Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1163 entitled:

begs leave to report as follows:

The purpose of this bill is to extend the sunset date of

Act 132, Session Laws of Hawaii 2001 (Act 132), to July 1, 2004, to permit continued Insurance Division monitoring of the solvency of dental service organizations.

Testimony in support of this measure was received from the Department of Commerce and Consumer Affairs.

Your Committee finds that Act 132 authorized the Insurance Division to monitor the solvency of dental service organizations and dental service corporations and to shut down insolvent dental plans. The Insurance Commissioner used these powers to seize and begin liquidation proceedings against the Hawaii Dental Health Plan, which was found to be collecting premiums but failing to pay claims. Your Committee finds that without Act 132, the Insurance Division will be unable to act upon future unpaid claims complaints against dental service plans promptly and effectively.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1163 and recommends that it pass Second Reading and be referred to the Committee on Finance.