STAND. COM. REP. NO.620

Honolulu, Hawaii

, 2001

RE: H.B. No. 1243

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1243, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CAPTIVE INSURANCE,"

begs leave to report as follows:

The purpose of this bill is to amend captive insurance laws by allowing one or more sponsors to form a leased capital facility to insure solely the risks of its participants.

More specifically, the risks of participants are to be insured through participant contracts that segregate each participant of related participants' liabilities through one or more protected cells. The bill also specifies financial and operational requirements for leased capital facilities.

The Department of Commerce and Consumer Affairs, Marsh Management Services, Inc., Becher and Carlson Risk Management, Inc., and two individuals submitted testimony in support of this bill.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1243, H.D. 1, and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

DWIGHT Y. TAKAMINE, Chair