Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2407 entitled:

begs leave to report as follows:

The purpose of this bill is to establish Hawaii as a port of entry for alien insurers (insurers formed under the laws of a nation other than the United States (U.S.). This bill incorporates provisions for the State of Entry Model Law of the National Association of Insurance Commissioners, and allows an alien insurer to establish a base of operations in Hawaii to transact insurance in the U.S., by among other things:

Testimony in support of this measure was received from the Insurance Division, Department of Commerce and Consumer Affairs.

Your Committee finds that in the expanding worldwide market

for insurance, many alien insurers are seeking to conduct business in the United States. Such insurers must obtain a license in each state in which it intends to conduct business, and in most states it is more difficult for a non-U.S. company to obtain a license than it is for a U.S. company, although there is no practical or consumer interest-based reason for this.

Your Committee finds that establishing Hawaii as a port of entry for alien insurers would boost Hawaii's economy through the generation of revenue and the creation of employment opportunities, and move the State further toward its goal of becoming a center of business in the Pacific Rim.

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. 2407 and recommends that it pass Second Reading and be referred to the Committee on Finance.