STAND. COM. REP. NO. 3014

 

Honolulu, Hawaii

                   

 

RE:     H.B. No. 1624

        H.D. 1

        S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sir:

 

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred H.B. No. 1624, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to delay the implementation of the producer licensing requirements amended by Act 152, Session Laws of Hawaii 2017, until January 1, 2020.

 

     Your Committee received testimony in support of this measure from the Hawaii Insurers Council and National Association of Insurance and Financial Advisors – Hawaii.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

 

     Your Committee finds that, among other things, Act 152, Session Laws of Hawaii 2017 (Act 152), conforms the State's producer licensing requirements to the National Association of Insurance Commissioners' Producer Licensing Model Act by eliminating producer-to-producer appointments.  Your Committee further finds that Hawaii is the only state in the country with producer-to-producer appointments.  The repeal of this appointment process is a major change in the way insurance agents are and have been contracted, as it means that only insurers will be able to appoint individual producers.  According to testimony received by your Committee, as of June 30, 2017, there were seven thousand licensed resident producers in the State, but it is unknown how many contracts between a producer and an insurer must be re-executed in light of Act 152's producer licensing requirements.  This measure therefore delays the implementation requirements for producer licensing required by Act 152, which will provide insurers with ample time to initiate the new producer appointments.

 

     Your Committee has amended this measure by changing its effective date to July 1, 2018.

 

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1624, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1624, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

 

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

 

 

 

________________________________

ROSALYN H. BAKER, Chair