STAND. COM. REP. NO. 506-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2220
                                     




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2220 entitled: 

     "A BILL FOR AN ACT RELATING TO CAPTIVE INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to create a mechanism by which
captive insurance companies that are formed as stock, mutual
corporations, or captive reciprocal insurers, and domiciled in
the State under Article 19 of the Insurance Code, may be
converted to, or merged with or into, another form of captive
insurer.

     Your Committee received testimony supporting this bill from
the Department of Commerce and Consumer Affairs, AON Insurance
Managers (USA) Inc., Becher and Carlson Risk Management, Hawaii
Captive Insurance Council, Hawaii Captive Insurance Management,
Marsh Management Services, and a private attorney.

     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 H.B. No. 2220 and recommends that it pass Second
Reading and be placed on the calendar for Third Reading.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 506-00
                                 Page 2

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



                                   ______________________________
                                   RON MENOR, Chair