STAND

STAND. COM. REP. NO.2754

Honolulu, Hawaii

, 2002

RE: S.B. No. 2733

S.D. 2

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2733, S.D. 1, 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, National Association of Insurance and Financial Advisors. Testimony in opposition was received from an individual.

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 This measure also reauthorizes the licensing of managing general agents as this authority was inadvertently repealed by Act 216, SLH 2001.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 on the recommendation of the Commissioner with regards to current law relating to insurance producer license examination, as follows:

(1) In section 30 of the bill amending section 431:9A-106(b), HRS, clarifying in paragraph (2) that the licensed producer designated by a business entity must be a natural person and changing in paragraph (3) "business entity" to "licensed producer"; and

(2) In section 31 of the bill amending section 431:9A-109(c), HRS, changing from 12 to 24 months the time in which to renew lapsed licenses.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2733, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2733, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

		____________________________ BRIAN KANNO, Chair