STAND. COM. REP. NO. 546

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1132
                                        




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 S.B. No. 1132 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to amend section
431:19-108(a), Hawaii Revised Statutes (HRS), to change the time
period captive insurance companies are required to be examined by
the insurance commissioner from one to three years.

     The Department of Commerce and Consumer Affairs and Hawaii
Captive Insurance Council presented testimony in support of the
measure.

     Your Committee finds that an annual examination of captives
is not necessary due to the financial strength of the captives
admitted in the State.  This measure would make the examination
requirements of captive insurers consistent with that of other
insurers in the State.

     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 S.B. No. 1132 and recommends that it pass Second
Reading and be placed on the calendar for Third Reading.


 
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                                   STAND. COM. REP. NO. 546
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                                   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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