STAND. COM. REP. NO.2092
Honolulu, Hawaii
, 2002
RE: S.B. No. 2733
S.D. 1
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 S.B. No. 2733 entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE,"
begs leave to report as follows:
The purpose of this measure is to clarify and make consistent the producer licensing laws and related insurance laws.
Testimony in support of this measure was received from the Insurance Commissioner (Commissioner), Hawaii Independent Insurance Agents Association, American Council of Life Insurance, and National Association of Insurance and Financial Advisors.
The Producer Licensing Act was enacted pursuant to Act 216, Session Laws of Hawaii (SLH) 2001, and goes into effect on July 1, 2002. This Act replaces the various regulatory schemes governing general agents, subagents, and solicitors with a single licensing scheme for insurance producers.
This measure reconciles inconsistencies in the insurance code and other insurance laws that occurred upon the adoption of the Act. This measure also reauthorizes the licensing of managing general agents as this authority was inadvertently repealed by Act 216, SLH 2001.
Your Committee has amended this measure by incorporating amendments proposed by the Commissioner that:
(1) Authorize the denial of a license issuance or extension based upon the extent to which the license applicant's insurance sales are represented by controlled business;
(2) Limit the number of designations that may be accepted by a licensed producer;
(3) Reduce the penalty for late payment of a renewal fee;
(4) Clarify a producer's authority to appoint other producers as agents and to terminate relationships with other producers;
(5) Authorize the Commissioner to grant additional time to a licensee on extended active military duty to comply with continuing education requirements;
(6) Clarify the Commissioner's authority to revoke or suspend the certificate of a continuing education provider for violations of the insurance code; and
(7) Make other corrections or clarifications.
Additionally, your Committee has amended this measure by making technical changes to correct typographical errors, correctly reflect the language in the Hawaii Revised Statutes, and to reflect preferred drafting style.
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 S.B. No. 2733, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2733, S.D. 1, and be referred to the Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,
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____________________________ RON MENOR, Chair |
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