Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 2889 entitled:

begs leave to report as follows:

The purpose of this measure is to delay the repeal of Act 132, Session Laws of Hawaii 2001, and allow the Insurance Division to continue the legislative mandate of protecting Hawaii's consumers from insolvent insurers.

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

Your Committee finds that Act 132 has enabled the department to protect the interests of consumers by closing down an insolvent dental insurance plan that failed to pay claims, and by pursuing claims against the principal agents of that plan to recover assets on behalf of the policy holders and providers. The department needs a one-year extension of the Act to complete its existing liquidation proceedings.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2889 and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.