar quarters, and for the fourth calendar quarter ending December 31, on or before the next March 1, a copy of its quarterly net solvency report verified by at least two principal officers.  The commissioner may prescribe the forms on which the reports are to be prepared.  Every dental insurer shall maintain a copy of its current net solvency report on the premises of its primary place of business.

     (h)  The commissioner may order an examination, subject to article 2 of chapter 431, to determine whether a dental insurer is in compliance with this section.  Any dental insurer that fails or refuses to prepare or [produce] submit for review the quarterly net solvency report or any of the documents as required by this section shall be liable for a penalty pursuant to section 432G‑4(c)."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

Insurance; Net Solvency Report; Mutual Benefit Societies; Health Maintenance Organizations; Dental Insurers

Description:

Provides amendments to net solvency report filing requirements for mutual benefit societies, health maintenance organizations, and dental insurers.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO TITLE 24, HAWAII REVISED STATUTES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 432:1-407, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  Each domestic mutual benefit society shall prepare and submit for review by the commissioner on or before the forty-fifth day [of] after each [quarter,] of the first three calendar quarters, and for the fourth calendar quarter ending December 31, on or before the next March 1, a copy of its quarterly net solvency report verified by at least two principal officers.  The commissioner may prescribe the forms on which the reports are to be prepared.  Each domestic mutual benefit society shall maintain a copy of its current net solvency report on the premises of its primary place of business.  The commissioner may order an examination, subject to article 2 of chapter 431, to determine whether a domestic mutual benefit society is in compliance with this section.  Any domestic mutual benefit society that fails or refuses to prepare or [produce] submit for review the quarterly net solvency report as required by this subsection shall be liable for a penalty in an amount [not] no less than $100 and [not] no more than $500 per day."

     SECTION 2.  Section 432D-8, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  Each health maintenance organization shall prepare and submit for review by the commissioner on or before the forty-fifth day [of] after each [quarter,] of the first three calendar quarters, and for the fourth calendar quarter ending December 31, on or before the next March 1, a copy of its quarterly net solvency report verified by at least two principal officers.  The commissioner may prescribe the forms on which the reports are to be prepared.  Every health maintenance organization shall maintain a copy of its current net solvency report on the premises of its primary place of business.  The commissioner may order an examination, subject to article 2 of chapter 431, to determine whether a health maintenance organization is in compliance with this section.  Any health maintenance organization that fails or refuses to prepare or [produce] submit for review the quarterly net solvency report as required by this subsection shall be liable for a penalty in an amount [not] no less than $100 and [not] no more than $500 per day."

     SECTION 3.  Section 432G-6, Hawaii Revised Statutes, is amended by amending subsections (g) and (h) to read as follows:

     "(g)  Each dental insurer shall prepare and submit for review by the commissioner on or before the forty-fifth day [of] after each [quarter,] of the first three calendar quarters, and for the fourth calendar quarter ending December 31, on or before the next March 1, a copy of its quarterly net solvency report verified by at least two principal officers.  The commissioner may prescribe the forms on which the reports are to be prepared.  Every dental insurer shall maintain a copy of its current net solvency report on the premises of its primary place of business.

     (h)  The commissioner may order an examination, subject to article 2 of chapter 431, to determine whether a dental insurer is in compliance with this section.  Any dental insurer that fails or refuses to prepare or [produce] submit for review the quarterly net solvency report or any of the documents as required by this section shall be liable for a penalty pursuant to section 432G‑4(c)."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on October 1, 3000.

Report Title:

Insurance; Net Solvency Report; Mutual Benefit Societies; Health Maintenance Organizations; Dental Insurers

Description:

Provides amendments to net solvency report filing requirements for mutual benefit societies, health maintenance organizations, and dental insurers.  Effective 10/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO TITLE 24, HAWAII REVISED STATUTES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 432:1-407, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  Each domestic mutual benefit society shall prepare and submit for review by the commissioner on or before the forty-fifth day [of] after each [quarter,] of the first three calendar quarters, and for the fourth calendar quarter ending December 31, on or before the next March 1, a copy of its quarterly net solvency report verified by at least two principal officers.  The commissioner may prescribe the forms on which the reports are to be prepared.  Each domestic mutual benefit society shall maintain a copy of its current net solvency report on the premises of its primary place of business.  The commissioner may order an examination, subject to article 2 of chapter 431, to determine whether a domestic mutual benefit society is in compliance with this section.  Any domestic mutual benefit society that fails or refuses to prepare or [produce] submit for review the quarterly net solvency report as required by this subsection shall be liable for a penalty in an amount not less than $100 and not more than $500 per day."

     SECTION 2.  Section 432D-8, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  Each health maintenance organization shall prepare and submit for review by the commissioner on or before the forty-fifth day [of] after each [quarter,] of the first three calendar quarters, and for the fourth calendar quarter ending December 31, on or before the next March 1, a copy of its quarterly net solvency report verified by at least two principal officers.  The commissioner may prescribe the forms on which the reports are to be prepared.  Every health maintenance organization shall maintain a copy of its current net solvency report on the premises of its primary place of business.  The commissioner may order an examination, subject to article 2 of chapter 431, to determine whether a health maintenance organization is in compliance with this section.  Any health maintenance organization that fails or refuses to prepare or [produce] submit for review the quarterly net solvency report as required by this subsection shall be liable for a penalty in an amount not less than $100 and not more than $500 per day."

     SECTION 3.  Section 432G-6, Hawaii Revised Statutes, is amended by amending subsections (g) and (h) to read as follows:

     "(g)  Each dental insurer shall prepare and submit for review by the commissioner on or before the forty-fifth day [of] after each [quarter,] of the first three calendar quarters, and for the fourth calendar quarter ending December 31, on or before the next March 1, a copy of its quarterly net solvency report verified by at least two principal officers.  The commissioner may prescribe the forms on which the reports are to be prepared.  Every dental insurer shall maintain a copy of its current net solvency report on the premises of its primary place of business.

     (h)  The commissioner may order an examination, subject to article 2 of chapter 431, to determine whether a dental insurer is in compliance with this section.  Any dental insurer that fails or refuses to prepare or [produce] submit for review the quarterly net solvency report or any of the documents as required by this section shall be liable for a penalty pursuant to section 432G‑4(c)."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act, upon its approval, shall take effect on October 1, 2025.

Report Title:

Insurance; Net Solvency Report

Description:

Provides amendments to net solvency report filing requirements for mutual benefit societies, dental insurers, and health maintenance organizations.  Effective 10/1/2025.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 1491

Honolulu, Hawaii

RE:    H.B. No. 1050

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 1050, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TITLE 24, HAWAII REVISED STATUTES,"

begs leave to report as follows:

     The purpose and intent of this measure is to amend the filing dates of quarterly net solvency reports for mutual benefit societies, health maintenance organizations, and dental insurers so that the fourth quarter filing deadline falls on March 1 of the next year.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs.

     Your Committee finds that existing law requires mutual benefit societies, health maintenance organizations, and dental insurers to file their fourth quarter net solvency reports by February 14 and their annual blank filings by March 1.  Your Committee also finds that additional accounting adjustments can occur during the two-week differential, requiring additional efforts to reconcile those differences.  This measure aims to optimize and streamline the process for mutual benefit societies, health maintenance organizations, and dental insurers to comply with the net solvency report filing requirements by aligning the deadlines for the fourth quarter net solvency reports and annual blank filings to March 1.  Your Committee believes that this measure will reduce the compliance burden on these filing entities by allowing them to complete their required filings in a more efficient manner.

     Your Committee has amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1050, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1050, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

STAND. COM. REP. NO.  809

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1050

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1050 entitled:

"A BILL FOR AN ACT RELATING TO TITLE 24, HAWAII REVISED STATUTES,"

begs leave to report as follows:

     The purpose of this measure is to change the filing dates of quarterly net solvency reports for mutual benefit societies, health maintenance organizations, and dental insurers so that the fourth quarter filing deadline falls on March 1 of the next year.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs.

     Your Committee finds that, under existing law, fourth quarter net solvency reports for mutual benefit societies, health maintenance organizations, and dental insurers are due on February 14.  However, the annual blank filings for these entities are due on March 1.  By aligning the due dates for the fourth quarter net solvency reports with the due date for the annual blank filings, this measure reduces the compliance burden for these entities and allows them to complete their filings in a more efficient manner and helps streamline regulation for the Insurance Division of the Department of Commerce and Consumer Affairs.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to October 1, 3000, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1050, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1050, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,