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P.O. Box 2815 Honolulu, Hawaii 96803
Minutes
Hawaii Captive Insurance Council Corporation Meeting of the Executive Committee
Wednesday, April 8, 2015 Honolulu, HI
10:00 am (Hawaii Standard Time) ‐ 1:00pm (Pacific Standard Time)
Offices of AON Insurance Managers 201 Merchant Street, 24th Floor
Honolulu, Hawaii 96813 Attendees: Excused:
Fay Okamoto Jerelyn Brown Matthew Takamine ‐ Teleconference Ward Ching – Teleconference Paul Wagner ‐ Teleconference Ryan Nobriga Christina Kamaka Jamie Asato Invited Guests: Gerald Yoshida – Teleconference Jill Miura ‐ Teleconference Scot Sterenberg Ed Haik
Jason Palmer
Agenda Item Comments/Follow Up
A.
Call to order
Meeting was called to order by Fay Okamoto at 10:03 am.
B. Minutes of the February 11, 2015 Executive Committee meeting
Approved as presented.
C. Committee Reports
Legislative Committee: Gerald Yoshida reported. See committee report. Gerald reported that the proposal to amend Internal Revenue Code Section 831(b) was discussed at CICA. Legislative Committee is monitoring progress of the proposal
‐ it is not a bill yet. Membership: Ed Haik reported. See committee report. Ed asked Captive Managers to assist with reaching out to new captive owners to inform them of the first year free membership. Ed will also follow up with service provider members who have not renewed. Finance: As this meeting was close to quarter end, Finance will provide their report at the April Board meeting. Marketing: Paul Shimomoto provided his report. See committee report. Matthew Takamine updated the EC that there is no update to progress with getting HID’s monetary support for the Japan Seminar. The Commissioner has been provided with the information he asked for. Awaiting response, but moving forward regardless. Fay asked Ed, Paul and Matt to reach out to captive owner members to solicit interest in attending Hawaii on the Hill Scot Sterenberg gave a report on how CICA went. Well attended, but slight drop in participation, likely due to the location (east coast). Focus on small captive issues. Website: Nothing to report. Scot requested that the positioning of the Forum link on the website be more prominent. Discussion was held about WRIN TV. Decision to keep the link to WRIN TV on the website, just move the placement. Ward Ching will coordinate with Kari Nettel to make these website changes. Education & Forum: Jill Miura and Scot reported. See committee reports. Jill asked the EC and others if they had any suggestions for Oahu locations for the Forum. Ed suggested that if the Kahala was to be considered, Waialae Country Club could be considered as an additional location to accommodate the lack of meeting rooms. Jill also asked the EC if anyone had contacts at the Sheraton Waikiki as historically they have not been responsive. Ed said that John Takushi could be contacted as a first point of
contact. Scot reported that we have received about 11 session suggestions. Forum committee will be meeting to review and discuss if further recruitment of sessions will be required. Rough schedule set. Golf and Community Service activities will be on Wednesday afternoon of the Forum. Fay inquired about possible time slots for HCIC Board meeting at the Forum – under consideration are Wednesday late morning after ICCIE Wednesday morning webcast. Industry Liaison Update: See committee report. Government Relations Update: Matthew Takamine reported that he is trying to schedule our next quarterly meeting with HID.
D. Other Business
Upcoming Events – RIMS – Matt is coordinating the dinner with HID and for others from industry. Discussion was held regarding who is attending this RIMS dinner. Agreement that invitation is extended to those that volunteered to man the booth, current or past HCIC Board members and HID. Fay notified Board of the confirmed date, location and time of the Strategic Planning Meeting.
E. Adjournment
The meeting was adjourned at 10:55 am.
P.O. Box 2815 Honolulu, Hawaii 96803
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A G E N D A
Meeting of the Executive Committee Wednesday, April 8, 2015 10:00 am (Hawaii Time) 1:00 pm (Pacific Time)
Offices of AON Insurance Managers 201 Merchant Street, 24th floor
Honolulu, HI 96813
Dial +1 (805) 309‐0027 Access Code / Meeting ID: 928‐856‐213
A. Call to Order/Determination of Quorum
B. Approval of the February 11, 2015 Executive Committee meeting minutes
C. Committee Reports
Legislative
Membership
Finance
Marketing
Website
Education & Forum
Japan Marketing
Industry Liaison Update
Government Relations Update
D. Other Business (if not otherwise covered by committee reports)
HAR Admin Rules update
CICA report
NAIC (F) Committee proposed Accreditation Standards Preamble
Upcoming Events – RIMS April 26‐29
Upcoming Events – Hawaii on the Hill June 9‐10
Next Meeting Strategic Planning Session– June 25, 2015
E. Adjournment
P.O. Box 2815 Honolulu, Hawaii 96803
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Prior Year Planning Meeting – Action Items Planning meeting was held in May 2014. The Board conducted a “refresher” review of the items at its November 2014 meeting. We are attaching to each Executive Committee agenda to continue refreshing our memories and confirming relevance of our targets for 2014‐15 Marketing items:
West Coast trip, July 2014 seemed well received
Pacific Northwest, 2015?
Coordinate dates around other known events (e.g. RIMs, CICA, etc.)
Pursue speaking opportunities / session submissions to other organizations: o Local RIMS – Western Region RIMs conference o Local RIMS – others? o CPCU next annual conference in Hawaii – 2016 o CFMA o ASHRM o RIMs national o CICA o World Captive Forum o SIIA (more interest in medical stop loss captives) o University Risk Management programs
More frequent press releases – propose to have VPs oversee / coordinate more frequent communications
Forum Scholarship:
Positive feedback from 2014 recipients. Need to keep in touch with them.
Suggest limiting to 3 recipients for 2015 Forum.
Suggest opening the practicum (why Hawaii, formation process) to all interested participants. Regulatory Opportunities:
New administration may be opportunity for dialogue
Effective & efficient exam procedures (certain procedures annually rather than only every 5 years)
Consistency of exam findings vs. comments vs. best practices
Re‐evaluate applicability of Article 2 (examiners handbook) to pure captives Government Relations:
Established dedicated government relations liaison and outline of 2015 action plan
Evaluated PAC and determined it might not be the optimum vehicle to support lobbying efforts
Designate a portion of HCIC membership dues for “lobbying” activities, and continue grass roots efforts
Contact during administration transition is suggested, particularly at DCCA level. Sponsorships & other items:
Higher level of sponsorship to be made available for 2015 Forum.
ICCIE – drawing for “free” ICCIE session to be considered at 2015 Forum.
Industry liaison – schedule for 2015 events. Increased participation in CICA initiatives?
Purchase of laptops / projectors – under consideration by Education committee
Legislative Committee Report
Date: April 8, 2015
Submitted by: Jerry Yoshida
Committee Members: Jerelyn Brown Danel Licari Paul Shimomoto Ward Ching
Capri Haga Edward Haik Mark Hironaga Christina Kamaka
Chris Mertes Jill Miura Fay Okamoto Jason Palmer
Scot Sterenberg Matt Takamine Colin Teraoka Paul Wagner Jerry Yoshida
A. Subject: Proposed Administrative Rules: Following discussion at the last HCIC Executive Committee and Board meeting, Fay Okamoto transmitted a
notated version of draft #3 of the proposed changes to the captive administrative rules. We are still awaiting feedback and a further meeting with Sanford on this matter.
B. Subject: NAIC F Committee Proposal re Multi-‐State Captive Reinsurers: On February 24, 2015, NAIC staff transmitted a memo and proposed revisions to the Part A Preamble regarding
captive life/health reinsurers. On March 17, 2015 the Chair of the F Committee and Chair of the E Committee issued a memorandum to clarify that the proposed Preamble revisions are intended to apply to only XXX, AXXX, variable annuity and long-‐term care captive reinsurance transactions. The F Committee received numerous comments prior to and at its March meeting in Phoenix, including that the language is still ambiguous. As a result, the F Committee deferred action on the matter and instructed staff to further redraft the Preamble so as to remove any ambiguity. A further revised Preamble is expected to be exposed prior to the next NAIC meeting.
C. Subject: 2015 Hawaii Legislation (changes from last report are noted in red): 1. HB281: Requires the auditor to conduct a study on the feasibility of the State of Hawaii establishing a
captive insurance company to manage the State's property and casualty insurance risks. Appropriates funds for the feasibility study. Passed second reading in the House but did not crossover to the Senate.
2. SB1265 and HB1284: Companion bills to amend various provisions of the Insurance Holding Company
System provisions of the Insurance Code. The Legislature is moving wtith the Senate bill. SB1265 crossed over to the House, heard by House CPC and scheduled for decision-‐making by House Judiciary. No substantive changes.
3. SB1094 and HB925: Companion bills to amend various provisions of the Insurance Code as well as some
other provisions relating to insurers over which the Commissioner has regulatory jurisdiction. The Legislature is moving with the Senate bill. There are some provisions relating to Chapter 431K that would impose fees upon purchasing groups and foreign RRGs, as well as revise certain provisions relating to required filings of foreign RRGs.
P.O. Box 2815 Honolulu, Hawaii 96803
Membership Committee Report to Executive Committee
Date: 04/08/15
Submitted by: Danel Licari/Ed Haik (Co-Chairs) A. 2015 Membership Renewals
1) 2015 Membership – total 76 members - 46 captive owners (44 X $325 = $14,300). Count includes two free memberships for formations.
- 30 service providers (30 X $800 = $24,000) - Total revenues from service provider and owner members for 2015 = $38,300.
2) 2014 Membership – total 89 members to date - 55 captive owners (49 X $325 = $15,925) Count includes six free memberships (3 formations, 3 anniversaries). - 34 service providers (34 X $800 = $27,200) - Total revenues from service provider and owner members for 2014 = $43,125.
B. 2015 Hotel Benefit Renewals 1) Hotels renewed (website updated): Pending renewals: - Hilton Hawaiian Village - Sheraton Waikiki - Sheraton Maui - Hawaii Prince - Royal Hawaiian - JW Marriott Ihilani - Mauna Kea Resort - Moana Surfrider - Kapalua Ritz - Hapuna Beach Prince - Halekulani - Trump Hotel Waikiki - Parc Waikiki - Kahala Resort - Aulani
C. 2015 Membership Drive 1) Free “1st” year membership to new captive formations will continue for 2015. Eleven formations for 2014 were
offered “free” memberships in 2015 plus another five formed in 2015. So far only two have accepted and one declined since their first captive is a member. Captive managers please reach out to your new formations to take advantage of the “free” membership.
2) HCIC “Award of Excellence” to continue in 2015. 3) Membership committee will try again this year to recruit new captive owner members through anniversary
acknowledgement and gift. Two of three anniversary captives given free memberships last year renewed in 2015. 4) Six service providers have not renewed from 2014. Membership committee to follow up.
D. Ideas/Works In Progress to Increase Membership
1) Membership Committee is open to all ideas related to increasing membership and prize giveaway ideas for next year’s drawing.
2) Possible mass mailing to “new” group of potential members. Target service providers that participate at other domicile forums. Service provider trend seems to be moving towards multi-states.
3) Revisit having the HCIC member application part of captive application process & or ask for regulator “encouragement” to maintain “member in good standing” could that question “Are you a member of the HCIC in good standing?” be asked in concert with the annual licensing update?
P.O. Box 2815 Honolulu, Hawaii 96803
Marketing Committee Report to Executive Committee
08 April 2015
Offices of AON 201 Merchant, Suite 2400
Honolulu, HI 96813
• Japan Marketing Subcommittee o Met on 27 Mar 2015 to discuss outline and concept of 09 Nov 2015 Tokyo Seminar o Attendees: Paul Shimomoto, Asako Shimazu, Tomoko Wong, Jason Palmer, Colin Teraoka, Toni
Kanehira & Yusuke Aonuma o Discussed items relating to anticipated costs, SOH possible participation, format/content of
presentations and attendee invitations o Awaiting response from SOH as to whether or not they will participate/sponsor
• Hawaii on the Hill (in conjunction with Legislative Committee)
o Registration has been submitted o Confirmed attendees (so far): Ed Haik, Paul Shimomoto & Matt Takamine o Have requested meetings with Senator Hirono along with:
§ Jeb Hensarling (TX) who is on the subcommittee for Housing and Insurance. § Orrin Hatch – the Chair of the Finance Committee – represents UT – a burgeoning captive
domicile. § And any other representatives &or staff involved with the Senate Finance Committee where
the proposed 831(b) legislation started. • HCIC Banner
o Working with Kari to purchase a new banner to replace our aging/broken signage o Estimated cost: $250 - $500 for new, three panel, retractable screen system that will be lighter and
easier to transport
P.O. Box 2815 Honolulu, Hawaii 96803
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Education Report to the Executive Committee
Date: April 8, 2015
Submitted by: Jill Miura Education Committee Members: Christina Kamaka, Craig Watanabe, Jamie Asato, Jill Miura, Ryan Nobriga, Kris Olafsson (observer)
A. 2016 Forum RFP RFP to be issued by April 10th; responses requested by May 6th Target dates – October 17 – 19, 2016 Soliciting bids from the following:
Hilton Hawaiian Village Sheraton Waikiki & Resort Possible Four Seasons Ko Olina
P.O. Box 2815 Honolulu, Hawaii 96803
Forum Committee Report to Executive Committee
April 8, 2015
Honolulu, HI
Committee Members: Jason Palmer, Christina Kamaka, Jamie Asato, Jill Miura, Ed Haik, Helen Chang, Kari Nettle Scot Sterenberg, Chair
A. Initial planning meeting held in January 23 where we discussed the following ‐ Sessions and Sponsorship form ‐ Sponsorship levels and corresponding values – Added new
“Diamond” level for $12k all other levels stayed consistent with previous off island rates ‐ Set initial schedule of Events per the attached
B. Sessions update C. Sponsor update D. Next Forum Committee meeting planned for April 24 E. Plan to open registration on June 1.
P.O. Box 2815 Honolulu, Hawaii 96803
O c t o b e r 27 - 30, 2015 Grand Hyatt Kauai Resort & Spa www.hawaiicaptives.com
SCHEDULE OF EVENTS
TUESDAY, OCTOBER 27
MORNING INTERNATIONAL CENTER FOR CAP TIVE INSURANCE EDUCATION (ICCIE) WEBINAR & LIVE PANEL
AFTERNOON EDUCATIONAL SESSIONS: BASICS
AFTERNOON EXHIBITOR SET UP
DATE TIME EVENT
WEDNESDAY, OCTOBER 28
MORNING EDUCATIONAL SESSIONS
MORNING EXHIBITOR SET UP
MORNING MEETINGS/NETWORK OPPORTUNITIES
AFTERNOON HCIC SERVICE EVENT
AFTERNOON GOLF TOURNAMENT
EVENING RECEPTION & DINNER
EVENING AFTER HOURS EVENT
THURSDAY, OCTOBER 29
ALL DAY EDUCATIONAL SESSIONS
ALL DAY EXHIBITORS
MID DAY KEYNOTE SPEAKER LUNCHEON
AFTERNOON HCIC ANNUAL MEMBERSHIP MEETING
FRIDAY, OCTOBER 30
MORNING EDUCATIONAL SESSIONS
MORNING EXHIBITORS
Subject To Change
Industry Liaison Report to Executive Committee 08 April 2015
Offices of AON
201 Merchant, Suite 2400 Honolulu, HI 96813
RECAP FROM 2015 CICA CONFERENCE – LEADERSHIP COUNCIL MEETING
• Reputational Challenges Task Force
o CICA is working on a draft of a “best practices” document for 831(b)/ micro captives o Noted that Congressional staff is looking to target abusive practices by amending the IRC o Belief that IRS is overstepping its bounds by trying to regulate the captive industry
• Government Relations Leadership Council
o Need to lobby individual state commissioners to have them speak up in support of captive industry at NAIC meetings
o Noted that state commissioners are generally reluctant to speak out against NAIC initiatives
• Legislative Tracking Software being piloted by Vermont o VT is piloting “FiscalNote” – an online legislative tracking service that will hopefully help VT track all
captive related legislation nationwide. VT reports that service costs approximately $1,000 per month.
o VT will continue to test product and may recommend that CICA invest in the software going forward.
P.O. Box 2815 Honolulu, Hawaii 96803
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Synopsis
Captive Association Leadership Council Meeting
Monday, March 9, 2015
A meeting of captive association leaders was convened at 4:25 p.m. Eastern time on Monday, March 9, 2015, during the 2015 CICA International Conference in Orlando. Dennis Harwick, President of CICA, served as the facilitator of the meeting.
Participants included:
Captive Insurance Companies Association (CICA) Dennis Harwick, Scott Beckman, Skip Myers, Joel Chansky
Bermuda Insurance Owners Association Tom McMahon
Connecticut Captive Insurance Association Tom Hodson
Delaware Captive Insurance Association (DCIA) Jeff Simpson
Hawaii Captive Insurance Council (HCIC) Jerry Yoshida and Paul Shimimoto
Kentucky Captive Association (KCA) Michael Shields
Missouri Captive Insurance Association (MOCIA) David Dimit
Montana Captive Insurance Association (MCIA) John Huth
National Risk Retention Association (NRRA) Joe Deems
North Carolina Captive Insurance Association (NCCIA) Martin Eveleigh, Tom Adams
Tennessee Captive Insurance Association Kevin Doherty
Vermont Captive Insurance Association (VCIA) Rich Smith, Bill Riley
The following topics were discussed:
1. Reputational Challenges Task Force – The main topic was micro captives/831(b) captives/enterprise risk captives. The group discussed the draft “Best Practices” document, the proposed legislation of the Senate Finance Committee to increase the allowable premiums and/or restrict the use of the 831(b) election for single parent captives, and the potential influence of the NAIC on this matter. A number of different ideas and strategies were debated, focusing on trying to stay out ahead of this issue, including the possibility of drafting some common language so that each domicile could approach their
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local senators and insurance regulators. After a lengthy discussion, the group agreed that it would be best to wait and see what comes out of the Self Insurance Institute of America (“SIIA”) meeting on this topic, which is supposed to take place the week of March 16, and Jeff Simpson will report back to the group. 2. Government Analytics – Rich Smith from Vermont reported on Fiscal Note, a web‐based tool that Vermont has purchased for $1,000/month. The tool searches for regulations and legislation based on user specified inputs, and also predicts the probability of the legislation passing. Rich described the tool as “pretty cool” and believes that it was useful for tracking captive insurance related regulations and legislation. Some suggested that having CICA leasing such a product might be a good way of centralizing its use on behalf of all US domiciles. Rich/Vermont will continue to use the tool and will report back at the next meeting. 3. NAIC Multi‐State Reinsurer Definition – Skip Myers reported on the latest updates to the definition, and pointed to the new Preamble that appears to restrict the definition for captives to those life captives doing AXXX and XXX business. This issue will be closely monitored. 4. Next Meeting – A call will be scheduled in August. If other matters arise in the interim, additional calls will be scheduled accordingly. The meeting was adjourned at 5:25pm.
Respectfully submitted,