Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 595 entitled:

begs leave to report as follows:

The purpose of this bill is to clarify bond and errors and omissions insurance policy requirements for managing general agents and reinsurance intermediary-managers.

The State Insurance Commissioner of the Department of Commerce and Consumer Affairs submitted comments on the bill. The Hawaii Independent Insurance Agents Association submitted testimony with a concern regarding the bond requirement.

Your Committee finds that under the current statutes, each request for clarification of the bond and errors and omissions insurance policy requirements for managing general agents and reinsurance intermediary-managers, must be considered individually. Clarification of these requirements would reduce the workload of the Insurance Division without weakening consumer protection under the insurance code.

Your Committee has amended this bill by:

1. Changing the effective date of this measure to 2050; and
2. Making technical, nonsubstantive amendments for purposes of style, clarity, and consistency.

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. 595, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 595, H.D. 1, and be placed on the calendar for Third Reading.