STAND. COM. REP. NO. 2882

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2472
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 2472, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to clarify various provisions
of the insurance code, establish a general notice requirement for
policy cancellations and nonrenewals, and increase certain
financial requirements and penalties for insurance licensees.

     Testimony on the measure was received from the Insurance
Commissioner (Commissioner), Hawaii Independent Insurance Agents
Association, and American Council of Life Insurers. 

     This measure makes clarifications throughout the insurance
code with respect to terminology, the requirement of an
appointment from an insurer to solicit or place policies, record
sharing and retention, the Commissioner's authority to contract
for professional services, payment of tax refunds out of the
general fund, requirements for persons adjusting losses in the
State during a catastrophe, premium rates, and the laws
applicable to fraternal benefit societies.  Additionally, the
measure establishes a ten-day and thirty-day notice requirement
for policy cancellations and nonrenewals, respectively, increases
minimum irrevocable trust fund requirements for alien insurers,
increases penalties and fines, and requires escheated funds to be

 
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                                   STAND. COM. REP. NO. 2882
                                   Page 2


deposited into the general fund, rather than the insurance
regulation fund. 

     This measure is substantially similar to S.B. No. 2813,
S.D. 1, a measure passed out earlier by your Committee, with the
differences between the two measures being primarily technical in
nature.  However, since the Senate measure more accurately
reflects language in the Hawaii Revised Statutes (HRS), this
measure has been amended to incorporate certain technical
amendments contained in S.B. No. 2813, S.D. 1, that were made for
the purposes of style and accuracy.  Additionally, the measure
has been amended by:

     (1)  Establishing specific monetary fines for persons who
          knowingly violate the licensing requirements of section
          431:9-201, HRS; and 

     (1)  Making other technical amendments not contained in the
          Senate measure. 

     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 H.B. No. 2472, H.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2472, H.D. 2, S.D. 1, and be referred to the
Committee on Ways and Means.

                                   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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