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 S.B. No. 1058, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to allow the Insurance Commissioner greater flexibility in approving investments of captive insurance companies.

Testimony in support of this measure was received from the Insurance Commissioner, Bank of Hawaii, and two concerned individuals.

Your Committee finds that the Insurance Commissioner should be given broader authority to determine appropriate investment requirements for each captive licensee. This bill will allow captive insurance companies to invest in safe, alternative investment vehicles, and will also allow Hawaii to compete with the more than 20 other states with captive enabling legislation, some of which impose no investment restrictions on their captives.

Your Committee has amended this bill by making technical, nonsubstantive amendments for purposes of style, clarity, and consistency.

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 S.B. No. 1058, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1058, S.D. 1, H.D. 1, and be referred to the Committee on Judiciary.