P.O. Box 2815 Honolulu, Hawaii 96803 Minutes Hawaii Captive Insurance Council Corporation Meeting of the Board of Directors Thursday, June 27, 2019 Honolulu, Hawaii 10:00 am (Hawaii Standard Time) Offices of KMH LLP 1003 Bishop Street, Suite 2400 Honolulu, HI 96813 Attendees: Excused: Cindy Belcher, Chair Diane Abbett, Director David Kahaulelio, Vice Chair Christina Kamaka, Asst. Secretary Matt Takamine, President Jill Miura, Treasurer Ryan Nobriga, Vice President Fay Okamoto, Director Denise Straka, Secretary Jamie Asato, Director David Beyer, Director Ed Haik, Director Denys Kazama, Director Scot Sterenberg, Director Jerelyn Sullivan, Director Invited Guests: Masako Ruiz, Asst. Treasurer Kari Nettel, Project Coordinator Gerald Yoshida, Leg Committee Ward Ching, Website Committee Agenda Item Comments/Follow Up A. Call to order Meeting was called to order by Cindy Belcher at 10:06 am. B. Approval of the April 25, 2019 Approved. Board of Directors meeting minutes C. Committee Reports Legislative: Jerry Yoshida reported on behalf of the Legislative and Government Relations committee. A public hearing on the proposed changes to the Hawaii Administrative Rules relating to captives, to among other things, add provisions giving the Commissioner greater oversight tools for captives writing surety business (“Proposed Rule Changes”), was held on Wednesday, May 1, 2019 at the Hawaii Insurance Division. At the conclusion of the hearing, the Insurance Division’s hearings officer recommended that the proposed amendments be adopted with minor non-substantive revisions. The Proposed Rule Changes await final action by the Administration. As previously reported, the provisions of interest to Hawaii- domiciled captives that were originally in the two Administration bills were subsequently inserted into a separate bill, Senate Bill 25 (“SB25”). SB25 was passed by the Hawaii Legislature prior to its adjournment on May 2, 2019. Two provisions in SB25 pertaining to Hawaii-domiciled captive (approval for use of a trade name, and application of article 15 to all captives) remained intact. On June 7, 2019, SB25 was signed into law by the Governor as Act 70 of the 2019 Session Laws. The Article 15 provision in Act 70 will be applicable to all captives, effective July 1, 2019, and the trade name provision in Act 70 will become effective October 1, 2019. Matt suggested we request an update from the Commissioner at the Strategic Meeting. Cindy also reported that she had met with the Commissioner and Beecher Carlson earlier this week and that it was a positive meeting. Membership: Ed Haik reported on behalf of the Membership Committee. 2019 Membership are currently at 83 members. Last year at this time we had 86. - 50 captive owners (48 X $350 = $16,800). Count includes 2 free memberships for 2018 formation and a 2018 payment applied in 2019. - 33 service providers (32 X $900 = $29,700). - Total revenues from service provider and owner members for 2019 = $46,500. - Ahead by $3,050 from last year because of dues increase. Early registration contest ended February 14. This year we had a captive owner and a service provider winner. They were Timothy Harris, United Church Insurance Company and Jill Miura, KMH LLP, respectively. HCIC “Award of Excellence” to continue in 2019 and nomination email to be sent out this month. Roll out of Captive Manager & Captive Owner Firms contest during 2018 forum to help increase membership. Contest will run forum to forum where winners will be announced. Committee anticipates gift card prizes for various categories (i.e. highest percentage of owner members as compared to total managed in domicile, most new members, referrals, etc.). Currently Marsh is in the lead for most captive owner members and Marsh and Artex are tied for new formation members. Strategic Risk Services is in the lead for highest ratio of members to total clients managed. Matt added that during the Strategic Meeting, there will be discussions on increasing HCIC Memberships numbers. Marketing: Matt reported on behalf of the Marketing Committee The committee would like to set the 2020 marketing schedule in time to distribute at the Forum 2019. Hawaii on the Hill 2019 was one of the better events so far. Matt, Ed, Paul, David Beyer (Alaska Airlines) and Mike Owens (Marriott) were in attendance. HCIC hosted lunch for Hawaii State Legislators (Ron Kouchi, Michelle Kidani, Brian Taniguchi, Kai Kahele & Dru Kanuha) – we did well to distinguish our organization and industry from those with whom certain Senators have concern. HCIC Delegation met with Ed Case, Brian Schatz and staffers for Mazie Hirono. Extended “soft” invites to Senate President Ron Kouchi and Rep. James Tokioka (both from Kauai) to attend HCIC Forum in October. Would like to consider extending complimentary invite to Sherry Menor-McNamara, CEO of Hawaii Chamber of Commerce. Upcoming Japan Seminar in Tokyo, JPN will be held over 2 days this year - Nov 19-20, 2019. Nov 19 for the owners’ summit and Nov 20 for prospects. Speaker lineup includes Ryan Nobriga (Hawaiian Dredging), Guy Okano (Hawaii Pacific Health) and Tom Jones (McDermott Will & Emery). Dan Towle (CICA President) will also be attending in support for the first time. We will be sending our sponsor information very soon. We are asking for everyone’s continued and generous support since we are combining two events into one week this year. Education: Jerelyn and Jamie provided a brief update on the Forum 2019. Forum 2019 will be held at the Grand Hyatt Kauai, October 21 – 24th, 2019 Current Room block is 1012 room nights. Contracted block is 760 room nights. HCIC did not amend original contract and is under no obligation for additional rooms. Cut‐off date – September 20, 2019, however there are very few rooms available. The committee will continue to monitor weekly. Registrations are 186 registered to date, includes 21 guest passes (2018 registrations of 234 total, included 31 guest passes) Sponsorships are currently $32,000 to date (2018 sponsorships of $93,000) They included: Platinum – Marsh, Silver – Beecher Carlson, Aon, SRS, Sedgwick, Accuity, KMH, Artex, Willis, SOH HID is pending receipt. Committee is currently pursuing via calls and emails Sessions finalized and confirmed. Keynote speaker finalized – Chipper Wichman, National Tropical Botanical Garden Forum 2020 – Four Seasons Ko Olina, Oahu, October 19 – 22nd, 2020 Finance: Masako reported on behalf of the Finance Committee. There is no report provided for this meeting. A 2nd Quarter report will be available at the next meeting. D. Other Business Matt provided details on a Japanese website that is using the url address of www.hawaiicaptive.com. (the site has since been taken down, but another company still owns the url). In order to minimize confusion, several similar website addresses have been identified for purchase by HCIC. The cost would be under $1500 for 5 years and all addresses can be directed to the current HCIC address of www.hawaiicaptives.com. The board approved the purchase and moving forward with this plan. E. Adjournment The meeting was adjourned at 11:00 AM .