STAND. COM. REP. NO.803

Honolulu, Hawaii

, 2003

RE: S.B. No. 1316

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1316 entitled:

"A BILL FOR AN ACT RELATING TO DENTAL INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to extend from July 1, 2003 to July 1, 2004 the authority of the Department of Commerce and Consumer Affairs to monitor the solvency of dental service organizations and corporations.

Your Committee finds that Act 132, Session Laws of Hawaii 2001, made dental service corporations and organizations subject to the Insurance Commissioner's enforcement, examination, supervision, rehabilitation, and liquidation powers. Prior to that Act, not all dental plans were subject to regulation by the Commissioner, and the granting of this authority was necessary to allow the Commissioner to protect consumers from the imminent failure of one particular dental insurer.

Your Committee agrees with the intent of this measure, and finds that extending the sunset date for an additional year will allow the Department of Commerce and Consumer Affairs to continue to protect the interests of consumers by shutting down insolvent dental insurance plans that are failing to pay claims, and by pursuing claims against the principal agents of these plans to recover assets on behalf of policy holders and providers.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1316 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair