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,
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________________________________ ROSALYN H. BAKER, Chair |
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