Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Labor & Public Employment, to which was referred H.B. No. 2320 entitled:

beg leave to report as follows:

The purpose of this bill is to update and conform current statutes governing insurer examinations and commercial general liability extended reporting requirements with the changes and revisions in the most current National Association of Insurance Commissioners (NAIC) Model Acts and Model Regulations. Among the other amendments made by this bill, is the adoption of a new part containing annual financial audit requirements applicable to all domestic insurers.

The Insurance Commissioner of the Department of Commerce and Consumer Affairs supported the bill. The American Council of Life Insurers commented on the measure.

Your Committees have amended this bill to delete references to a market plan for workers' compensation insurance in the event of the revocation of a certificate of authority for a specific insurer. Your Committees believe that such language is premature because the provisions are subject to a contingency. Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Labor & Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2320, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2320, H.D. 1, and be referred to the Committee on Finance.