STAND. COM. REP. NO. 2507

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2814
                                        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 S.B. No. 2814 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 law and to facilitate an
understanding of the requirements governing the insurance
industry. 

     The Insurance Commissioner, Consumer Lawyers of Hawaii, and
an individual 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:


 
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                                   STAND. COM. REP. NO. 2507
                                   Page 2


     (1)  In section 2 of this Act, placing the provisions
          relating to Schedule A and Schedule B proxy
          requirements in the front of the new part to facilitate
          an understanding of subsequent provisions;

     (2)  In section 3 of this Act, deleting provisions relating
          to self-insurer agreements to conform the requirements
          for self-insurers to the requirements for insurance
          companies;

     (3)  In section 4 of this Act:

          (A)  Removing language from the definition of
               anesthetist that expresses a preference for
               supervision by an anesthesiologist over
               supervision by a licensed physician; and

          (B)  Deleting the definitions of claimant, eligible
               injured person, physician, and specialist because
               these definitions are unnecessary or do not
               conform to current law; and

     (4)  Throughout the Act, making technical changes 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 S.B. No. 2814, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 2814, S.D. 1, 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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