Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 2655, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require the confidential treatment of nonpublic information of captive insurance companies.

Your Committee received testimony in support of this measure from the Insurance Commissioner (Commissioner), Hawaii Captive Insurance Council, and Bank of Hawaii. The Office of Information Practices opposed the measure.

Presently, only nonpublic information of a financial nature that is disclosed by a captive insurance company to the Commissioner is required to be held confidentially. However, captive applicants and licensees are required to submit to the Commissioner other nonpublic information such as personal information relating to a captive's directors and officers, including social security and passport numbers.

This measure extends the confidentiality requirement to all nonpublic information of a captive insurer. Your Committee finds that this requirement will ensure that business-sensitive and personal information remains confidential, unless disclosure is deemed necessary by the Commissioner, and that the information provided to the State will be utilized for regulatory purposes only and will not be subject to disclosure to competitors.

Your Committee has amended this measure to:

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2655, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2655, H.D. 1, S.D. 1, and be referred to the Committee on Judiciary.