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. 1200, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to improve Hawaii's captive insurance company law under article 19 of the Insurance Code by:

Testimony in support of this bill was received from the Bank of Hawaii and two attorneys. The Department of Commerce and Consumer Affairs presented comments on this measure.

Your Committee finds that this bill will further enhance Hawaii's attractiveness as a captive insurance company haven by providing greater internal consistency within the State's captive insurance company law.

Your Committee further finds that this bill will expedite reports to the Insurance Commissioner by allowing any two principal officers, or an attorney-in-fact in the case of a captive insurance company formed as a reciprocal insurer, to sign statements or documents required by the Insurance Commissioner. Your Committee notes that captives formed as reciprocal insurers are unincorporated associations without officers that utilize an attorney-in-fact to conduct their operations.

Your Committee has amended this bill by 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 S.B. No. 1200, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1200, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.