CONFERENCE COMMITTEE REP. NO. 33-18

 

Honolulu, Hawaii

                  , 2018

 

RE:     S.B. No. 208

        S.D. 2

        H.D. 1

        C.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sirs:

 

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 208, S.D. 2, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO UNCLAIMED LIFE INSURANCE BENEFITS,"

 

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

 

     The purpose of this measure is to:

 

     (1)  Adopt the National Conference of Insurance Legislators' Model Unclaimed Life Insurance Benefits Act, which requires life insurers to conduct database searches using the federal Social Security Administration's Death Master File or similar database to determine whether an insured has died;

 

     (2)  Require life insurers to use good faith efforts to locate any beneficiaries to a policy, contract, or retained asset account; and

 

     (3)  Authorize the Insurance Commissioner to use discretion to limit, exempt, or phase-in compliance with requirements under certain circumstances.

 

     Your Committee on Conference finds that the National Conference of Insurance Legislators' Model Unclaimed Life Insurance Benefits Act provides a foundation for insurers to use the Social Security Administration Death Master File to obtain notice of death of an insured in the absence of a claim and search for beneficiaries within ninety days.  Your Committee on Conference further finds that this measure establishes requirements, based on a national standard of consumer protection, for locating life insurance beneficiaries and enables timely compliance by all life insurers for consumers in the State.

 

     Your Committee on Conference has amended this measure by:

 

     (1)  Clarifying that failure to meet any requirements with such frequency as to constitute a general business practice shall constitute an unfair or deceptive act or practice under Article 13 of the Insurance Code, rather than making a single violation an unfair or deceptive act or practice; and

 

     (2)  Changing its effective date to upon approval.

 

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 208, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 208, S.D. 2, H.D. 1, C.D. 1.

 


Respectfully submitted on behalf of the managers:

 

ON THE PART OF THE HOUSE

 

ON THE PART OF THE SENATE

 

____________________________

ROY M. TAKUMI

Co-Chair

 

____________________________

ROSALYN H. BAKER

Chair

____________________________

SYLVIA LUKE

Co-Chair