STAND. COM. REP. NO.  1802

 

Honolulu, Hawaii

                , 2007

 

RE:   S.B. No. 1410

      S.D. 1

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1410, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

begs leave to report as follows:

 

     The purpose of this bill is to incorporate the recommendations of the National Association of Insurance Commissioners to conform Hawaii's insurance laws with national standards regarding:

 

(1)  Long-term care insurance; and

 

(2)  The sharing of information with foreign insurance regulatory agencies by the Insurance Commissioner to facilitate the regulation of the insurance industry.

 

     The Department of Commerce and Consumer Affairs testified in support of this bill.  The National Association of Insurance and Financial Advisors supported the intent of this measure.  The American Council of Life Insurers supported this bill with amendments.  The Hawaii Medical Service Association submitted comments.

 

     Your Committee has amended this measure by, among other things:

 

(1)  Authorizing the Insurance Commissioner, pursuant to the federal Military Personnel Financial Services Protection Act, to protect service members of the U.S. Armed Forces by adopting rules declaring certain life insurance practices to be false, misleading, deceptive, or unfair;

 

(2)  Providing that effective one year after the enactment of state legislation establishing a Long-term Care Partnership Program pursuant to the federal Deficit Reduction Act of 2005, insurance producers selling, soliciting, or negotiating long-term care insurance must complete mandatory training;

 

(3)  Allowing telephonic enrollment for group long-term care policies;

 

(4)  Clarifying the provisions regarding long-term care insurance nonforfeiture benefits and triggers for contingent benefits;

 

(5)  Changing the effective date to July 1, 2007; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1410, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1410, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

 

 

 

____________________________

ROBERT N. HERKES, Chair