STAND. COM. REP. NO. 1559

Honolulu, Hawaii

RE:    H.B. No. 90

       H.D. 2

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 90, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to establish a framework by which the Insurance Commissioner can undertake market conduct examinations of various types of insurer marketplace practices.

     Your Committee received comments in support of the measure from the Insurance Division.

     Your Committee finds that this measure adopts the National Conference of Insurance Legislators Market Conduct Surveillance Model in order to enhance the monitoring of the insurance marketplace, protect policyholders, and ensure compliance with the insurance code and other applicable regulations.

     Your Committee has amended this measure by:

     (1)  Making technical changes to the provisions on confidentiality requirements and data calls; and

     (2)  Changing the source of appropriations from general funds to the compliance resolution fund.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 90, H.D. 2, S.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, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair