STAND. COM. REP. NO.  811-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 94

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 94, 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 ensure that a person buying a life insurance policy has an economic interest in the continued life, not the death, of the insured and provide other protections for life settlements consumers by enacting the National Conference of Insurance Legislators' Life Settlements Model Act, which establishes consumer protections in life settlement transactions where the owner of a life insurance policy transfers the death benefit for compensation that is less than the expected death benefit, but more than the surrender value of the policy.

     The Department of Commerce and Consumer Affairs, American Council of Life Insurers, and National Association of Insurance and Financial Advisors supported this bill.  The Life Settlement Institute submitted comments.

     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. 94, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair