(a) No person, firm, association, or corporation shall act as a reinsurance intermediary-broker in this State if the reinsurance intermediary-broker maintains an office either directly or as a member or employee of a firm or association, or as an officer, director, or employee of a corporation:

Terms Used In Hawaii Revised Statutes 431:9B-102

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
  • Service of process: The service of writs or summonses to the appropriate party.
(1) In this State, unless the reinsurance intermediary-broker is a licensed producer or reinsurance intermediary in this State; or
(2) In another state, unless the reinsurance intermediary-broker is a licensed producer in this State or another state having a law substantially similar to this article.
(b) No person, firm, association, or corporation shall act as a reinsurance intermediary-manager in this State unless:

(1) In the case of a reinsurer domiciled in this State, the reinsurance intermediary-manager is a licensed producer in this State; or
(2) The reinsurance intermediary-manager maintains an office either directly or as a member or employee of a firm or association, or as an officer, director, or employee of a corporation in this State, and is a licensed producer or reinsurance intermediary in this State.
(c) The commissioner may require a reinsurance intermediary-manager subject to subsection (b) to:

(1) File a bond from an insurance company licensed to do business within the State or with an insurance company approved by the commissioner, in an amount equal to $500,000 or ten per cent of the annual reinsurance premiums managed by the reinsurance intermediary-manager, whichever is greater, except that the bond amount under this paragraph shall not exceed $10,000,000, for the protection of the reinsurer;
(2) Maintain an errors and omissions policy with an insurance company licensed to do business within the State or with an insurance company approved by the commissioner, in an amount equal to $250,000 or twenty-five per cent of the annual reinsurance premiums managed by the reinsurance intermediary-manager, whichever is greater, except that the policy limits under this paragraph shall not exceed $10,000,000; and
(3) Provide any other report required by the commissioner.

At the commissioner’s request, the reinsurance intermediary-manager shall provide the commissioner with proof of the bond and policy and appropriate documentation to show that the bond and policy continue to be in effect, or that a new bond and new policy have been secured.

(d)

(1) The commissioner may issue a reinsurance intermediary license to any person, firm, association, or corporation that has complied with the requirements of this article. Any reinsurance intermediary license issued to a firm or an association shall authorize all the members of that firm or association and any designated employees to act as reinsurance intermediaries under the license, and all those persons shall be named in the application and any supplements thereto. Any reinsurance intermediary license issued to a corporation shall authorize all of the officers, and any designated employees and directors thereof, to act as reinsurance intermediaries on behalf of the corporation, and all those persons shall be named in the application and any supplements thereto.
(2) If the applicant for a reinsurance intermediary license is a nonresident, the applicant, as a condition precedent to receiving or holding a license, shall designate the commissioner as agent for service of process in the manner and with the same legal effect provided for by this article for service of process upon unauthorized insurers. The applicant also shall furnish the commissioner with the name and address of a resident of this State upon whom notices or orders of the commissioner or process affecting the nonresident reinsurance intermediary may be served. The licensee shall promptly notify the commissioner in writing of every change in its designated agent for service of process, and the change shall not become effective until acknowledged by the commissioner.
(3) The commissioner shall issue a nonresident reinsurance intermediary license if:

(A) The applicant is currently licensed as a resident reinsurance intermediary or an insurance producer pursuant to article 9A and in good standing in the applicant’s home state;
(B) The applicant has submitted the proper request for licensure and paid the fees required by § 431:7-101;
(C) The applicant has submitted or transmitted to the commissioner the application for licensure that the applicant submitted to the applicant’s home state or, in lieu of the same, a completed uniform application; and
(D) The person’s home state awards nonresident licenses to residents of this State on the same basis.
(e) The commissioner may refuse to issue a reinsurance intermediary license if, in the commissioner’s judgment, the applicant, anyone named on the application, or any member, principal, officer, or director of the applicant, is not trustworthy, or that any controlling person of the applicant is not trustworthy to act as a reinsurance intermediary, or that any of the foregoing has given cause for revocation or suspension of the license, or has failed to comply with any prerequisite for the issuance of the license. Upon written request therefor, the commissioner shall furnish a summary of the basis for refusal to issue a license, which document shall be privileged and not subject to disclosure pursuant to chapter 92F.
(f) Licensed attorneys at law of this State, when acting in their professional capacity as such, shall be exempt from this section.
(g) Licensing procedure, duration, and related matters affecting reinsurance intermediaries shall be governed by articles 7 and 9A.

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