STAND. COM. REP. NO. 510-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2471
                                     H.D. 1




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. 2471 entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAII INSURANCE GUARANTY
     ASSOCIATION,"

begs leave to report as follows:

     The purpose of this measure is to update the guaranty fund
provisions that are applicable to the Hawaii Insurance Guaranty
Association (HIGA).  These amendments will allow HIGA to better
implement the purpose of HIGA as specified in section 431:16-102,
Hawaii Revised Statutes.

     Your Committee finds that these revisions would clarify the
original intent of the law.  This measure will provide better
protection for the general public against insolvencies and reduce
the cost of insolvencies that are passed on to the general
public.

     Testimony was received in support of this measure from the
Department of Commerce and Consumer Affairs and HIGA.

     Technical nonsubstantive amendments were made for purposes
of clarity, consistency and style.

     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. 2471, as amended herein, and recommends that

 
 
                                 STAND. COM. REP. NO. 510-00
                                 Page 2

 
it pass Second Reading in the form attached hereto as H.B. No.
2471, H.D. 1, and be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   RON MENOR, Chair