STAND. COM. REP. NO. 1039_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1067
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1067, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to establish a mandatory
continuing education program for general agents, subagents,
solicitors, designated representatives, and nonresident agents
licensed to do business in Hawaii's insurance industry.

     The Department of Commerce and Consumer Affairs and the
State Farm Insurance Companies testified in support of this bill.
The Hawaii State Association of Life Underwriters, the Hawaii
Independent Insurance Agents Association, and the Atlas Insurance
Agency, Inc., commented on this bill.

     Your Committee advises the Insurance Commissioner
(Commissioner) to meet with representatives from:

     (1)  The Hawaii Chapter of Financial Service Professionals;

     (2)  Chartered Property and Casualty Underwriters;

     (3)  The Hawaii State Association of Life Underwriters;

     (4)  The Hawaii Independent Insurance Agents;

     (5)  State Farm Insurance Companies; and


 
                                 STAND. COM. REP. NO. 1039_______
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     (6)  The Hawaii Insurers Council;

to receive advice on the scope and nature of the continuing
education courses to be provided, as to be consistent with the
provisions of this bill.  Your Committee further advises that the
Commissioner seek representation by individuals from these
organizations who are involved in a variety of lines of
insurance.

     Your Committee has amended this bill by:

     (1)  Increasing the limit that the Commissioner may expend
          from the Insurance Licensing Administration Special
          Fund (Fund) from $1,000,000 to $1,500,000 during fiscal
          years 1999-2000 and 2000-2001;

     (2)  Specifying that Fund moneys will not revert to the
          general fund;

     (3)  Raising fees by fifty percent rather than one hundred
          percent;

     (4)  Instituting an assessment of fifty percent of the
          current fees during FY 1999-2000 and FY 2000-2001, for
          all insurers, general agents, subagents, non-resident
          agents, brokers, solicitors, adjusters, limited
          licensees under section 431:9-214(c) Hawaii Revised
          Statutes (HRS), managing general agents, reinsurance
          intermediaries, surplus line brokers, and designated
          representatives;

     (5)  Establishing the penalties for late payment of
          assessments; and

     (6)  Making technical, nonsubstantive changes for style and
          clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1067, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1067, H.D.
2.


 
 
 
 
 
                                 STAND. COM. REP. NO. 1039_______
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair