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. 1317 entitled:

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, Hawaii Independent Insurance Agents Association, and Association of Insurance and Financial Advisors testified in support of this measure. The American Council of Life Insurance commented on the measure.

Act 216, Session Laws of Hawaii 2001, enacted the Producer Licensing Act. Since the producer licensing laws were adopted, the Insurance Division has continued to review them within the context of other insurance laws for the purpose of establishing greater consistency and efficiency within the laws. This measure proposes changes to the Code and other laws within Title 24, Hawaii Revised Statutes, in furtherance of this purpose.

Upon the recommendation of the Insurance Division, your Committee has amended this measure to delete the definition of "credit hour", which is being inserted in another measure, correct an internal reference, require mutual benefit societies to comply with the quarterly filing requirement imposed on health insurers and health maintenance organizations, and conform annual filing dates. Your Committee also made technical amendments for purposes of clarity, consistency, and style, to reflect language in the Hawaii Revised Statutes, and to reflect preferred drafting style.

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. 1317, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1317, S.D. 1, and be placed on the calendar for Third Reading.