STAND. COM. REP. NO. 1552

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1071
                                        H.D. 1
                                        S.D. 2




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

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 1071, H.D. 1, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to make continuing education a
prerequisite for license renewals of insurance agents and
solicitors in either life or disability insurance or property and
casualty insurance.

     Furthermore, this measure establishes an insurance licensing
administration special fund to be administered by the Insurance
Commissioner to carry out licensing activities, including
continuing education, concerning insurance agents and solicitors.
This bill also raises insurance licensing and authorization fees
and reroutes them from the general fund to the newly created
special fund.  The measure also appropriates funds out of the
special fund over the next two fiscal years for continuing
education.

     Additionally, this measure levies an assessment against all
insurers, agents, brokers, solicitors, adjusters, and limited
licensees over the next two fiscal years.


 
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                                   STAND. COM. REP. NO. 1552
                                   Page 2


     Your Committee finds that continuing education requirements
for licensees under the insurance code are necessary to maintain
professional competence in the rapidly changing and complex world
of insurance.  The knowledge that was formerly necessary to
obtain initial licensure is not necessarily sufficient to sustain
a licensee throughout the rest of the licensee's career.
Maintaining competency requires diligent and continual study of
changes in both the industry and the laws governing the industry.

     Your Committee has amended this measure by exempting the
first $25,000 of premiums of the Hawaii Employers' Mutual
Insurance Company, Inc., from levy by the special compensation
fund administered by the Director of Labor and Industrial
Relations under the workers' compensation law.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1071, H.D. 1, S.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as H.B. No. 1071,
H.D. 1, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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