STAND. COM. REP. NO. 286

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1276

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1276 entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to update the Insurance Code in order to streamline operations and improve administrative efficiency in the Insurance Division, assist the Insurance Division in retaining its accreditation, and reduce the cost of insurance regulation.

 

     Your Committee received testimony in support of this measure from the Insurance Commissioner of the Department of Commerce and Consumer Affairs and the Hawaii Medical Service Association.

 

     Your Committee finds that this measure harmonizes the Insurance Code with applicable provisions of federal law, including the standards and regulations of the National Association of Insurance Commissioners and requirements of federal health care reform laws, thus improving reciprocity with other states and contributing to the maintenance of the Insurance Commission's accreditation.  Your Committee further finds that this measure standardizes language across the Insurance Code, thus promoting consistency and clarity within the law.  Finally, your Committee finds that this measure updates fees and other provisions in the Insurance Code to enable the efficient administration of the Insurance Division.

 

     Your Committee has amended this measure by:

 

     (1)  Inserting an effective date of July 1, 2050, to allow for further discussion; and

 

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1276, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1276, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

ROSALYN H. BAKER, Chair