STAND. COM. REP. NO. 3283

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2475
                                        H.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. 2475, 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 require health maintenance
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.

     Testimony on this measure was received from the Department
of Commerce and Consumer Affairs (DCCA).

     Your Committee finds that HMOs and mutual benefit societies
act as insurers, and therefore, should fall under the regulation
of the DCCA's Insurance Division as are other insurers.  The
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 believes that the measure will assist the
Insurance Division in its duties to effectively monitor the
financial solvency of such entities.

     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

 
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                                   STAND. COM. REP. NO. 3283
                                   Page 2


purpose of H.B. No. 2475, H.D. 1, and recommends that it pass
Second Reading and be placed on the calendar for Third Reading.

                                   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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