STAND. COM. REP. NO. 1262

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 90

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred H.B. No. 90, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

begs leave to report as follows:

 

     The purpose of this measure is to establish a framework by which the Insurance Commissioner can undertake market conduct examinations of various types of insurers' marketplace practices.

 

     This measure adopts the National Conference of Insurance Legislators Market Conduct Surveillance Model in order to enhance the monitoring of the insurance marketplace, protect policyholders, and ensure compliance with the insurance code and other applicable regulations.  This measure also appropriates funds to the Department of Commerce and Consumer Affairs to assist in carrying out the requirements set forth in the measure.

 

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and the American Council of Life Insurers.  The American Insurance Association submitted comments on this measure.

 

     Your Committee finds that this measure creates a process and system to identify and attempt to remedy market conduct problems that have a substantial adverse impact on consumers, policyholders, and claimants.  This measure also creates procedures to communicate and coordinate market conduct actions among other states through the National Association of Insurance Commissioners in order to create efficiency in the sharing of information and the coordination of analysis and examination efforts.

 

     Your Committee has amended this measure, based upon the agreement between the American Council of Life Insurers and the American Insurance Association, by adding additional model language from the National Conference of Insurance Legislators with regard to the level of confidentiality and privilege afforded to insurance compliance self-evaluative audit documents and the confidentiality of data calls used for market analysis, market conduct, or other regulatory requests.  Your Committee has also made technical, nonsubstantive amendments for the purposes of clarity and style.

 

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 90, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 90, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

 

 

 

____________________________

BRIAN T. TANIGUCHI, Chair