STAND. COM. REP. NO. 305-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1935
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Consumer Protection and Commerce and
Judiciary and Hawaiian Affairs, to which was referred H.B. No.
1935 entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

beg leave to report as follows:

     The purpose of this bill is to allow the Department of
Commerce and Consumer Affairs (DCCA) to regulate independent bill
reviewers (IBRs).  The measure establishes a regulatory scheme
that governs the IBR industry and provides for the licensure of
IBRs.

     Testimony in support of this measure was submitted by the
Insurance Division of the DCCA and the Consumer Lawyers of
Hawaii.  

     Testimony in opposition to this measure was submitted by the
Hawaii Insurers Council, State Farm Insurance Companies, Argonaut
Insurance Company, ADP Integrated Medical Solutions-Hawaii, and a
concerned citizen.  

     Your Committees find that IBRs are an integral part of the
insurance industry, and therefore, IBRs should be licensed and
regulated as are other aspects of the insurance industry.  Your
Committees also find that the practice of contingency fees for
IBRs should be prohibited. 


 
 
 
                                 STAND. COM. REP. NO. 305-00
                                 Page 2

 
     Your Committees have amended this measure to incorporate
technical non-substantive amendments made for purposes of style
and clarity.

     As affirmed by the records of votes of the members of your
Committees on Consumer Protection and Commerce and Judiciary and
Hawaiian Affairs that are attached to this report, your
Committees are in accord with the intent and purpose of H.B. No.
1935, as amended herein, and recommend that it pass Second
Reading in the form attached hereto as H.B. No. 1935, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Consumer
                                   Protection and Commerce and
                                   Judiciary and Hawaiian
                                   Affairs,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ERIC G. HAMAKAWA, Chair            RON MENOR, Chair