STAND. COM. REP. NO. 1315-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2819
                                     S.D. 1
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 2819, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to establish standards
governing life insurance policy illustrations and to regulate the
activities of insurers and producers with respect to replacement
of existing life insurance policies and annuities.

     Testimony was received in support of this measure from the
Insurance Division of the Department of Commerce and Consumer
Affairs.  The Hawaii State Association of Insurance and Financial
Advisors support Section 2 of this measure and would like to
continue their work with the Insurance Division for Section 3.
The American Council of Life Insurers and State Farm Insurance
Companies support Section 2 of this measure to the extent that it
adopts the National Association of Insurance Commissioners (NAIC)
Life Insurance Illustrations Model Regulation, but oppose Section
3, recommending the adoption of the 1998 NAIC Replacement Model
with the Iowa amendments. 

     Your Committee has amended this measure by changing the
effective date from July 1, 2005 to July 1, 2050 to facilitate
further discussion in Conference Committee of proposed changes
set forth in the National Association of Insurance Commissioners

 
 
 
                                 STAND. COM. REP. NO. 1315-00
                                 Page 2

 
March 13, 2000 draft Life Insurance and Annuities Replacement
Model Regulation.  

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 2819, S.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 2819, 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 and Commerce,



                                   ______________________________
                                   RON MENOR, Chair