STAND. COM. REP. NO.1382

Honolulu, Hawaii

, 2001

RE: S.B. No. 1068

S.D. 1

H.D. 2

 

 

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 S.B. No. 1068, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PRODUCER LICENSING,"

begs leave to report as follows:

The purpose of this bill is to conform Hawaii's licensing laws to the requirements of the federal Financial Services Modernization Act of 1999, P.L. 106-102, more commonly known as the Gramm-Leach-Bliley Act. The federal law requires that a majority of the states must have "producer licensing" laws in place by November 12, 2002 that are either uniform or reciprocal to each other. This bill adopts the National Association of Insurance Commissioners' Producer Licensing Model Act that was created in response to the federal mandate.

The Department of Commerce and Consumer Affairs, Association of Insurance and Financial Advisors-Hawaii, National Association of Independent Insurers, State Farm, and American Council of Life Insurers submitted testimony in support of this bill. The Office of Information Practices, Hawaii Independent Insurance Agents Association, and Hawaii Insurers Council submitted comments on this bill.

Your Committee has amended this bill by deleting the exemption from licensing requirements for employees that respond to requests from existing policyholders on existing policies and who are not compensated based on the volume of the premiums that result from such services.

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 S.B. No. 1068, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1068, S.D. 1, H.D. 2.

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

____________________________

DWIGHT Y. TAKAMINE, Chair