STAND. COM. REP. NO. 3217

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2473
                                        H.D. 1
                                        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. 2473, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to streamline the
administration of the insurance laws and to facilitate an
understanding of the requirements governing the insurance
industry. 

     The Insurance Commissioner (Commissioner), State Farm
Insurance Companies, and Consumer Lawyers of Hawaii submitted
testimony on the measure.

     This measure codifies certain sections of the Hawaii
administrative rules relating to proxies, consents, and
authorization of domestic stock insurers, mass merchandising of
motor vehicle insurance, an insurance holding company system, and
the motor vehicle insurance law.  Incorporation of these rules
into statute will provide greater clarification of the insurance
law requirements for consumers and insurance licensees.  Further,
placing these legal requirements in statutes, rather than in
rules, will enable the legislature to make changes to the
requirements as necessary.

     Upon careful consideration, your Committee has amended this
measure by replacing its contents with the language of S.B.

 
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                                   STAND. COM. REP. NO. 3217
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No. 2814, S.D. 1, a substantially similar measure that
incorporates technical amendments proposed by the Commissioner.
Your Committee has also amended this measure by clarifying the
provision relating to motor vehicle insurance identification
cards and making additional technical amendments.  As amended,
this measure:

     (1)  Places the provisions relating to Schedule A and
          Schedule B proxy requirements in the front of the new
          part to article 4, Hawaii Revised Statutes, to
          facilitate an understanding of subsequent provisions;

     (2)  Removes language from the definition of anesthetist
          that expresses a preference for supervision by an
          anesthesiologist over supervision by any other licensed
          physician; 

     (3)  Clarifies that motor vehicle insurance identification
          cards shall be issued for a minimum six-month period
          notwithstanding that premiums may be paid on a monthly
          basis, to allow insurers to offer their policyholders
          the option of monthly payments without incurring
          additional administrative costs for issuing cards on a
          monthly basis; and

     (4)  Contains technical amendments made for purposes of
          clarity, consistency, and style, and to reflect
          existing language in the Hawaii Revised Statutes and
          preferred drafting style. 

     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. 2473, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2473, H.D. 1, S.D. 1, and be placed on the
calendar for Third Reading.


 
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                                   STAND. COM. REP. NO. 3217
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                                   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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