Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1068, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to license insurance agents and brokers.

Specifically, this measure prohibits persons from selling, soliciting, or negotiating insurance unless the persons are licensed. Furthermore, this measure provides for licensing exemptions, licensing examinations, licensing application procedures, the classes of licenses, nonresident licenses, examination exemptions, temporary licenses, license denials and related actions, commissions, appointments, notification of contract or appointment terminations, waiver of nonresident licensing, notification of legal actions taken against licensees, creation of an advisory board to the Insurance Commissioner, and related matters.

Your Committee finds that this measure is a model act developed by the National Association of Insurance Commissioners in response to the federal Gramm-Leach-Bliley Act. Your Committee finds that enactment of this measure is necessary to preserve the State's power to regulate insurance agents and brokers. Your Committee further finds that failure to enact this measure may result in a federal takeover of this portion of insurance regulation.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1068, S.D. 1, and recommends that it pass Third Reading.