STAND. COM. REP. NO.  188

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1322

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1322 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE LICENSING,"

begs leave to report as follows:

     The purpose of this bill is to improve insurance licensing by:

(1) Reestablishing issuance and service fees for the limited line motor vehicle rental company producer's license;

(2) Providing that the place of business of licensed adjusters and independent bill reviewers is the place where the licensee principally conducts transactions under the license; and

(3) Allowing receipt of a resident insurance producer license application for the State of Hawaii within 90 days of the cancellation of the applicant's out-of-state resident license.

     The Department of Commerce and Consumer Affairs (DCCA) testified in support of this bill.  Catrala-Hawaii submitted comments.

     Your Committee finds that this bill seeks to improve DCCA's operations by:

     (1)  Amending the insurance licensing statutes to reestablish fees that were inadvertently deleted in previous legislation;

     (2)  Making place-of-business requirements for insurance adjusters and independent bill reviewers more consistent with those for insurance producers; and

     (3)  Providing a more enforceable standard for the exemption from examination and education requirements for insurance producers previously licensed in another state.

     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 H.B. No. 1322 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,

____________________________

ROBERT N. HERKES, Chair