STAND. COM. REP. NO. 866

Honolulu, Hawaii

RE:    S.B. No. 1410

       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 S.B. No. 1410 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to modernize Hawaii's insurance laws, ease insurers' filing requirements, and bring Hawaii's insurance laws into conformity with the federal and national standards with regards to:

     (1)  The federal Military Personnel Services Protection Act;

     (2)  Long-term insurance care; and

     (3)  The sharing of information with the insurance regulatory agencies of foreign countries.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and the Association of Insurance and Financial Advisors.  Testimony in opposition to this measure was submitted by Hawaii Insurers Council and USAA.  Comments were received from the American Council of Life Insurers (ACLI) and the Hawaii Medical Service Association.

     Your Committee finds that this measure is a reflection of model standards developed by the National Association of Insurance Commissioners. 

     Your Committee, has deleted the section of this measure dealing with the Military Personnel Services Protection Act, and upon the recommendation of the ACLI, has amended this measure to make technical amendments and to add a new section to require training for producers of long-term care insurance.  Your Committee has also amended this measure to delay the effective date to promote further discussion.

     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 S.B. No. 1410, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1410, S.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

BRIAN T. TANIGUCHI, Chair