Current through February, 2024
This chapter shall not apply to the following:
(1) Reinsurance of:
(A) Policies that satisfy the criteria for
exemption set forth in section
16-171-905(f)
or (g); and which are issued before the later
of:
(i) The effective date of this chapter,
and
(ii) The date on which the
ceding insurer begins to apply the provisions of VM-20 to establish the ceded
policies' statutory reserves, but in no event later than January 1,
2020;
(B) Portions of
policies that satisfy the criteria for exemption set forth in section
16-171-905(e)
and which are issued before the later of:
(i)
The effective date of this chapter, and
(ii) The date on which the ceding insurer
begins to apply the provisions of VM-20 to establish the ceded policies'
statutory reserves, but in no event later than January 1,
2020;
(C) Any universal
life policy that meets all of the following requirements:
(i) Secondary guarantee period, if any, is
five (5) years or less;
(ii)
Specified premium for the secondary guarantee period is not less than the net
level reserve premium for the secondary guarantee period based on the
Commissioners Standard Ordinary valuation tables and valuation interest rate
applicable to the issue year of the policy; and
(iii) The initial surrender charge is not
less than one hundred percent (100%) of the first-year annualized specified
premium for the secondary guarantee period;
(D) Credit life insurance;
(E) Any variable life insurance policy that
provides for life insurance, the amount or duration of which varies according
to the investment experience of any separate account or accounts; or
(F) Any group life insurance certificate
unless the certificate provides for a stated or implied schedule of maximum
gross premiums required in order to continue coverage in force for a period in
excess of one year;
(2)
Reinsurance ceded to an assuming insurer that meets the applicable requirements
of section
431:4A-101(d),
HRS;
(3) Reinsurance ceded to an
assuming insurer that meets the applicable requirements of section
431:4A-101(b)
or (c), HRS, and that, in addition:
(A) Prepares statutory financial statements
in compliance with the National Association of Insurance Commissioners
Accounting Practices and Procedures Manual, without any departures from the
National Association of Insurance Commissioners' statutory accounting practices
and procedures pertaining to the admissibility or valuation of assets or
liabilities that increase the assuming insurer's reported surplus and are
material enough that they need to be disclosed in the financial statement of
the assuming insurer pursuant to Statement of Statutory Accounting Principles
No. 1; and
(B) Is not in a company
action level event, regulatory action level event, authorized control level
event, or mandatory control level event as those terms are defined in chapter
431, article 3, part IV, HRS, when its riskbased capital is calculated in
accordance with the life risk-based capital report including overview and
instructions for companies, as the same may be amended by the National
Association of Insurance Commissioners from time to time, without
deviation;
(4)
Reinsurance ceded to an assuming insurer that meets the applicable requirements
of section
431:4A-101(b)
or (c), HRS, and that, in addition:
(A) Is not an affiliate, as that term is
defined in section
431:11-102, HRS, of:
(i) The insurer ceding the business to the
assuming insurer; or
(ii) Any
insurer that directly or indirectly ceded the business to that ceding
insurer;
(B) Prepares
statutory financial statements in compliance with the National Association of
Insurance Commissioners Accounting Practices and Procedures Manual;
(C) Is both:
(i) Licensed or accredited in at least 10
states (including its state of domicile), and
(ii) Not licensed in any state as a captive,
special purpose vehicle, special purpose financial captive, special purpose
life reinsurance company, limited purpose subsidiary, or any other similar
licensing regime; and
(D)
Is not, or would not be, below five hundred percent (500%) of the authorized
control level risk-based capital as that term is defined in chapter
431, article 3, part IV, HRS, when
its risk-based capital is calculated in accordance with the life risk-based
capital report including overview and instructions for companies, as the same
may be amended by the National Association of Insurance Commissioners from time
to time, without deviation, and without recognition of any departures from
National Association of Insurance Commissioners' statutory accounting practices
and procedures pertaining to the admission or valuation of assets or
liabilities that increase the assuming insurer's reported surplus;
(5) Reinsurance ceded to an
assuming insurer that meets the requirements of either section
431:4A-104(b)(4)(A) or
(B), HRS; or (6) Reinsurance not otherwise
exempt under subsections (a) through (e) if the insurance commissioner
("commissioner"), after consulting with the National Association of Insurance
Commissioners' Financial Analysis Working Group or other group of regulators
designated by the National Association of Insurance Commissioners, as
applicable, determines under all the facts and circumstances that all of the
following apply:
(A) The risks are clearly
outside of the intent and purpose of this chapter (as described in section
16-187-101) ;
(B) The risks are
included within the scope of this chapter only as a technicality; and
(C) The application of this chapter to those
risks is not necessary to provide appropriate protection to policyholders. The
commissioner shall publicly disclose any decision made pursuant to subsection
(f) to exempt a reinsurance treaty from this chapter, as well as the general
basis therefor (including a summary description of the treaty).