STAND. COM. REP. 272
Honolulu, Hawaii
, 2003
RE: H.B. No. 1164
H.D. 1
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. 1164 entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE,"
begs leave to report as follows:
The purpose of this bill is to conform the Hawaii Insurance Code (Code) and related statutes, to article 9A of the Code the Producer Licensing Act (PLA), enacted in Act 216, Session Laws of Hawaii (SLH) 2001. These revisions will modernize insurance licensing laws and provide uniformity and reciprocity with the laws of other states, as mandated by the federal Gramm-Leach-Bliley Act.
Among other things, this bill:
(1) Provides that the Insurance Commissioner (Commissioner) shall deny, suspend, or refuse to renew, reinstate, or restore a license under PLA if the licensee or applicant is:
(A) In noncompliance with an order of support or a subpoena or warrant relating to a paternity or child support proceeding; or
(B) In default or breach of any student loan, student loan repayment contract, scholarship contract, or repayment plan;
(2) Reestablishes bond and insurance requirements for managing general agents that were inadvertently repealed by amendments to PLA and related statutes in Act 155, SLH 2002;
(3) Changes the deadline for insurer filings from April 30 to March 1 of each year in conformity with national standards;
(4) Clarifies:
(A) The type of information captive insurers must file with the Commissioner;
(B) That 50 minutes of continuing education for producers equals one credit hour; and
(C) Which documents domestic, alien, and foreign insurers must file with the Commissioner and the National Association of Insurance Commissioners;
(5) Makes numerous nonsubstantive changes to the Hawaii Revised Statutes to ensure conformity with PLA, by among other things, substituting the term:
(A) "Producer" for "general agent", "subagent", "solicitor", and "agent"; and
(B) "Accident and health or sickness insurance for "disability insurance";
(6) Amends insurer tax provisions to refer to gross premiums "reported" by the insurer, rather than "received", to reflect current insurer reporting practice;
(7) Reflects in the statutes, the American Fertility Society's name change to "American Society for Reproductive Medicine"; and
(8) Makes numerous other technical, nosubstantive changes.
Testimony in support of this measure was submitted by the Hawaii Independent Insurance Agents Association. The Department of Commerce and Consumer Affairs (DCCA) testified in support of this measure and offered an amendment. The American Council of Life Insurance offered comments on this measure.
Your Committee has amended this bill:
(1) As requested by DCCA, by deleting section 56 of the bill, which amends the definitions of "credit hour" and "limited line credit insurance";
(2) Amending Act 39, Session Laws of Hawaii 2002, to ensure that the amendments made to section 431:2-216 by that Act will not be repealed when the section is reenacted on June 30, 2003, pursuant to section 11 of Act 243, SLH 2000;
(3) Changing the effective date of the bill to July 1, 2050, to allow further examination of the bill; and
(4) Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.
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. 1164, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1164, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,
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____________________________ KENNETH T. HIRAKI, Chair |