STAND

STAND. COM. REP. NO. 1508

Honolulu, Hawaii

, 2005

RE: S.B. No. 754

S.D. 1

H.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 Judiciary, to which was referred S.B. No. 754, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this bill is to streamline and improve the administration and enforcement of the insurance laws by conforming them to federal laws and national standards. Specifically, this bill:

(1) Requires the Insurance Commissioner (Commissioner) to conduct an examination of each domestic insurer at least once every five years;

(2) Authorizes the Commissioner to order, upon completion of a one-year suspension period, additional one-year extensions of the suspension or revocation of an insurer's certificate of authority, provided there is a basis for the action;

(3) Provides for electronic filing and impact analysis of policy revisions that alter coverage;

(4) Clarifies the extent of a liquidator's authority to hold hearings to determine whether any assets of the insurer have been concealed, misappropriated, or improperly transferred from the insurer;

(5) Streamlines a liquidator's recovery of unpaid premiums by authorizing recovery of unpaid collected premiums owed to the insolvent insurer, and establishing original jurisdiction in the liquidation court to determine premium collection cases; and

(6) Conforms state law more fully with the provisions of the Interstate Insurance Product Regulation Compact.

The Department of Commerce and Consumer Affairs supported this bill. The American Council of Life Insurers submitted comments.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 754, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

		____________________________ SYLVIA LUKE, Chair