Background

Act 253, Hawaii’s Captive Insurance Law, was enacted on May 29, 1986, and took effect on July 1, 1987. The law was initially designated under Chapter 431J of the Hawaii Revised Statutes, and subsequently redesignated as Article 19 of Chapter 431 on July 1, 1988 when the Hawaii Insurance Laws were revised and recodified.

Since the Hawaii captive law was enacted in 1987, there has been a steady increase in the number of new companies incorporated in Hawaii for the sole purpose of securing a captive insurance license from the Insurance Commissioner. Organizers include some of Hawaii’s largest employers, as well as, U.S. and foreign based regional and multinational companies from a diverse range of industries.