STAND. COM. REP. NO.1280
Honolulu, Hawaii
, 2001
RE: H.B. No. 592
H.D. 1
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committees on Commerce, Consumer Protection and Housing and Judiciary, to which was referred H.B. No. 592, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO PRODUCER LICENSING,"
beg leave to report as follows:
The purpose of this measure is to adopt the National Association of Insurance Commissioners' Producer Licensing Model Act in order to maintain the State's oversight of insurance agent and broker licensing.
The Hawaii Independent Insurance Agents Association and Association of Insurance and Financial Advisors testified in support of this measure. The Insurance Commissioner, State Farm Insurance Companies, American Council of Life Insurers, and National Association of Independent Insurers also testified in support, but additionally offered amendments or expressed concerns. The Hawaii Insurers Council testified in opposition to the measure and the Office of Information Practices submitted comments.
The Financial Services Modernization Act of 1999, more commonly known as the Gramm-Leach-Bliley Act (GLBA), requires the majority of the states to adopt uniform or reciprocal licensing laws for insurance producers by November 12, 2002. A failure by the states to adopt uniform laws triggers the establishment of the National Association of Registered Agents and Brokers, a federal licensing authority that would assume licensing oversight from the states until the entity's dissolution by Congress.
Your Committees find that it is in the best interests of consumers that the State retain licensing oversight of insurance agents and brokers. Therefore, in response to the GLBA mandate, this measure adopts the National Association of Insurance Commissioners' Producer Licensing Model Act. Adoption of the model legislation will improve the efficiency and reduce the costs of issuing and renewing insurance producer licenses.
Your Committees have amended this measure by:
(1) Clarifying the definitions of "approved continuing education course", "approved course provider", and "limited lines producer";
(2) Deleting an exemption from the continuing education license renewal requirement for nonresident agents or brokers whose states of domicile have reciprocity agreements with this State under which continuing education requirements for Hawaii licensees are waived;
(3) Clarifying requirements relating to the appointment of insurance producers as agents of an insurer;
(4) Repealing provisions in chapter 431, Hawaii Revised Statutes (HRS), that are rendered obsolete by the adoption of the Model Act provisions;
(5) Repealing chapter 431, article 9A, HRS, relating to managing general agents; and
(6) Making technical amendments for purposes of clarity and consistency and to reflect preferred drafting style.
As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 592, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 592, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection and Housing and Judiciary,
|
____________________________ BRIAN KANNO, Chair |
____________________________ RON MENOR, Chair |
|