STAND. COM. REP. NO. 1402

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1128
                                     S.D. 2
                                     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 Consumer Protection and Commerce, to which
was referred S.B. No. 1128, S.D. 2, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to amend various provisions
of the Insurance Code by:

     (1)  Increasing fines for the violation of the Insurance
          Code from not less than $10 nor more than $1,000, to
          not less than $100 nor more than $10,000;

     (2)  Rewriting a licensing provision applicable to fraternal
          benefit society agents to clarify applicability; and

     (3)  Ensuring that mutual benefit society policies are
          readable by requiring that they meet the standards of
          the Flesch Reading Ease test.

     Your Committee understands that this bill contains the
contents of H.B. No. 1066, H.D. 1, which was passed out earlier
this session by your Committee.


 
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                                 STAND. COM. REP. NO. 1402
                                 Page 2

 
     Your Committee received supporting testimony from the state
insurance commissioner and from the Hawaii Medical Service
Association (HMSA).

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1128, S.D. 2, H.D. 1, and recommends that it
be referred to the Committee on Finance.

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



                                   ______________________________
                                   RON MENOR, Chair

 
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