STAND. COM. REP. NO.  1065

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 273

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 273 entitled:

"A BILL FOR AN ACT RELATING TO ANNUITIES,"

begs leave to report as follows:

     The purpose of this bill is to enhance the regulation of sales of annuities by establishing standards and procedures for insurers and insurance producers making recommendations to consumers regarding the purchase or exchange of any annuity.

     The National Association of Insurance and Financial Advisors and American Council of Life Insurers testified in support of this bill.  The Insurance Division and Business Registration Division of the Department of Commerce and Consumer Affairs and a concerned individual testified in opposition to this measure.

     Your Committee has amended this bill by:

     (1)  Clarifying that jurisdiction of the Commissioner of Securities of the Business Registration Division of the Department of Commerce and Consumer Affairs over variable annuities under Chapter 485, Hawaii Revised Statutes, is not affected by this measure; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 273, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 273, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair