HAR §16-17-6. Fee schedule

(a) Each applicant captive shall pay to the commissioner a nonrefundable application fee of $1,000 for examining, investigating, and processing its license application. Upon approval of the application for a certificate of authority, the applicant captive shall pay to the commissioner a license fee for the certificate of authority in the amount set forth in subsection (b). Thereafter, each captive shall pay to the commissioner a renewal fee in the amount set forth in subsection (b) for each succeeding year on or before April 1. (b) Depending on its class, a captive shall be subject to the following license and annual renewal fees: (1) $300 for each class 1 or class 2 captive insurance company; (2) $500 for each class 3 captive insurance company; or (3) $1,000 for each class 4 or class 5 captive insurance company. (c) Each captive shall pay to the commissioner a nonrefundable fee of $25 for the preparation and §16-17-6 17-4 issuance of each of the following: certificates of compliance, deposit, application, capital and surplus, transcript of records, annual statements, report of examination, and other certifications as may be necessary, but excluding certificates of authority. (d) Each captive shall pay to the commissioner a nonrefundable fee of twenty-five cents per side of each page for photocopies of documents. (e) The rates and fees charged by approved independent advisors and consultants used by the commissioner shall be subject to the review of the commissioner. [Eff 5/13/91; am and comp 3/12/01; am and comp 08/18/16; comp 08/17/19] (Auth: HRS §§431:19-102, 431:19-102.3, 431:19-106, 431:19-114, 431:19-115) (Imp: HRS §431:19-102) §16-17-7 Examination, investigation, and financial surveillance expenses. (a) Captive insurance companies subject to examination, investigation, or financial surveillance shall be responsible for the payment of expenses associated with the examination, investigation, or financial surveillance. Examination, investigation, and financial surveillance expenses shall include costs, mileage, and other reasonable and appropriate expenses associated with the examination, investigation, or financial surveillance, as determined by the commissioner. (1) If insurance division staff are employed in the examination, investigation, or financial surveillance of a captive insurance company, the captive insurance company shall be liable for the following additional examination fees: (A) Administration at a rate of $30 per hour or fraction thereof; (B) Examiner I at a rate of $50 per hour or fraction thereof; (C) Examiner II at a rate of $55 per hour or fraction thereof; and §16-17-10 17-5 (D) Examiner III at a rate of $60 per hour or fraction thereof. (2) If an independent contractor is employed or retained by the commissioner in the examination, investigation, or financial surveillance of a captive insurance company, the captive insurance company shall be liable for the charges of services rendered. (b) Upon presentation of an invoice incurred from the examination, investigation, or financial surveillance, the captive insurance companies shall pay the commissioner for the expenses incurred from the examination, investigation, or financial surveillance. The payment shall be credited to the captive insurance administrative fund. [Eff and comp 3/12/01; am and comp 08/18/16; am and comp 08/17/19] (Auth: HRS §§431:2-306, 431:19-108, 431:19-114, 431:19-115) (Imp: HRS §§431:2-306, 431:19-108, 431:19-115) §16-17-10 Notification of material misstatement of financial condition or adverse financial condition. (a) A captive shall require its independent certified public accountant to immediately notify the captive's governing body or audit committee in writing of any determination by the independent certified public accountant that the captive has materially misstated its financial condition in the captive's annual report or is in adverse financial condition. The independent certified public accountant shall provide written notification of material misstatement of financial condition or adverse financial condition to the commissioner within five working days of providing notice to the captive. The captive manager shall provide a written remediation or corrective action plan to the commissioner within thirty days of the independent certified public accountant providing notice to the commissioner. §16-17-10 17-6 (b) As used in this section, "annual report" means the National Association of Insurance Commissioners’ annual statement and the audited financial statement prepared by an independent certified public accountant for a captive and required to be filed with the commissioner pursuant to section 431:19-107, 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, 431:19-115) (Imp: HRS §§431:19-107, 431:19-108, 431:19-115)