STAND. COM. REP. NO. 3213

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2983
                                        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. 2983, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO CAPTIVE INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to enhance Hawaii's status as
a captive insurance domicile.

     The Insurance Commissioner and Hawaii Captive Insurance
Council Corporation submitted testimony on the measure.

     This measure establishes a new class of captive insurance
companies for captives limited to insuring risks on a reinsurance
or excess basis only.  The authorization of this additional
category of captive insurers will enable organizers to utilize
Hawaii-based facilities to participate in the retention of higher
levels of risk from sources based in and outside of the United
States.  This measure also clarifies financial reporting
requirements for captives. 

     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. 2983, H.D. 1, and recommends that it pass
Second Reading and be placed on the calendar for Third Reading.


 
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                                   STAND. COM. REP. NO. 3213
                                   Page 2


                                   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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