STAND. COM. REP. NO. 109

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1066
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No.
1066 entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Increase fines for violation of the insurance statutes
          and rules;

     (2)  Clarify the licensing provisions for fraternal benefit
          society agents; and

     (3)  Require policies provided by mutual benefit societies
          and health maintenance organizations to meet certain
          Flesch Reading Ease tests.

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

     In order to allow mutual benefit societies and health
maintenance organizations time to develop new procedures or
systems to comply with this measure, your Committee has amended
this measure by:


 
 
 
 
                                 STAND. COM. REP. NO. 109
                                 Page 2

 
     (1)  Changing the effective dates of the sections concerned
          with the Flesch Reading Ease tests to January 1, 2000;
          and

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

     As affirmed by the record of votes of the members of your
Committee on Health that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1066, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 1066, H.D. 1, and
be referred to the Committee on Consumer Protection and Commerce.

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



                                   ______________________________
                                   ALEXANDER C. SANTIAGO, Chair