STAND

STAND. COM. REP. NO.1348

Honolulu, Hawaii

, 2003

RE: H.B. No. 1164

H.D. 1

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1164, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to conform provisions in the Insurance Code (Code) and related chapters to requirements in the Producer Licensing Act.

The Department of Commerce and Consumer Affairs and Hawaii Independent Insurance Agents Association testified in support of this measure. The Hawaii Insurers Council proposed an amendment to the measure.

Since Hawaii adopted the Producer Licensing Act in 2001, the Insurance Division has continued to review the producer licensing laws within the context of other insurance laws for the purpose of establishing greater consistency and efficiency within the law. This measure proposes changes to the Code and to other laws within Title 24, Hawaii Revised Statutes, in furtherance of this purpose.

Your Committee has amended this measure:

(1) To increase the length of time that insurers must retain workers' compensation claims records from five years to eight years;

(2) To require that mutual benefit societies file quarterly reports with the Insurance Commissioner; and

(3) By making technical amendments for purposes of clarity, consistency, and style, and to accurately reflect existing language in the Hawaii Revised Statutes.

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 H.B. No. 1164, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1164, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

		____________________________ RON MENOR, Chair