STAND. COM. REP. NO. 280

Honolulu, Hawaii

, 2005

RE: H.B. No. 642

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred H.B. No. 642 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

beg leave to report as follows:

The purpose of this bill is to streamline and update Hawaii's insurance statutes in conformity with federal law and national standards, and to improve the efficiency of the Department of Commerce and Consumer Affairs (DCCA}. Among other amendments, this bill:

(1) Defines "gross premiums" with regard to surplus lines insurance;

(2) Inactivates a surplus lines broker, adjuster, or independent bill reviewer license where the licensee fails to pay any required fees or penalties;

(3) Provides for reciprocity in licensing of surplus lines producers;

(4) Amends the definition of "limited lines insurance" to remove variable life and variable annuity products from the lines of insurance for which a limited lines license may be issued;

 

(5) Removes the term "resident" from provisions of article 9A of the Insurance Code that restrict an insurance producer license to a "resident applicant" and designate an insurance producer license as a "resident insurance producer license";

(6) Requires rate filings by electronic, optical, or telephonic means in addition to printed copies; and

(7) Extends from 20 to 30 days the time by which the Commissioner must hold a hearing when there is a demand to determine the reasonableness of the Insurance Commissioner's imposition of license sanctions.

Testimony in support of this bill was received from the Insurance Commissioner of DCCA. The American Council of Life Insurers testified that it is in the process of reviewing the bill with its members and may submit testimony in the future.

Your Committees have amended this bill by:

(1) Providing an effective date of July 1, 2099, in the interest of promoting additional dialogue on the bill; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 642, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 642, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

 

____________________________

SYLVIA LUKE, Chair

____________________________

KENNETH HIRAKI, Chair