STAND. COM. REP. NO. 982

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1070
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 1070, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE INSURANCE CODE,"

begs leave to report as follows:

     The purpose of this measure is to require a triennial,
rather than an annual examination of captive insurance companies
by the Insurance Commissioner.

     The Insurance Commissioner presented testimony in support of
the measure.  The Hawaii Captive Insurance Council, though not
present at the hearing, submitted written testimony in support of
the measure.

     Your Committee finds that an annual examination of captive
insurance companies is unnecessary due to the financial strength
of captives in this State.  This measure, which requires a
triennial examination, but authorizes more frequent examinations
if necessary, would make the examination requirements for
captives consistent with the requirements for other insurers in
the State and with the requirements of other captive domiciles. 
     

     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 H.B. No. 1070, H.D. 1, and recommends that it pass
Second Reading and be placed on the calendar for Third Reading.

 
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                                   STAND. COM. REP. NO. 982
                                   Page 2


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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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