HAR §16-17-2. Definitions

For purposes of this chapter: "Adverse financial condition" means one or more of the following conditions: (1) The impairment of capital resulting from an imbalance of liabilities and assets; (2) Financial ratios exceeding levels established by the commissioner, if any; or (3) The material degradation of financial results envisioned by the designated captive insurance manager or independent certified public accountant through predictive forecasting to the end of the next annual reporting period. "Applicant captive" means a captive applying for a certificate of authority under the captive insurance code. "Captive" or "captive insurance company" shall have the same meaning as provided for "captive insurance company" in section 431:19-101, Hawaii Revised Statutes. "Captive insurance code" means article 19 of chapter 431, Hawaii Revised Statutes. "Commissioner" means the insurance commissioner of the State of Hawaii or a duly authorized representative. "Credit for reinsurance" means taking credit for reserves on risks ceded to a reinsurer by a captive on the captive's financial statements. §16-17-6 17-3 "Governing body" shall have the same meaning as provided in section 431:19-101, Hawaii Revised Statutes. "Organizational documents" shall have the same meaning as provided for "organizational document" in section 431:19-101, Hawaii Revised Statutes. "Risk retention captive" shall have the same meaning as provided for "risk retention captive insurance company" in section 431:19-101, Hawaii Revised Statutes. [Eff 5/13/91; am and comp 3/12/01; am and comp 08/18/16; am and comp 08/17/19] (Auth: HRS §431:19-114) (Imp: HRS §431:19-114)