STAND. COM. REP. NO.  1763-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 3023

      S.D. 2

      H.D. 2

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 S.B. No. 3023, S.D. 2, 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 keep Hawaii competitive as a leading captive insurance jurisdiction by authorizing the creation of special purpose financial captive insurance companies to provide securitization of insurance risks.

     The Department of Commerce and Consumer Affairs, Hawaii Captive Insurance Council, Artex Risk Solutions, Inc., First Hawaiian Bank, Hawaii Bankers Association, and several concerned individuals testified in support of this bill.  The Reinsurance Association of America provided comments on this measure.

     Your Committee has amended this bill by making technical, nonsubstantive amendments for clarity, consistency, and style.

     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 S.B. No. 3023, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3023, S.D. 2, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair