STAND. COM. REP. NO.  1342-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 3019

      S.D. 1

      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 Judiciary, to which was referred S.B. No. 3019, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to amend certain provisions of the Insurance Code to allow insurers more flexibility in their investments, subject to certain limitations, and to update the Investment Pools law to reflect current regulatory standards.

     The Department of Commerce and Consumer Affairs, Artex Risk Solutions, Inc., Hawaii Medical Service Association, Pacific Guardian Life Insurance Company, Ltd., and Willis Management (Hawaii) supported this bill.  The Hawaii Captive Insurance Council supported the intent of this measure.

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

     (1)  Deleting the requirement that an insurer maintain 100 percent of its ceded reinsurance premium payable required by the Insurance Code in certain assets; and

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

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3019, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3019, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

TOMMY WATERS, Chair