STAND. COM. REP. NO. 1049
Honolulu, Hawaii
, 2005
RE: S.B. No. 1802
S.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1802, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CAPTIVE INSURANCE,"
begs leave to report as follows:
The purpose of this bill is to improve the captive insurance law by removing unnecessary regulation and providing greater clarity and direction. Specifically, this bill:
(1) Reflects the law's broader application to legal entities by replacing references to "companies" with references to "entities" in the definitions and related sections of the captive insurance law;
(2) Provides a cross reference to requirements for service of process upon the Insurance Commissioner (Commissioner) as an agent for a captive insurer;
(3) Repeals the cumbersome and unnecessary prohibition against a risk retention captive stockholder's ownership of more than ten percent of outstanding stock; and
(4) Gives the Commissioner the flexibility to conduct an examination of a captive insurance company once every five years, rather than once every three years, provided that the captive insurance entity has already undergone a triennial examination.
Testimony in support of this bill was received from DCCA and from an attorney who provides legal services for captive insurance companies. Bank of Hawaii supported the intent of this bill.
As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1802, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
|
____________________________ KENNETH HIRAKI, Chair |
||