STAND. COM. REP. NO. 512-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2475
                                     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. 2475 entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to require health maintance
organizations (HMOs) and mutual benefit societies to file audited
statements on a timely basis and require them to file these
statements in accordance with the standards set forth by the
National Association of Insurance Commissioners.

     The Insurance Division of the Department of Commerce and
Consumer Affairs (DCCA) testified in support of this bill.

     Your committee finds that HMOs and mutual benefit societies
act as insurers, and therefore, should be regulated by the
Insurance Division of the DCCA as are other insurers.  This
measure ensures that HMOs and mutual benefit societies are
subject to the same financial reporting provisions of the
Insurance Code as all other insurers.

     Your committee has amended this measure by making technical,
nonsubstantive amendments for purposes of style and clarity. 

     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. 2475, as amended herein, and recommends that

 
 
                                 STAND. COM. REP. NO. 512-00
                                 Page 2

 
it pass Second Reading in the form attached hereto as H.B. No.
2475, 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