SB1369 amends Hawaii insurance law to change the filing deadlines and terminology for quarterly net solvency reports submitted by three types of regulated entities: domestic mutual benefit societies, health maintenance organizations (HMOs), and dental insurers. Under the bill, these entities must submit their reports to the insurance commissioner by the 45th day after each of the first three calendar quarters, and for the fourth quarter by March 1 of the following year. The reports must be verified by at least two principal officers, and each entity must keep a current copy at its primary place of business.
The bill also clarifies enforcement language. For mutual benefit societies and HMOs, failure to prepare or submit the report can trigger a daily penalty of at least $100 and no more than $500. For dental insurers, the bill aligns the reporting and examination provisions with existing penalty language under a separate statute. The measure takes effect on October 1, 2025.
Impact
The bill updates sections of Title 24 of the Hawaii Revised Statutes governing solvency oversight for mutual benefit societies, HMOs, and dental insurers. It changes report timing from a generic quarterly deadline to a more specific schedule tied to the first three calendar quarters and the fourth quarter ending December 31, while preserving the commissioner’s authority to prescribe forms, require on-site retention of reports, and order examinations for compliance. It also standardizes or cross-references penalties for noncompliance, reinforcing the insurance commissioner’s enforcement tools over these regulated health and benefit entities.
Sentiment
The available legislative history suggests the bill was noncontroversial and received favorable treatment in committee, passing the Senate Commerce and Consumer Protection Committee unanimously, 4-0, with amendments. No committee transcript is provided, but the absence of recorded opposition and the technical nature of the changes indicate general support for the measure as a regulatory clarification and reporting update.
Contention
There is little evidence of substantive controversy in the materials provided. Any potential points of discussion would likely center on administrative burden, compliance timing, and the scope of penalties for late or missing solvency reports, particularly for smaller mutual benefit societies and insurers. However, the bill appears primarily technical and procedural, and the committee vote suggests no significant disagreement over the policy direction.
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