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 S.B. No. 574 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the Captive Insurance Administrator's duties, and establish and fund insurance examiner positions within the Captive Insurance Branch (Branch) of the Insurance Division.

The Hawaii Captive Insurance Council testified in support of this measure. The Department of Commerce and Consumer Affairs commented on the measure.

This measure clarifies that the Captive Insurance Administrator is under the direct supervision of the Insurance Commissioner, establishes three insurance examiner positions within the Branch, and appropriates funds for the positions. Your Committee finds that this measure will enable the Branch to more effectively regulate the growing captive insurance industry in the State.

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 S.B. No. 574 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.