General Information:

  1. Hawaii does not maintain a list of eligible surplus lines insurers.
  2. Hawaii does not have a Surplus Lines Association.
  3. Hawaii does not have an Export List.
  4. Hawaii does not have an industrial insured exemption but does recognize the exempt commercial purchaser exemption under NRRA.
  5. Surplus lines tax: 4.68%, payable by broker.
  6. On June 7, 2012, Hawaii submitted a notice of withdrawal from NIMA. All quarterly surplus lines taxes for policies (both multi-state and single-state) where Hawaii is deemed the home state should be filed with the Hawaii Insurance Division.

Eligibility and Filing Requirements (All Insurers):

Hawaii does not impose a fee or request financial premium or other information from foreign and/or alien surplus lines insurers for surplus lines eligibility purposes. Under Hawaii’s surplus lines laws, the surplus lines broker is responsible for determining if the surplus lines insurer meets the eligibility requirements under our laws.

Eligibility and Filing Requirements (Alien Insurers Only):

Insurer must be on IID list, provided that (a) if an alien insurer is not on the IID list, the surplus lines broker shall maintain in the broker’s office evidence of the financial responsibility of the insurer; and (b) evidence to the commissioner that the insurer maintains in the United States a $5,400,000 trust fund.

Eligibility and Filing Requirements (Foreign Insurers Only):

  1. Surplus lines broker may place surplus lines insurance only with insurers who are authorized to write that type of insurance in the insurer’s domiciliary state.
  2. A surplus lines broker may not place coverage with an unauthorized insurer unless, at the time of placement, the surplus lines broker has determined that the unauthorized insurer has capital and surplus or its equivalent under the laws of its domiciliary state that equal the greater of the minimum capital requirements of this State or a minimum of $15,000,000.

Types of Insurance Exempted from Surplus Lines Regulation:

  1. Ocean marine insurance.
  2. Insurance on subjects located, resident, or to be performed wholly outside Hawaii, or on vehicles or aircraft owned and principally garaged outside Hawaii.
  3. Insurance of aircraft or cargo of such aircraft, or against liability, other than workers’ compensation and employers’ liability, arising out of the ownership, maintenance, or use of such aircraft.

Other Comments or Requirements:

  1. Upon request of the Commissioner, the broker must immediately submit documentary evidence as to the financial responsibility of the insurer.
  2. Hawaii enacted legislation in 2011 which defines “Surplus lines insurance” to mean “any property and casualty insurance on risks procured from or placed with an unauthorized insurer under the laws of the insured’s home state.”
  3. Every insurance contract procured and delivered as surplus lines coverage, including any evidence of insurance other than a policy, must:
    • Bear the name and address of the surplus lines broker who procured it, and
    • Have stamped or written conspicuously upon the first page of the contract the following:
    “This insurance contract is issued by an insurer which is not licensed by the State of Hawaii and is not subject to its regulation or examination. If the insurer is found insolvent, claims under this contract are not covered by any guaranty fund of the State of Hawaii.”