Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 3040, S.D. 2, H.D. 2, entitled:

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 require the confidential treatment of nonpublic information of captive insurance companies.

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, financial or otherwise, disclosed in a captive's license application or business plan, or of its parent or parent's member organizations. 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 clarify that all nonpublic information provided by a captive insurer to the Commissioner is required to be treated in a confidential manner, including information other than that contained in a captive's license application or business plan, or of its parent or parent's member organizations. Your Committee also made technical, nonsubstantive amendments to reflect preferred drafting 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. 3040, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3040, S.D. 2, H.D. 2, C.D. 1.