STAND. COM. REP. NO.  1235

 

Honolulu, Hawaii

                , 2009

 

RE:   S.B. No. 892

      S.D. 1

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 892, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

beg leave to report as follows:

 

     The purpose of this measure is to update the Insurance Code by making various housekeeping or technical changes, including updating statutory cross references and continuing education requirements.

 

     Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs, the American Council of Life Insurers, the Hawaii Captive Insurance Council, and the Hawaii Independent Insurance Agents Association.  Comments on the measure were received from the Hawaii Medical Service Association and the National Association of Insurance and Financial Advisors.

 

     Your Committees find that this measure will conform the Insurance Code with best practices standards with respect to regulating the insurance industry.

 

     Your Committees have amended this measure by:

 

     (1)  Deleting the amendment that allowed audits to be prepared pursuant to rules adopted by the Insurance Commissioner, as an alternative the current requirement to follow the National Association of Insurance Commissioners' accounting practices and procedures;

 

     (2)  Requiring the Insurance Commissioner to provide notice of new continuing education requirements to the appropriate parties;

 

     (3)  Incorporating the contents of H.B. No. 1072, H.D. 1, into the measure which authorizes the Department of Commerce and Consumer Affairs to conduct criminal history record checks on licensees and applicants for licensure under title 24 of the Hawaii Revised Statutes; and

 

     (4)  Requiring insurance license applicants to provide a set of fingerprints for the Insurance Commissioner to obtain and receive national and state criminal history record checks.

 

     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 S.B. No. 892, S.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 892, S.D. 1, 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,

 

 

____________________________

JON RIKI KARAMATSU, Chair

 

____________________________

ROBERT N. HERKES, Chair