Terms Used In Hawaii Revised Statutes > Chapter 431 > Article 19 - Captive Insurance Companies

• Acquiring person: means a person who is required to deliver an information statement. See Hawaii Revised Statutes 414E-1
• Administrator: means the captive insurance administrator established in section 431:19-101. See Hawaii Revised Statutes 431:19-101
• Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
• Affiliated entity: means any company, person, or other entity in the same corporate system as a parent or a member organization by virtue of common ownership, control, operation, or management. See Hawaii Revised Statutes 431:19-101
• Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
• Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Association: means two or more members who are engaged in business or activities similar or related to the liability to which these members are exposed by virtue of any related, similar, or common business trade, product, services, premises, or operations; provided that the members of the association shall be individuals, corporations, limited liability companies, partnerships, associations, or other entities, except labor organizations, the member organizations of which or which does itself, whether or not in conjunction with some or all of the member organizations:

  (1) Own, control, or hold with power to vote all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurer;

  (2) Have complete voting control over an association captive insurance company incorporated as a mutual insurer;

  (3) Constitute all of the subscribers of an association captive insurance company formed as a reciprocal insurer; or

  (4) Have complete voting control over an association captive insurance company formed as a limited liability company. See Hawaii Revised Statutes 431:19-101

• Association captive insurance company: means a captive insurance company that insures risks of the member organizations of the association, and that may insure the risks of affiliated entities of the member organizations and the risks of the association itself. See Hawaii Revised Statutes 431:19-101
• Attorney general: means the state attorney general or deputy attorneys general. See Hawaii Revised Statutes 245-1
• Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
• Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. ^{Source: OCC}
• Branch captive insurance company: means an outside captive insurance company licensed under this article by the commissioner to transact the business of insurance in this State through a business unit that has its principal place of business in this State. See Hawaii Revised Statutes 431:19-101
• captive insurer: means a class 1 company, class 2 company, class 3 company, class 4 company, or class 5 company formed or authorized under this article. See Hawaii Revised Statutes 431:19-101
• Cigarette: means any roll for smoking made wholly or in part of tobacco, irrespective of size and shape and whether or not the tobacco is flavored, adulterated, or mixed with any other ingredient, the wrapper or cover of which is made of paper or any other substance or material except tobacco. See Hawaii Revised Statutes 245-1
• Continuance: Putting off of a hearing ot trial until a later time.
• Contract: A legal written agreement that becomes binding when signed.
• Control share acquisition: means an acquisition of shares of an issuing public corporation resulting in beneficial ownership by an acquiring person of a new range of voting power specified in this chapter, but does not include an acquisition:

  (1) Before or pursuant to an agreement entered into before July 1, 1987;

  (2) By a donee pursuant to an inter vivos gift not made to avoid this chapter or by a distributee as defined in chapter 560;

  (3) Pursuant to a security agreement not created to avoid this chapter;

  (4) Pursuant to a merger or share exchange executed in accordance with applicable law, if the issuing public corporation is a party to the plan of merger or share exchange;

  (5) From the issuing public corporation;

  (6) That is approved by resolution of the board of directors of the issuing public corporation before the acquisition occurs; or

  (7) That the board of directors of the issuing public corporation determines, by resolution before the acquisition occurs, is not a control share acquisition. See Hawaii Revised Statutes 414E-1

• Controlled unaffiliated business: means , in the case of a pure captive insurance company, any person:

  (1) That is not in the corporate system of a parent and its affiliated entities;

  (2) That has an existing contractual relationship with a parent or one of its affiliated entities; and

  (3) Whose risks are managed by the pure captive insurance company. See Hawaii Revised Statutes 431:19-101

• Conviction: A judgement of guilt against a criminal defendant.
• 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.
• county: includes the city and county of Honolulu. See Hawaii Revised Statutes 1-22
• Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
• Department: means the department of taxation. See Hawaii Revised Statutes 245-1
• Director: means the director of commerce and consumer affairs. See Hawaii Revised Statutes 415A-2
• Disqualified person: means any natural person, corporation, partnership, fiduciary, trust, association, government agency, or other entity which for any reason is or becomes ineligible under this chapter to own shares issued by a professional corporation. See Hawaii Revised Statutes 415A-2
• distribution: means to sell, ship, transfer, give, or deliver to another, or to leave, barter, or exchange with another, or to offer or agree to do the same. See Hawaii Revised Statutes 245-1
• Donee: The recipient of a gift.
• Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. ^{Source: OCC}
• Entity: means one or more individuals, a company, corporation, a partnership, an association, or any other type of legal entity. See Hawaii Revised Statutes 245-1
• Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. ^{Source: U.S. Courts}
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. ^{Source: OCC}
• Fiduciary: A trustee, executor, or administrator.
• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• Fraud: Intentional deception resulting in injury to another.
• Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
• Governing body: means the board of directors, subscriber's advisory committee, membership, or other entity responsible for the governance of a captive insurance company. See Hawaii Revised Statutes 431:19-101
• Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. ^{Source: FDIC}
• Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
• Inter vivos: Transfer of property from one living person to another living person.
• Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
• Issuing public corporation: means a corporation incorporated in this State with at least one hundred shareholders and having its principal place of business or substantial assets located in this State. See Hawaii Revised Statutes 414E-1
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• License: means a license granted under this chapter, that authorizes the holder to engage in the business of a wholesaler or dealer of cigarettes or tobacco products in the State. See Hawaii Revised Statutes 245-1
• Licensee: means the holder of a license as a wholesaler or dealer granted under this chapter. See Hawaii Revised Statutes 245-1
• Licensing authority: means the officer, board, agency, court, or other authority in this State which has the power to issue a license or other legal authorization to render a professional service. See Hawaii Revised Statutes 415A-2
• Member organization: means any individual, corporation, limited liability company, partnership, association, or other entity that belongs to an association. See Hawaii Revised Statutes 431:19-101
• month: means a calendar month; and the word "year" a calendar year. See Hawaii Revised Statutes 1-20
• oath: includes a solemn affirmation. See Hawaii Revised Statutes 1-21
• Oath: A promise to tell the truth.
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Organizational document: means a captive insurance company's articles of association, articles of incorporation, articles of organization, subscribers' agreement, bylaws, operating agreement, or any other document that establishes the captive insurance company as a legal entity or prescribes its existence. See Hawaii Revised Statutes 431:19-101
• Other entity: includes a domestic or foreign corporation, whether organized for profit or not, a domestic or foreign limited liability company, general partnership, limited partnership, or limited liability partnership. See Hawaii Revised Statutes 415A-2
• Outside captive insurance company: means an insurance company licensed under the laws of a jurisdiction other than this State and not otherwise admitted to do business as an insurance company in this State, that insures the risks of its parent or any affiliated entities. See Hawaii Revised Statutes 431:19-101
• Parent: means a corporation, limited liability company, partnership, other entity, or individual, that directly or indirectly owns, controls, or holds with power to vote more than fifty per cent of the outstanding voting interests of a pure captive insurance company organized as a stock corporation, nonprofit corporation, or limited liability company. See Hawaii Revised Statutes 431:19-101
• Participant: means an entity that meets the requirements of § 431:19-305, and any affiliated entities thereof that are insured by a sponsored captive insurance company where the losses of the participant may be limited through a participant contract to the participant's pro rata share of the assets of one or more protected cells identified in the participant contract. See Hawaii Revised Statutes 431:19-101
• Participant contract: means a contract by which a sponsored captive insurance company insures the risks of a participant and may also limit the losses of each participant to its pro rata share of the assets of one or more protected cells identified in such participant contract. See Hawaii Revised Statutes 431:19-101
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Personal property: All property that is not real property.
• Persons: means one or more people, a company, corporation, a partnership, or an association. See Hawaii Revised Statutes 245-1
• Plaintiff: The person who files the complaint in a civil lawsuit.
• Possession: means knowingly having direct physical control at a given time or knowingly having the power and the intention, at a given time, to exercise dominion or control, either directly or through another entity. See Hawaii Revised Statutes 245-1
• Professional corporation: means a domestic professional corporation for profit subject to this chapter. See Hawaii Revised Statutes 415A-2
• Professional service: means any service that lawfully may be rendered only by persons licensed under chapters 442, 448, 453, 455, 457, 459, 461, 463E, 465, 466, 471, and 605. See Hawaii Revised Statutes 415A-2
• Protected cell: means a separate account established by a sponsored captive insurance company formed or licensed under this article in which assets are maintained for one or more participants in accordance with the terms of one or more participant contracts to fund the liability of the sponsored captive insurance company assumed on behalf of the participants as set forth in the participant contracts. See Hawaii Revised Statutes 431:19-101
• Pure captive insurance company: means a captive insurance company that only insures or reinsures risks of its parent and affiliated entities or of a controlled unaffiliated business. See Hawaii Revised Statutes 431:19-101
• Qualified person: means an individual who is eligible under this chapter to own shares issued by a professional corporation. See Hawaii Revised Statutes 415A-2
• Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
• Risk retention captive insurance company: means a captive insurance company that is formed as a "risk retention group" as defined in chapter 431K. See Hawaii Revised Statutes 431:19-101
• Sale: includes every act of selling and includes any sale or act of selling that originates from any order that is placed or submitted by means of a telephonic or other method of voice transmission, the mail, or any other delivery service, or the Internet or other online service. See Hawaii Revised Statutes 245-1
• Sell: means to:

  (1) Solicit and receive an order for;

  (2) Have, keep, offer, or expose for sale;

  (3) Deliver for value or deliver in any other way than purely gratuitously;

  (4) Peddle;

  (5) Keep with intent to sell; and

  (6) Traffic in. See Hawaii Revised Statutes 245-1

• Service of process: The service of writs or summonses to the appropriate party.
• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• sold: includes any delivery of cigarettes or tobacco products, whether cash is actually paid therefor or not. See Hawaii Revised Statutes 245-1
• Sponsor: means any entity that meets the requirements of § 431:19-304 and is approved by the commissioner to provide all or part of the minimum required capital and surplus of a sponsored captive insurance company and to organize and operate a sponsored captive insurance company. See Hawaii Revised Statutes 431:19-101
• Sponsored captive insurance company: means a captive insurance company:

  (1) In which the minimum required capital and surplus is provided by one or more sponsors;

  (2) That is formed or licensed under this article;

  (3) That insures the risks only of its participants through separate participant contracts; and

  (4) That may fund its liability to each participant through one or more protected cells. See Hawaii Revised Statutes 431:19-101

• Stamp: means a stamp printed, manufactured, or made by authority of the department, as provided in this chapter, that is issued, sold, or circulated by the department, and by the use of which the tax levied under this chapter is paid. See Hawaii Revised Statutes 245-1
• Subpoena: A command to a witness to appear and give testimony.
• Temporary restraining order: Prohibits a person from an action that is likely to cause irreparable harm. This differs from an injunction in that it may be granted immediately, without notice to the opposing party, and without a hearing. It is intended to last only until a hearing can be held.
• Tobacco products: means :
  (1) Tobacco in any form, other than cigarettes or little cigars, that is prepared or intended for consumption or for personal use by humans, including large cigars and any substitutes thereof other than cigarettes that bear the semblance thereof, snuff, chewing or smokeless tobacco, and smoking or pipe tobacco; or
  (2) Electronic smoking devices; or
  (3) E-liquid. See Hawaii Revised Statutes 245-1
• Tobacco tax: means the tax imposed by this chapter. See Hawaii Revised Statutes 245-1
• Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
• Trustee: A person or institution holding and administering property in trust.
• Use: means the exercise of any right or power incident to ownership or possession, other than the sale, or the keeping or retention for the purpose of sale. See Hawaii Revised Statutes 245-1