STAND. COM. REP. NO.  1061

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 90

      H.D. 2

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. 90, 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 enhance the monitoring of the insurance marketplace, protection of insurance policyholders, and compliance with the Insurance Code and regulations, by adopting the National Conference of Insurance Legislators Market Conduct Surveillance Model Law, which establishes a framework for the Insurance Commissioner to perform market conduct examinations of domestic and foreign insurers' marketplace practices.

     The American Council of Life Insurers testified in support of this bill.  The State Insurance Commissioner supported the intent of this measure with suggested amendments.

     Upon further consideration, your Committee has amended this bill by:

     (1)  Inserting an appropriation for an unspecified amount of

          funds to carry out the purposes of this bill;

     (2)  Changing the effective date to July 1, 2020, to

          encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for style,

          clarity, and consistency.

     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. 90, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 90, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair