STAND. COM. REP. NO. 1229

Honolulu, Hawaii

RE:    H.B. No. 1322

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, 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 measure is to make various amendments to the existing law governing insurance licensing.

     Specifically, this measure:

     (1)  Re-establishes the limited line motor vehicle rental company producer's license fee at $1,000, and the "all services" fee at $600 per year;

     (2)  Mandates that adjusters and independent bill reviewers' place of business be where the licensee principally conducts transactions under the license; and

     (3)  Changes the exemption from the education and examination requirements for producers previously licensed for same lines of authority in another state by allowing receipt of resident producer license applications for the State within ninety days of cancellation of the applicant's out-of-state resident license.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs.  Testimony in opposition to this measure was received from the American Council of Life Insurers.

     Your Committee finds that re-establishing the issuance and all services fees applicable to limited line motor vehicle rental company producer's licensee and requiring adjusters and independent bill reviewers' place of business be located where the licensee principally conducts transactions under the license will improve the Department of Commerce and Consumer Affair's operations.

     Your Committee has amended this measure to remove the changes made to the exemption from the education and examination requirements for producers previously licensed for same lines of authority in another state.  Your Committee has also amended the effective date to promote further discussion.  Your Committee also made technical, nonsubstantive changes for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1322, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1322, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

BRIAN T. TANIGUCHI, Chair