CONFERENCE COMMITTEE REP. NO.28
Honolulu, Hawaii
, 2001
RE: S.B. No. 1071
H.D. 1
C.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Conference on the disagreeing vote of the Senate to amendments proposed by the House of Representatives in S.B. No. 1071, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this measure is to clarify the bonding and errors and omissions coverage requirements for managing general agents and reinsurance intermediary-managers.
Currently, the law requires managing agents and reinsurance intermediary-managers to be bonded and to maintain an errors and omissions insurance policy, but fails to specify the minimum levels of coverage under the bond and policy.
This measure establishes minimum coverage requirements as follows:
(1) For managing agents:
(a) A bond in an amount equal to the greater of $100,000 or an unspecified percentage of annual gross direct written premiums; and
(b) An errors and omissions policy in an amount equal to the greater of $1,000,000 or an unspecified percentage of annual gross direct written premiums; and
(2) For reinsurance intermediary-managers:
(a) A bond in an amount equal to the greater of $500,000 or an unspecified percentage of annual reinsurance premiums managed, but not to exceed $10,000,000; and
(b) An errors and omissions policy in an amount equal to the greater of $250,000 or an unspecified percentage of annual reinsurance premiums managed, but not exceed $10,000,000.
Your Committee has amended this measure by inserting specific percentage amounts of ten per cent in the provisions relating to the bond requirement and twenty-five per cent in the provisions relating to the errors and omissions policy requirement. Your Committee also made a technical, nonsubstantive amendment for purposes of consistency and style.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1071, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1071, H.D 1, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE HOUSE |
ON THE PART OF THE SENATE |
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____________________________ KENNETH T. HIRAKI, Chair |
____________________________ RON MENOR, Chair |
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