STAND. COM. REP. NO. 675

Honolulu, Hawaii

, 2005

RE: S.B. No. 1230

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 1230 entitled:

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

begs leave to report as follows:

The purpose of this measure is to delay the repeal of Act 132, Session Laws of Hawaii (SLH) 2001, as amended, which allows the Insurance Commissioner to monitor the solvency of dental service corporations and dental service organizations.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs (DCCA).

Your Committee finds that Act 132, SLH 2001, authorized the DCCA to protect the interests of consumers by closing insolvent dental insurance plans that failed to pay claims and by pursuing claims against the principal agents of these plans in order to recover assets on behalf of the policyholders and providers. Under Act 132, SLH, the Insurance Commissioner's authority was established for one year, but has subsequently been extended over the past three years. Although the DCCA has successfully instituted action against the Hawaii Dental Health Plan (HDHP), it is still awaiting information from the federal government regarding any other outstanding claims against the HDHP. Therefore, your Committee determines that an extension of the duration of the Commissioner's authority in this capacity is necessary in order to allow the liquidation proceedings against the HDHP to be brought to a conclusion.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1230 and recommends that it pass Third Reading.

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

____________________________

RON MENOR, Chair